Report reveals that pursuit of happiness is key to economic success

The much-anticipated Global Workplace Report 2024, powered by WorkL, unveils that working from home boosts confidence in management, that workers are worrying about the commute and that women are more than twice as likely to demand flexibility than men.

The in-depth look at the state of the global workplace, presents a comprehensive global analysis of employee happiness and the critical factors influencing it. Compiled from WorkL’s database, the report includes data from over 400,000 individual entries globally from over 100,000 organisations between 1st January- 30th September 2024, all sourced from the free WorkL Happy at Work Test.

Key headlines from the report include the problem with worklessness and that management continues to be a key issue that determines the happiness and engagement of people at work. The report also outlines how young people in the workplace have a low confidence in management.

The report, drawing on concepts from the new business book, Happy Economics, authored by WorkL founder Lord Mark Price, emphasises how happiness is not just a feel-good metric but a powerful driver of economic success for an organisation. By outlining why workplace happiness directly impacts company performance and employee productivity, the report serves as a guide for employers to harness happiness as a business strategy.

Lord Mark Price, left, Founder of WorkL and WorkL for Business comments on the report’s findings: “This year’s data reflects a growing workforce demand for better pay, flexibility, mental health support, and career development. These findings suggest that employers must adapt to shifting priorities in order to stay competitive and retain talent in a dynamic global market. Workplace happiness is essential for economic success and productivity. Companies that prioritise employee wellbeing and engagement not only see a stronger bottom line but also build a workforce that’s motivated, loyal, and better equipped to face future challenges.”

Key Findings from the Global Workplace Report 2024

The report highlights several key trends across sectors, demographics, and seven key regions WorkL operates within; UK, Ireland, US, South Africa, the UAE, Australia and the Philippines.

UK’s Productivity Problem and ‘Worklessness

The report highlights a pressing issue within the UK workforce; rising levels of ‘worklessness’ and low productivity, attributed to inadequate worker health and satisfaction. Recent analysis reveals over 1,100 comments from UK workers on health and sick leave, with 18% advocating for more sick days or improved sick pay. These findings echo a recent IPPR report dubbing the UK “the sick man of Britain,” with health concerns seen as both a productivity issue and a wellbeing concern.

James Perry, Co-Founder & Co-Chair of COOK comments on this trend: “The central woe of the UK economy is a productivity problem, with an associated worklessness problem. If our country wants to turn this around it needs to change the value equation for workers. Very early in COOK’s journey, we made the decision that we would not see our colleagues as units of production who sold their time to us. We chose instead to see them as people, with lives and loves and families. People with hopes and concerns, who want to build a better future for themselves and their children. By putting our purpose (nourishing people and planet) at the heart of our business, we aligned the interests of our team with the interests of the business. When our colleagues come to work, they are doing two things. Yes, they have a job to do – we all understand that we need to thrive commercially if we are to pursue our purpose. To make that food amazing, to move those pallets accurately, serve that customer joyfully, pass that audit precisely. But everyone who comes to work at COOK also knows that they are a vital participant in a shared endeavour exploring how we can use our business as a force for good.”

Gen Z at Work

The workplace is being shaped more and more by younger generations entering the workforce. Generation Z employees are born between 1997 and 2012 and have been accused of a variety of things, from not having the skills to navigate the workplace to lacking ambition.

Jordan Schwarzenberger, Co-Founder of Arcade Media and Manager of Europe’s biggest YouTube group, The Sidemen comments on Gen Z in the workplace in the report: “Gen Z are needed, and this is becoming known: In less stuffy industries, Gen Z aren’t stigmatised upon entry, because they are NEEDED for evolution. Especially in media. That said, the shift in how young people manage corporate culture is a big step change for millennials and Gen X. Pub on Thursday? Gone. After work socials? Can’t afford it. Things have shifted big time and it will take a second for the older guard to catch on.

Gen Z are exceptional when they’re great, and terrible when they’re not: In other words there is a greater divide between the good and the bad amongst this generation in my experience. Primarily down to attitude. Because of the apathy this generation largely has in life due to macro socio-economic factors beyond their control, a solid attitude is hard to come by. But when you find them, they’re superstars. I’ve seen this over the years time and time again. They either have the desire to smash it, and do, or they have little energy and clock out as quick as they clock in.”

