By Lord Mark Price, below, Founder of WorkL and author of Happy Economics
As we approach summer when business usually slow down as people take their annual leave, it’s a good time to reflect on what truly makes employees happy at work and, crucially, what’s holding them back, now that
At WorkL, our mission is to help individuals and organisations create happier workplaces. Through our extensive research and the Happy at Work Test, taken by over a million employees worldwide, we’ve uncovered the key factors driving workplace happiness. Three major themes stand out as both barriers and opportunities for employers; flexibility, career development, and the daily commute.
Flexibility: More Than Just Hybrid Work
Our latest data highlights that flexibility is one of the most requested changes that would improve employees’ working lives. While many equate flexibility with working from home, the reality is more nuanced. WorkL’s qualitative research reveals that flexibility means different things to different people, but there are clear themes:
- 20% of respondents linked flexibility to control over working hours, with the Health and Social Care, Retail, and Financial Services sectors having the highest demand.
- 15% of respondents specifically cited a need for more hybrid or remote work options—not necessarily just from home, but anywhere that suits their needs on a given day. This was particularly evident in the Financial Services and Technology sectors.
- The demand for flexibility increases with age before declining at 65+, likely due to evolving caring responsibilities.
For businesses, this presents a clear opportunity: understand what flexibility means to your workforce and tailor policies accordingly. Companies that embrace flexible working see higher engagement, productivity, and employee retention.
Career Development: The Missing Piece in Employee Engagement
One of the biggest concerns from our respondents is the lack of career progression. Our data shows that employees who don’t see a path for growth have a higher Flight Risk, meaning they are more likely to leave their organisation.
This should be a wake-up call for businesses. If employees feel stuck, they won’t stay. Investing in professional development, clear progression pathways, and mentoring programs is essential for fostering workplace happiness. When employees feel valued and see a future with their company, they work harder, stay longer, and contribute more.
The Commute: A Hidden Happiness Blocker
Finally, the daily commute remains a major issue for many employees. When asked, “What three things would make your working life easier?”, nearly 3,000 respondents cited the need for increased remote working opportunities and reduced travel time.
The message is clear: long and stressful commutes are hurting workplace happiness. Employers who take this into account—by offering hybrid work, staggered start times, or more localised office options—will gain an edge in attracting and retaining top talent.
Which Industries Are Getting Workplace Happiness Right?
Not all industries are struggling. WorkL’s happiness rankings show that the Technology sector leads the way with a 78% happiness score—five percentage points above the global average of 73%. Its success is largely due to innovative workplace practices and a strong emphasis on flexibility and development.
On the other hand, Retail (68%) and Hospitality (71%) continue to rank among the lowest, highlighting an urgent need for change in these sectors. Addressing issues around career growth, work-life balance, and support for mental health should be a priority for organisations looking to boost employee satisfaction.
The Future of Workplace Happiness
If there’s one takeaway from our latest research, it’s that happiness at work isn’t just a ‘nice to have’—it’s a necessity for business success. Companies that ignore the importance of flexibility, career progression, and work-life balance risk losing their best talent.
This International Day of Happiness, I urge businesses to reflect on what they can do to improve their employees’ experiences. Workplace happiness isn’t a mystery—it’s measurable, manageable, and, most importantly, essential for long-term success.
Let’s make happiness at work a priority, not an afterthought.