American Employee Well-Being Hit A New Low In 2024

New research analyzes the state of the American workforce in 2024 and shows an overall decline in employee well-being compared to years prior.

This article was written by John Hopkins University and originally published by Futurity.

The analysis is a continuation of previous research based on an annual survey in the United States between 2019 and 2023, which revealed that companies backed off on supportive climates after the pandemic, leading to dips in workers’ wellness in their corporate lives after 2020.

The newest addition to this research, which examines 2,769 organizations and more than 1.3 million survey respondents, provides additional insights specific to US workers’ well-being in 2024.

The latest research confirms a decline in general employee well-being since 2020. In 2024, employees reported the lowest well-being scores on record, as opposed to 2020, when employees reported the highest well-being scores.

“In some cases, the lower scores represent a reduction in employee flexibility for either flexible hours or remote work,” the latest research states.

“In other cases, these scores could be related to challenges associated with greater economic shifts related to inflation or productivity needs.”

In prior years, well-being scores for managers and employees were comparable to one another, and during the pandemic, managers and top leaders often reported lower scores due to the extra burden of that time period. However, one of the most noteworthy shifts the current data shows is a rise in well-being scores for managers and senior leaders, while well-being for employees and individual contributors decreased in 2024.

Rick Smith, director of the Human Capital Development Lab at the Johns Hopkins Carey Business School and author of the study, says that the increase in well-being scores for managers could reflect the return to regular operating conditions since the pandemic, which may be indicative of the distance between leadership and workers.

“What we’re seeing is a growing gap between how leaders and their teams experience the workplace,” says Smith.

“Managers may feel a return to normalcy, but that doesn’t mean their employees do. Leaders must be cautious not to assume their own well-being reflects the broader workforce at their organization. The data shows a potential disconnect, and that’s a signal for action.”

The latest research also continued to show persistent well-being disparities across demographics. Female, African American, Hispanic, and younger employees all scored lower in well-being than colleagues who were male, white, Asian, and older, according to the 2024 data.

An interesting finding is that those under the age of 25 have experienced a steady decline of their workplace well-being since the pandemic, a trend consistent with other research findings that younger workers report lower levels of well-being at work than other age groups.

“The persistent disparities in well-being across demographic groups are concerning,” Smith adds. “Organizations must recognize that a one-size-fits-all approach to employee support isn’t viable and take a hard look at how their policies and practices are impacting different groups.”

Specific sectors that experienced notable drops in well-being scores in 2024 include professional services, information technology, health care, and education.

Companies with high levels of well-being reinforce what the survey and other research has shown for years: “Proactively addressing employee well-being makes good business sense,” the original report states. “Poor mental and physical health in a workforce can erode profits through higher turnover, decreased engagement, reduced customers service, and increased health care costs.”

“Fostering a positive organizational climate through initiatives focused on building trust, recognition, and supportive relationships not only benefits employee health and well-being but also contributes to improved work-related outcomes, aligning with humanistic management principles,” the latest report states. “Given the overall negative trend, the time for leaders to take action is now.”

The research—conducted in partnership with Great Place To Work—measured key dimensions for fostering corporate climates of well-being: mental and emotional support, sense of purpose, personal support, financial health, and meaningful connections. Such factors have been shown to contribute to positive employee well-being in relevant studies across more than 30 countries with over 5 million survey respondents.

“Every organization has its own challenges, but what our research makes clear is that effective leadership can make a difference,” says Smith.

“When leaders take intentional steps to shape a culture that supports well-being, we see meaningful improvements for employees.”

Source: Johns Hopkins University