
In Q4 2024, the latest eNPS (Employee Net Promoter Score) data from BambooHR revealed a general decline in employee satisfaction across nearly every industry. This is particularly unusual given that Q4 is typically a period of increased happiness and engagement, often driven by the holiday season and year-end activities.
“In the second half of 2024, hiring slowed due to a combination of economic uncertainty, rising interest rates, and ongoing inflation concerns, which made companies more cautious. Many organizations, especially in tech, were still adjusting to post-pandemic realities and, in some cases, were conducting layoffs or halting hiring to right-size operations,” according to BambooHR. “Rising costs and labor market mismatches also contributed to the slowdown, as businesses faced higher expenses and struggled to find candidates with the right skill sets. Overall, companies adopted a more cautious approach to hiring while awaiting clearer economic conditions.”
Key takeaways:
- Companies with mostly tenured employees (3-plus years average tenure) were 3% happier on average compared to companies with a majority of newer employees (<3 years tenure). Additionally, companies with more than 150 employees continued to see a boost in eNPS.
- The construction industry dropped in Q4, atypical of this quarter and industry.
- The finance sector dropped to a new five-year low.
- The technology space dropped from Q3, a similar trend that occurred in 2023’s Q4.
- Restaurant and food and beverage experienced a new five-year low, ending 2024 at the lowest point since pre-pandemic.