Tag: statistics

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Workplace Productivity Statistics and Trends You Need to Know

Woz working at a cash register

Summary

  • Productivity in the US increased in the past year, which can indicate that businesses are adapting to disruptions following the largest decline experienced in 2022.

  • Employee engagement goes hand-in-hand with workplace productivity. Low engagement levels are expected to cost US$8.9 trillion or 9% of the global GDP.

  • All-in-one payroll, HR, and workforce management software can help boost productivity through features like labor forecasting and communication platforms.

Productivity is a key measure of efficiency in any organization, but how it’s defined and measured varies widely. For hourly teams, productivity is often measured in real-time, like how efficiently shifts are managed, how well teams keep up with demand, and how businesses balance labor costs with performance. 

Understanding the direction of workplace productivity is essential, especially as wages rise, new technologies emerge, and workforce expectations evolve. Trends in efficiency, labor costs, employee engagement, and automation have a direct impact on hourly teams. Staying informed about the latest developments in these areas helps businesses stay ahead and adapt to changing workforce dynamics. 

Let’s take a look at how productivity is evolving on a national scale and what organizations can do to keep pace with these changes.

Productivity rates and its impact on quality of life

Generally speaking, productivity has seen some peaks and valleys over the years. And it has a direct correlation with quality of life. 

During a TED talk, Yves Morieux, managing director and senior partner at Boston Consulting Group, explained how a 3% increase in productivity per year leads to a doubling of the standard of living for every subsequent generation. If that growth is reduced to 1%, it will take three generations to double the standard of living – leading to every generation being less well-off than their parents. Sound familiar? 

“They will have less of everything: smaller roofs, or perhaps no roof at all, less access to education, to vitamins, to antibiotics, to vaccination – to everything. Think of all the problems that we’re facing at the moment. Chances are that they are rooted in the productivity crisis,” shares Yves Morieux.

In 2022, the Bureau of Labor Statistics (BLS) reported the sharpest decline in productivity since 1947. Nonfarm productivity landed at 7.5% in the first quarter of 2022, the lowest since the third quarter of 1947. This reflects pandemic-related disruptions, supply chain issues, and labor shortages.

The BLS defines labor productivity (or output per hour) as the division of “an index of real output by an index of hours worked.” They calculate the productivity of “all persons.” This includes employees, business owners, and unpaid family workers.

However, productivity has since recovered, and the BLS saw a 1.2% increase in labor productivity in nonfarm sectors. Productivity growth can indicate that businesses have adapted to automation, training, and better labor allocation. 

Information from the BLS reflects economic trends, which can indicate changes in the labor market, wages, and overall productivity. It’s vital to stay abreast of these broader numbers and assess them with your own internal data so you can make better decisions and strategies for your team.

Hourly wage trends and impact on business costs

Hourly compensation continued to rise in the fourth quarter of 2024, with BLS reporting a 4.2% growth. Labor unit costs also grew by 3%.

Additionally, minimum wage increases took effect in over 20 states in 2025. Some states and cities implemented higher minimum wages at the start of the year, while others are scheduled to have increases later in the year.

As wages rise, businesses may face higher operational costs, which can lead to price adjustments for products and services. Labor forecasting becomes even more essential as employers balance staffing levels to maintain productivity without the risks of over- or understaffing.

Automation is also vital, especially for managers, in optimizing workforce management. Tools like time and attendance tracking, employee scheduling, performance management platforms, and payroll software can eliminate administrative burdens, allowing managers to focus on running a productive operation. With the right technology, managers can spend less time on routine tasks and more time analyzing data and making informed decisions to improve productivity.

Disengaged employees can cause lower productivity

Gallup’s State of the Global Workplace 2024 report shows that 62% of workers surveyed are disengaged, and low engagement is estimated to cost the global economy US$8.9 trillion or 9% of the global GDP.

The study also examined daily stress, finding that 41% of respondents experienced stress the previous day. While it’s important to note that the survey didn’t directly ask if the stress was experienced at work, consider that time spent in the workplace is also a significant factor in daily experiences and emotions.

Employee engagement is strongly linked to better business outcomes and employee retention. The study’s findings reiterate just how crucial it is for human resources professionals to prioritize employees’ mental health and maintain a good work environment to retain top talent, achieve higher productivity, and maintain healthier profits.

Automation and AI in hourly workforces

The adoption of AI and automation will continue in HR, and they’re expected to still play a major role in streamlining administrative processes such as hiring, onboarding, time tracking, labor forecasting, and payroll processing.

