This year The World Happiness Report (WHR) focused its findings on the COVID-19
pandemic. The results were both startling yet unsurprising. By measuring
the weekly happiness of 2,000+ people every week, they found that when
COVID hit in March 2020:
- It caused a 30% drop in employees’ weekly
- It took 13 weeks for scores to get near pre-pandemic levels, but they
were still 10% lower
- It sent scores down by a further 20% in the second wave.
This feels validating or at least familiar. However, when we measure the
weekly data from our Friday Pulse clients against the WHR, we see a stark
contrast. Companies that put wellbeing front and centre bounced back
to pre-pandemic levels in just three weeks. They didn’t experience a
second dip and ended the year with happiness scores 20% higher. In
short, they’ve navigated a stronger way through the pandemic.
COVID-19 has been a massive setback for every business everywhere. Over
the last year, we’ve been tracking how companies with a wellbeing focus
have been doing, periodically publishing articles with updates. Despite
our best efforts, we were only able to make educated guesses at how well
(or poorly) companies were faring. With the WHR, we now have a benchmark
and can finally see how a focus on wellbeing can make a real difference.
In essence, companies that look after their people are
doing significantly better than their peers. While they faced the same
challenges, they displayed more resilience. Specifically, they bounced
back 4x quicker from the first wave and completely avoided the second.
The World Happiness Report Findings
Throughout 2020 the UK polling company YouGov have been asking a
representative sample of 2,000 people how they have felt each week –
what they call tracking the “mood of the nation”. Like everyone else
they didn’t know a global pandemic was about to hit but, graphically,
their data shows how it has impacted people.
COVID-19 dramatically affected the happiness levels of workers. The
first wave of COVID in March 2020 resulted in a huge dip in weekly
happiness. Undoubtedly, this was due to high levels of anxiety over
COVID coupled with the sudden disruptions to how we work. There was then
a slow, 13-week recovery back towards near pre-pandemic levels of worker
happiness with a second fall as restrictions continued.
same timeline with Friday Pulse weekly happiness data, our clients
- An 18% drop in their weekly happiness scores in March 2020, compared
to a 30% drop reported by the WHR for white-collar workers
- A return to 90% of pre-pandemic happiness levels in just 3 weeks,
compared to 13 weeks
- End of year employee happiness levels were 20% higher with 47 weeks at
(or above) 90% of their pre-pandemic happiness levels, compared to 20
weeks reported by the WHR.
This is resilience-in-action, showing both bounce-back and absorption.
The second wave of lockdown proved particularly revealing. While the
rest of the UK’s white-collar population experienced a steady decline in
their happiness scores, our group of wellbeing-focused companies
displayed remarkable resilience by maintaining their happiness levels.
Dr Jan Emmanuel De Neve, one of the writers of the WHR and director of
the Wellbeing Research Centre at Oxford University, said, “‘What gets
measured gets done.’ Companies that care enough about the wellbeing of
their employees to be pulsing it regularly had their staff cope much
better with the fallout of the pandemic. Even putting aside the direct
links between employee wellbeing and performance, COVID revealed which
companies were better than others at helping their employees navigate
the difficulties of the pandemic. They were the ones best at relieving
What does it all mean?
Companies that focus on wellbeing and track happiness scores did
experience a major setback when the pandemic first hit and their scores
over the whole year were significantly 6% lower than the previous year.
However, the YouGov data shows they have fared much better than the
general population of white-collar workers whose scores were on average
16% lower over the whole year.
We estimate that this suppression of employee wellbeing across the whole working
population has resulted in a loss of productivity of approx. £3,000
($5,000) per employee. For a 200-person organization (roughly the
average size of a business in the UK & USA), this represents a loss of
over £600,000 ($1m) per year.
The group of wellbeing-focused businesses were not totally immune to the
pandemic, but our estimate puts their lost productivity at £1,200
($2,000) per employee over the year. In other words, businesses could
have saved further losses of £1,800 ($3,000) per employee.
When we take these numbers to the UK economy of 30million employees, a
wellbeing focus could have added £52billion to the UK economy. The US
workforce is 4x as large with about 120million workers meaning a
wellbeing focus there could have added approximately $360billion to the
A small investment in people’s wellbeing can drive significant financial
benefit and improve a nation’s productivity.
How do you invest in your people’s wellbeing?
It doesn’t have to be a big lavish party (that’s definitely out of the
question right now!) or investing in an office gym. It’s an effort of
time and focus, rather than money. Companies who monitor happiness
scores and support employee wellbeing can reap huge dividends (pandemic
Hold weekly team meetings to discuss what went well and didn’t go well in the previous
week. These meetings allow for team members to connect, despite remote
Discuss emotions and happiness data
Leaders need to listen to their people and make changes. These
discussions create an accepting environment of how everyone’s
experiences of the pandemic are unique, as much as they are similar.
Celebrate wins and express gratitude
By focusing on celebrations and expressing gratitude to team members
people focus on how far they’ve come and what they’ve accomplished,
rather than the difficult journey and its shortcomings.
Care for each other
Encourage teams to talk about how they can support each other. By doing
this, teams can learn from one another and create a culture of self-care.
Wellbeing-focused companies follow these strategies and track their
weekly happiness scores through the use of platforms like Friday
happiness data enables them to respond and adapt.
A pandemic is a marathon, not a sprint
Although the phrase “we’re all in this together” is true, how we all
come out of the pandemic will differ. The release of WHR’s data is
revealing and shows us the benefits of wellbeing. Companies could have
avoided a second COVID setback and recovered quicker.
While universal setbacks are unusual, it’s not unusual for a company to
face challenges. Friday Pulse has been able to help many companies
through COVID and other corporate setbacks. We’d love to help you and
% drop is compared to pre-pandemic levels.
order to make as fair a comparison as possible we have re-calibrated
both sets of data as a % of their pre-pandemic means. Note that in the
YouGov survey the pre-pandemic average was 51% of white-collar workers
responding that they were happy last week whereas in the group of Friday
Pulse clients 68% of their employees responded happy or very happy last
week. The questions are asked in different contexts so whilst it is
highly likely the employees in this group of organisations are happier
on a weekly basis, by only making a comparison to the pre-pandemic
averages we are making more modest claims and are on stronger ground
statistically to make the comparisons. As an indication of the scale of
these drops, they are of the order of 6-7 standard deviations below the
mean – the word “unprecedented” is entirely appropriate here.