Flexibility continues to be a big driver for employee happiness in the workplace according to the Exploring Workplace Happiness in 2025 Mid-Year Report form WorkL, a global leader in employee engagement. The report offers a comprehensive snapshot of employee engagement trends across industries and territories at a time of accelerated AI inclusion within the workplace and growing political and economic changes worldwide.
Drawing on global employee data the report outlines what is truly driving happiness and retention at work, as well as illustrating the growing concern among UK employers about rising National Insurance Contributions (NICs). Client survey data from WorkL suggests a reluctance to fill vacancies under the current budget pressures.
Hybrid work and working from home is not going anywhere, despite a number of big organisations requesting employees back to the office five days a week.
Key Findings Include:
- Technology leads the way – The Technology sector tops the global and UK engagement rankings, scoring 80% and 84% respectively, with high confidence in leadership setting it apart from other industries.
- Flexibility fuels engagement- Remote and hybrid work continue to be closely tied to employee satisfaction, particularly in regions such as South Africa and the USA, where flexibility correlates strongly with higher engagement scores.
- Pay remains a top concern- In a global climate of inflation and rising living costs, compensation and financial benefits emerged as the most frequently cited area for improvement, highlighted by over 10,000 survey respondents.
- Regional and sector disparities- UK sectors like Retail and Hospitality continue to underperform compared to global counterparts, hindered by local economic pressures and regulatory changes. Young and non-management staff in these sectors face particularly low satisfaction levels.
- Frontline and disabled employees at risk- Disabled employees in the UK report below-benchmark confidence in management and a heightened risk of leaving. Frontline workers across industries also show reduced trust in leadership, contributing to elevated turnover.
Commenting on the report, Lord Mark Price, Founder of WorkL said this year’s data reveals that while industries face vastly different challenges, common threads remain – flexibility, fair pay, and strong leadership. “With economic pressures mounting and changes to National Insurance contributions influencing business hiring decisions, employers need to act decisively,” he said.
Reflecting upon the responses to the question: “What three changes would improve your workplace happiness?” several key themes emerged. The most frequently cited area was Pay and Financial Benefits, with over 10,000 individuals, underscoring the importance of fair and competitive compensation. Working Hours and Flexibility followed, with 5,597 individuals highlighting concerns around work-life balance, time off and flexible schedules.
Other prominent topics included Management and Leadership, Communication and Transparency (3,087 individuals) and Progression and Development (2,543 individuals). These findings reinforce that while the core drivers of workplace happiness are well known, they remain urgent and central to employee experience.
Download the Report here.