Also read: HR Trends for Hourly Workforces in 2025

However, while AI is often associated with productivity gains, its impact is not always straightforward. A study found that 77% of workers using AI disclosed that it added to their workload, presenting unexpected challenges in achieving the efficiency improvements employers anticipate. Furthermore, 47% of employees using AI admitted they were unsure how to meet their employers’ productivity expectations despite the technology’s implementation. 

Clearly, technology is only as effective as its implementation. While AI has the potential to drive efficiency and profitability, its success depends on how well it integrates into workflows and supports employees rather than burdening them. Leadership plays a crucial role in ensuring AI adoption leads to practical, measurable improvements rather than becoming a source of frustration or inefficiency. Business leaders that introduce AI without a clear, well-structured strategy risk making work more complicated, which can result in lost productivity.

AI adoption should go beyond industry trends and buzzwords. It should be a strategic investment that delivers tangible benefits for both businesses and their employees.

Flexibility and job satisfaction beyond remote employees

For office workers, flexibility and work-life balance is typically to remote work or hybrid work arrangements, where they have greater control over their schedules and can work from home. However, for hourly teams, flexibility takes on a different meaning—one that is just as critical to job satisfaction and overall employee experience.

For hourly employees, flexibility isn’t about location but about having clear work hours in advance. Since their roles typically require them to be on-site, knowing their schedules ahead of time allows them to plan for personal commitments, reduce stress, and maintain a healthier work-life balance. This level of predictability on their work times keeps employees engaged, while minimizing issues like absenteeism and productivity losses.

If you’re managing an hourly workforce, ensuring employees receive their schedules well in advance is one of the most effective ways to enhance job satisfaction, improve employee experience, and maintain a more reliable and efficient team.

Potential shifts with workweek structures

There’s a current push for a 32-hour workweek, and its potential benefits for salaried, white-collar workers are clear. Many can complete the same amount of work in a shorter period. But what about businesses that rely on non-exempt, hourly employees? 

For hourly workers, wages are directly tied to time worked, meaning a reduction from a 40-hour to a 32-hour schedule could significantly impact take-home pay unless accompanied by an increase in hourly wages. For businesses, especially those operating 24/7, transitioning to a shorter workweek presents operational challenges, from scheduling to maintaining productivity levels.

While it is still not in effect, businesses should monitor developments closely and consider how changes could affect operations and employee compensation.

Boost productivity with Workforce.com

Frontline teams looking to boost productivity turn to Workforce.com for solutions like scheduling, labor forecasting, employee communications, recruitment, performance management, and payroll. Having all of these functionalities housed in a single, powerful system helps simplify work models and drive better results. Here are some of the ways Workforce.com can help you do exactly that:

Automating administrative processes

Cut time spent filling shift schedules with Workforce.com’s scheduling system. Instead of manually building schedules with spreadsheets, managers can create and populate shifts in minutes and ensure employees only do work they are qualified for. This helps prevent burnout among your team and safeguards employee well-being.

Managers can also automatically approve and amend timesheets in bulk with Workforce.com’s time and attendance software. Once timesheets are finalized and approved, they can be exported to payroll, where wages, overtime, deductions, withholdings, and incentives are calculated automatically, ensuring accurate and timely pay for employees. 

By eliminating manual processes, businesses can significantly reduce administrative workload, allowing teams to focus on higher-value activities to increase revenue and improve employee experience.

Optimize Scheduling with AI-Powered Labor Forecasting

Workforce.com’s labor forecasting system employs AI to predict staffing needs based on historical sales, economic trends, booked appointments, ongoing events, weather, and practically any metric that’s relevant to your operations.

Webinar: How to Forecast Your Schedule

With data-driven insights, you can determine exactly how many staff you need, where they need to be, and when they need to be there, all while avoiding the unnecessary costs of over or understaffing.

Improve team communication

Better communication leads to higher employee engagement and productivity. Workforce.com’s employee app fosters more open and transparent processes across your company.

Management and human resources can inform their team of upcoming shifts, scheduling conflicts, and shift changes instantly and across the board. While scheduling, managers can add important notes and reminders to shifts for specific employees. Important announcements can also be sent out by team or location.

Optimize manager duties

Workforce.com empowers managers with real-time insights into frontline operations. With time and attendance software, managers are instantly alerted when employees are running late or absent, approaching overtime, or missing scheduled breaks. In addition, managers can also offer up vacant shifts to qualified and available staff in case of no-shows or last-minute absences.