The Commute

The commute is a big deal for employees, including this in the answer to the question ‘what three things would make your working life easier?’.  Almost 3,000 respondents in 2024 asked for increased opportunities to work from home and argued for a reduction in travel time in order to support a better work/life balance. The report has highlighted that people are requesting company cars and travel subsidies and these requests are linked to pay and making money go further.  Those working in the Health and Social Care Sector accounted for the majority with 17% of mentions relating to travel.

Technology Sector Leads in Happiness, While Retail and Hospitality Struggle

The Technology sector (78%) remains at the top of the happiness rankings for another consecutive year, a trend attributed to its adaptive workplace practices and focus on innovation. This score is five percentage points above the global average score of 73%.

However, Retail (68%) and Hospitality (71%) sectors continue to score poorly, ranking near the bottom globally. This disparity underscores a critical need for sectors with lower happiness scores to reassess work conditions, flexibility, and support for mental health.

The Hospitality sector was hit hard by the pandemic and seems to have not recovered this year, scoring this year in the bottom five. The sector’s difficulties in recruitment have been felt across the sector, most notably Yotam Ottolenghi, the chef and restaurateur slashed the opening hours at some of his London restaurants last year, citing an inability to recruit enough staff  As of June this year, according to the Office for National Statistics (ONS), the hospitality industry was scrambling to fill more than 100,000 vacancies, which account for more than 10% of all unfilled roles in the UK.

Luke Holder, Chef Director at HH&Co, Lime Wood comments within the report; “Kitchen culture is something I am very passionate about and, as a team, we have worked hard to move away from the work hard, play hard culture often so ingrained in the industry. What we have created at Lime Wood is an environment of care, consideration and patience, allowing the space for people to make mistakes. We work a two-team system working 3 ½ days per week and no one works a full weekend, so each team follows the same shift pattern front and back of house, meaning better consideration for individuals. This pattern changes every three months so people can plan their lives – I cannot emphasise how much of a difference this has made. I plan holidays and rotas out with plenty of lead time which means everyone feels their lives are more balanced and settled.”

Pandemic’s Lasting Influence on Workplace Dynamics

Whilst the effects of the COVID-19 pandemic are becoming a distant memory for many, its impact on how and where people work remains profound. The report notes a marked shift toward remote and hybrid work arrangements, with flexibility emerging as a crucial factor in workplace happiness. Notably, women are more likely than men (64% vs. 36%) to cite flexibility as essential to their job satisfaction, with high demand for flexibility within the Health and Social Care sectors.

Work Flexibility

Over 4,000 respondents commented in 2024 that flexibility would improve their working lives. While often related to working hours, flexibility means many different things to different people, and while the largest volume of respondents did not offer specifics in terms of what flexibility means for them, there are some clear themes from those that did.

Working hours is the most common standout theme, accounting for 20% of respondents who mentioned flexibility. Health and Social Care, Retail and Financial Services account for the largest proportion.

Working from home/Hybrid working is the second most common theme within flexibility (15%), with respondents seeking more opportunities to work away from the office (not necessarily just from home), especially when things outside of work are impacting factors (childcare, car troubles, awaiting parcels etc) and this is most common in the Financial Services and Technology sectors.

The percentage of those seeking more flexibility in general increases with age before beginning to decline again at 65+. This is most likely due to caring responsibilities increasing with age and then dropping off as children fly the nest.

The Role of Pay and Cost-of-Living in Workplace Happiness

Although the focus on pay in WorkL’s 2023 report was largely influenced by the global cost-of-living crisis, 2024 continues to see a strong correlation between fair pay and employee satisfaction. The Philippines leads in pay satisfaction (79%), while New Zealand scores lowest (66%). In the UK, the “engagement and pay satisfaction gap” is notable, with employees rating their happiness at 70%, but their pay satisfaction at only 66%. This suggests compensation is an area in need of attention, as fair pay remains a top contributor to workplace happiness and retention.

The Rising Importance of Mental Health and Purpose at Work

Mental health has surfaced as a pivotal area of concern, especially among younger employees (ages 25-34), nearly half of whom identified mental health as a top priority. The report calls for employers to take proactive measures in supporting employee wellbeing.

The Return to Office Debate and the Value of Flexibility

As companies like Amazon call for full-time office returns, the report finds that the physical workspace and commute are playing increasingly significant roles in employee happiness. Remote and hybrid work arrangements have doubled in popularity since 2019, highlighting the evolution of workplace expectations. The 2024 report delves into the four-day work week, an innovation being piloted in several countries, exploring its potential impact on different sectors and the challenges of implementation.