As companies push employees back into the office, a troubling trend is emerging: employee morale is plummeting. This decline is particularly pronounced among Black workers, who are experiencing a significant drop in workplace well-being. A recent report from the Human Capital Development Lab at Johns Hopkins Carey Business School, in collaboration with Great Place to Work, sheds light on this pressing issue.
Understanding the decline in workplace well-being
The report reveals that workplace well-being peaked in 2020, during the height of the COVID-19 pandemic. However, since then, the annual survey, which encompasses over 1.5 million employees across more than 2,500 firms, indicates a steady decline in well-being. According to Fortune, this decline is not uniform; it varies significantly across different industries and demographics.
For instance, employees in the health care and retail/hospitality sectors reported the lowest well-being scores. Furthermore, the data shows that Black, female and younger workers consistently scored lower in well-being compared to their White, male and older counterparts. Interestingly, employees in the Southern United States reported higher well-being scores than those in other regions.
The importance of workplace well-being
Michelle Barton, Ph.D., an associate professor of practice at Carey and co-author of the report, emphasizes the importance of integrating well-being practices into everyday work life, rather than treating them as a temporary crisis response.
The researchers assessed workplace well-being using five key criteria: financial health, meaningful connections, mental and emotional support, personal support and sense of purpose. Companies that actively invest in their employees’ well-being — both financially and emotionally — tend to receive higher scores in these areas.
Gender and racial disparities in workplace well-being
Gender disparities are also evident in the report. Male employees reported higher workplace well-being scores than female employees, a trend that reflects the widening gender pay gap, which increased in 2023 for the first time since 2020. Alarmingly, Black workers reported the lowest well-being scores from 2021 to 2023, while White workers consistently held the top spot. Asian employees were the only demographic whose well-being scores matched or exceeded those of White workers during this five-year period.
Among these disparities, Black women faced the most significant challenges, reporting the lowest well-being scores compared to their Asian male counterparts, who had the highest scores. This stark contrast underscores the urgent need for organizations to prioritize equity, inclusion and belonging for all employees.
The role of flexible work arrangements
One of the most critical findings of the report is the positive correlation between flexible work arrangements and improved employee well-being. Companies that allow 75% or more of their employees to work remotely part-time reported the highest well-being scores. In contrast, organizations where fewer than 25% of employees had remote work options recorded the lowest scores.
“For workers, flexibility provides the means to effectively manage work-life balance, addressing personal and family needs such as child care and elder care,” the report explains. “For employers, it may cultivate higher levels of engagement and productivity among employees while fostering a climate of well-being.”
A call to action
The findings of this report serve as a wake-up call for organizations to reassess their workplace policies and practices. As the workforce continues to navigate the complexities of returning to the office, it is imperative that employers prioritize the well-being of all employees, particularly those from marginalized groups. By fostering a culture of flexibility and inclusivity, companies can not only enhance employee morale but also drive productivity and engagement in the long run.