Workforce.com facilitates two-way shift feedback with staff members. Management can provide staff members with feedback on their performance per shift, and staff can also provide management with on-the-ground insights through feedback on staffing levels, communication, and teamwork. 

Workforce.com has a proven track record of improving work productivity and employee satisfaction in various industries worldwide. Check out these client success stories or book a demo today to see the platform in action. 

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7 employee & job satisfaction statistics & trends (2023)

Summary

  • Flexibility has become a vital component of employee satisfaction — More

  • Restaurant workers have a net promoter score of 14% — the lowest-scoring industry — More

  • LGBTQ+ employees rank their workplace experience 6% lower than non-LGBTQ+ workers — More

  • Executives reported a 1.3x higher overall job satisfaction than non-executive employees — More

  • Work atmosphere and career development potential are the biggest contributors to employee satisfaction — More

  • About half of US workers are “quiet quitters”— More

  • A company’s digitalization levels have significant, indirect effects on employee satisfaction — More

Tom Smith, co-founder of Partners in Leadership and three-time New York Times bestselling author, once said, “An attitude of accountability lies at the core of any effort to improve quality, satisfy customers, empower people, build teams, create new products, maximize effectiveness, and get results.”

That attitude of accountability is directly related to employee satisfaction. Harnessing job satisfaction should be a top priority for human resources professionals, but it’s become increasingly difficult since the pandemic.

Work is changing. As hybrid and remote work have become a priority for many workers, the Great Resignation rages on, and quiet quitting is a new workplace phenomenon.

In this article, we’ll share current employee satisfaction statistics and trends affecting today’s work environment. We’ll also provide tips on how utilizing technology like workforce management software can increase your team’s job satisfaction rate.

Satisfied employees mean higher levels of employee engagement and retention. Job satisfaction has a positive effect on people’s well-being, which, in turn, boosts productivity and innovation.

1. Flexibility from hybrid and remote work leads to higher levels of satisfaction

Flexibility is a key to job satisfaction. According to Future Forum, 80% of respondents said they wanted flexibility on where they work, and 94% cited flexibility on when they work as important.

Full-time, in-office workers reported lower scores relating to employee experience than their hybrid or remote colleagues. Only 21.6% of in-office workers said they were happy with their work environment, compared to 28.3% of hybrid workers and 35.4% of remote workers. Only 17.1% of in-office employees were satisfied with their work-life balance, compared to 25.1% of hybrid workers and 33.2% of remote workers.

According to research by UBS, 69% of workers are ready to leave their current jobs if they’re unable to work how they’d like — with more flexibility.

Creating flexible work environments can be particularly tricky for shift-based companies. By using a digital scheduling solution, this becomes simpler. Employees have greater control over their own schedules in a way that’s visible to their colleagues and management through dashboards and employee apps.

Shifts get covered quickly and easily, making it easier for employees to move things around when needed. It’s also easier to pick up additional shifts if they’re looking to earn some extra cash.

2. Restaurants and other labor-intensive industries are struggling with low employee satisfaction levels

Restaurants have the lowest net promoter score among employees at 14%, according to Statista. This was followed by the commerce industry (20%) and the public service sector (22%). In fact, resignation rates in leisure and hospitality were the highest recorded — 971,000 in August 2021.

A report by One Fair Wage shed some light on why restaurant work, in particular, exhibited low job satisfaction statistics and employee turnover rates. They found that 76% of restaurant workers were leaving their jobs because of low wages and tips.

Hostility and harassment were also factors behind restaurant employees wanting out. Thirty-nine percent of restaurant workers had concerns about hostility and harassment from customers and 26% from their coworkers and/or management.

Restaurant owners and HR staff should not take these figures lightly. There needs to be an open and constant dialogue with employees about working conditions and employee well-being. Schedule regular team and one-to-one meetings, and have anonymous feedback forms available in order to find out more about your employees’ concerns.

3. LGBTQ+ employees report lower employee job satisfaction than their colleagues

When asked to rate their companies, LGBTQ+ employees ranked their workplaces 6% lower than non-LGBTQ+ workers, according to Glassdoor. Transgender employees rated their employee experience the lowest at 3.43 out of 5.

The highest-rated industries for LGBTQ+ employees are real estate, IT, and legal. The lowest-rated industries are retail and wholesale, restaurants and food service, and personal consumer services.

