Only half of British employees say they are frequently happy at work, according to new findings from Reward Gateway | Edenred’s Bridging the ROI Gap Report. 

The research, released as organisations prepare for a challenging 2026, paints a concerning picture of employee morale, appreciation and emotional wellbeing across the UK workforce. With happiness, productivity and retention more closely linked than ever, the report suggests many employers are failing to track the very metrics that could safeguard both their people and their performance.

The study reveals that just 51% of employees feel frequently happy in their jobs, while a quarter report they do not often feel appreciated. A similar proportion, 22%, say they do not often feel valued by their employer.

The sense of being overlooked intensifies significantly with age: more than a third of employees aged 55 and over say they often feel unappreciated, and 30% say they frequently feel unvalued. This suggests a growing disconnect between organisations and older workers, a group whose experience, stability and institutional knowledge are central to operational effectiveness and knowledge transfer.

These emotional trends carry real consequences for productivity. According to the research, 74% of employees feel more productive when they are supported by their organisation, yet only 58% of employers are currently tracking motivation and productivity in any structured way.

As businesses face ongoing cost pressures, skills shortages and shifting employee expectations, the failure to monitor these basic indicators of workforce health represents a significant blind spot. Without visibility into motivation levels or the early signals of disengagement, organisations risk a decline in morale that may not be identified until it has already impacted performance or attrition.

A key finding of the report is the lack of emphasis placed on emotional wellbeing within organisational measurement frameworks. While many HR teams track wellbeing or satisfaction in some form, only two-thirds of those who monitor support and wellbeing regularly measure how these metrics correlate with business outcomes.

When it comes to happiness specifically, the proportion drops further, with just over half of HR managers drawing clear links between employee happiness and organisational performance. This gap highlights an enduring cultural challenge: although wellbeing has been widely discussed for years, many organisations still have no systematic way to quantify its impact or integrate it into decision-making.

For Suzanna Kemal, Head of HR at Reward Gateway | Edenred, the findings signal a pivotal moment for employers. “The link between happiness and productivity is undeniable, and it’s essential that businesses and HR teams recognise this,” she says.

“With almost half of the UK workforce feeling generally unhappy in their place of work, the country is losing out on the creativity, determination and resilience found in a thriving workplace.” Kemal argues that the issue extends beyond happiness alone and urges organisations to take a broader approach to emotional wellbeing. “It’s not just happiness that needs to be tracked, but wellbeing overall.

Businesses need to take stock of absenteeism, performance and participation, as well as assess emotional capital metrics like happiness and enthusiasm through pulse surveys and one-to-one communications. Without taking these tangible measures, organisations will only fall behind and have their workforce move onto greener pastures without them.”

The research leaves demonstrates emotional wellbeing is a measurable driver of performance. 

As 2026 approaches, employers who continue to overlook how their people feel at work risk eroding trust, engagement and productivity at a time when stability is crucial. Those who invest in understanding and improving happiness, appreciation and support will not only strengthen the employee experience but position themselves for greater resilience in the year ahead.