According to Glassdoor data, these employees are less satisfied with their jobs due to burnout and discrimination. To ensure a safe and equitable environment, companies can provide ongoing DEI training and include zero-bullying policies in their employee handbooks.

4. There is an executive-employee disconnected when it comes to work experience

The executive-employee disconnect was observed by Future Forum in the fall of 2021. According to Future Forum’s 2022 data, executives continue to report higher scores related to employee experience compared to their non-executive teammates.

In the past year, executives reported a 1.3x higher overall satisfaction with their work environment than non-execs. Non-exec employees scored 1.5x lower than executives for work-related stress and anxiety.

Companies need to remove this disconnect and ensure non-exec employees are enjoying the same levels of satisfaction (if not more) as executives. This involves training managers to move away from being information gatekeepers and move toward being coaches who empower their teams.

Managers must be trained to give regular feedback and recognition. According to SHRM, 68% of human resources professionals feel that employee recognition activities contribute to increasing employee retention. Fifty-three percent of employees strongly feel their organization’s culture through being recognized or celebrated. 

Giving feedback through solutions like shift feedback tools helps to foster a company culture of feedback and appreciation. Managers provide staff with regular and standardized feedback in all areas of work via the app. This shows employees which areas they’re succeeding in and which require some improvement.

5. Work atmosphere and development possibilities are key to employee satisfaction

Research by Statista shows that a favorable work environment and opportunities for career development are the factors most connected to an employee’s satisfaction in the workplace. Other important factors the study found include diversity and the company’s image. Surprisingly, salary and compensation only ranked fourth.

Workforce management software has an important role to play in creating a positive work atmosphere and helping employees be better prepared for further career advancement. Employee self-service (ESS) through the use of technology means that team members are empowered to handle more tasks related to HR, IT, and other administrative needs they might have.

ESS makes employees feel more empowered due to increased accountability while lightening the administrative burden on other departments. These factors all contribute to a work atmosphere that’s centered on empowering employees and equipping them with better career development prospects.

Workforce.com’s Employee App is built on the concept of ESS, allowing employees to take more control of things like shift management and cross-departmental communications.

6. At least half of US employees are quiet quitting

Gallup estimates that 50%, if not more, of US workers are quiet quitters. Quiet quitting refers to how people are doing just enough to meet their job responsibilities and not get fired.

In the second quarter of 2022, they found that the ratio of engaged employees to actively disengaged employees currently stands at 1.8 to 1 — this is the lowest it has been in nearly a decade.

Gallup attributed quiet quitting to poor management, and they offered four tips on how to improve it:

  • Address manager engagement. Gallup found that, currently, only one in three managers are engaged at work. They recommend managers be trained to be better suited for new hybrid ways of working.
  • Managers need to speak with employees and find ways to reduce disengagement, minimize burnout, and prioritize mental health.
  • Managers should have at least one meaningful one-to-one conversation per week. These conversations could uncover the initiatives and changes management needs to make to create more satisfying work environments.
  • Managers need to create a sense of accountability among employees. Employees should see how their work affects the overall business goals. This is obtained by creating more transparency and including employees in conversations about individual goals and performance indicators.

7. Digitalization has an indirect but significant impact on satisfaction

In their research, Statista found that a company’s level of digitalization provides the greatest variety of employee satisfaction scores across industries. While digitalization itself was found to have a low impact on employee satisfaction, other important factors are influenced by digitalization — such as the need for good working equipment. Improving a company’s digitalization leads to improvements in other areas that are directly linked with satisfaction.

Digitalization makes it easier to adapt, which increases a company’s ability to remain stable and competitive in ever-changing environments. This means great job security for a company’s employees.

Satisfaction with digitalization was found to be lowest for employees with repetitive tasks. This shows an opportunity for workforce management solutions in shift-based industries that involve such tasks. Workforce.com is a great operations solution that promotes greater productivity through the optimization of frontline operations.

Workforce.com offers labor forecasting functionality that allows HR professionals to schedule based on demand. It uses historical data to accurately forecast future demand and help build the most effective schedules. This way, companies avoid understaffing and overstaffing, resulting in less stress and burnout among employees.

Boost your employee engagement strategy

Building a workplace culture that fosters employee engagement requires time, dedication, and a clear leadership mandate.

Download our ebook Boost Your Employee Engagement Strategy.

Learn more about how to implement and measure your strategies and how HR and senior leaders can work together and utilize technology to make this happen.

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8 Top Hospitality Trends & Statistics (2023)

Summary

  • The hospitality industry is growing at a steady rate. – More

  • Hospitality businesses face seven supply chain challenges. – More

  • Unemployment rates in the sector have decreased significantly. – More

  • Restaurant profit margins and revenue are increasing slightly. – More

  • Hotels saw record-high average daily rates and revenue per available room in 2022. – More

  • 853 million passengers flew with US airlines in 2022. – More

  • Leisure travel is a priority for most people. – More

  • The outlook for business travel is looking similar to 2019. – More

The hospitality industry is one of the fastest-growing industries in the US. With over 15 million people employed in various roles and sectors, this industry plays a critical role in driving economic growth and providing customers with unforgettable experiences. 

Hospitality covers a number of sectors, including the hotel industry, the travel industry (including business travel), and restaurants. For HR professionals and employers in the hospitality and tourism industry, staying informed about trends and statistics is crucial for making informed decisions that can positively impact their businesses. 

In this article, we will be presenting some insightful industry statistics and trends that will help you gain a better understanding of the current landscape of the sector.

The hospitality market continues to grow despite inflation

The hospitality industry, like practically any other sector, is experiencing a slow and steady recovery from the effects of the coronavirus pandemic. The market grew from $4,390.59 billion in 2022 to $4,699.57 billion in 2023, presenting a compound annual growth rate (CAGR) of 7.0%.

The Russia-Ukraine war has proven to be a hurdle for economic recovery as the conflict brought about sanctions across countries leading to inflation and supply chain disruptions. Despite this, hospitality sectors are expected to grow to $5,816.66 billion by 2027 at a CAGR of 5.5%.

The industry faces 7 supply chain challenges

Research by the AHLA and Avendra shows that there are seven market forces that have an impact on commodities and the supply chain:

  • Inflation – hospitality-related products will continue to see inflation rates between 5 and 10% for the next few quarters. This is more than twice the historical average.
  • Tight labor market – while the unemployment rate might be improving in the hospitality sector, other industries that it relies on, such as manufacturing and the retail trade, are still dealing with labor shortages. They have had to increase wages to retain workers, and this cost will be reflected in the cost of the goods and services they provide to the industry. 
  • Product availability – manufacturers and producers are rationing their products to catch up to their demand backlog. To avoid delays, hospitality businesses need to communicate well in advance with distributors. 
  • High product demand – has contributed to increases in the price of energy and items like seafood, beef, cooking oil, coffee, and to-go packaging. 
  • Russia-Ukraine war – has had an impact on inflation. 
  • Energy prices – Oil and energy prices are volatile due to supply constraints and the possibility of a recession.  
  • Transportation challenges and lead times – we are seeing high levels of US national average freight rates. Ocean and freight rates are decreasing but are still higher than pre-pandemic levels. Lead times on equipment and textiles are longer due to delays in the Asia-Pacific region.  

Leisure & hospitality unemployment rates have reduced drastically

According to data from the US Bureau of Labor Statistics (BLS), the average annual unemployment rate in the leisure and hospitality industry in 2022 was 5.8%. This represents a 43% drop from the previous year and the third lowest in 10 years. 

The lowest rates were recorded in 2018 and 2019 at 5.7% and 5.2%, respectively. The COVID-19 pandemic saw unemployment rates skyrocket to 19.4% in 2020, largely due to the mandatory closures of many hospitality businesses. Last year’s decrease means that the industry’s unemployment rate has reached pre-pandemic levels, which is particularly impressive considering the country was also going through labor shortages and the Great Resignation. 

Restaurant profit margins and revenue have increased slightly since the pandemic

In the past year, restaurants experienced increases in both profit and revenue since the pandemic. 

Food service establishments reported an average revenue of $1.5 million in 2022 – a 7.4% increase from the year before. This increase was not felt across the board. Restaurants with over 80 seats were more likely to experience a revenue increase. A number of restaurants with smaller capacities actually experienced a decrease in revenue compared to 2021. 

Average profit margins were at 10% in 2021 and saw a slight increase in 2022 to 10.6%. Once more, higher-capacity restaurants were more likely to see an increase in profits. Establishments of 120 seats or more reported profit margins as high as 13%.

The food service industry is reported to see continued growth in 2023. The National Restaurant Association forecasts $997 billion in restaurant industry sales in 2023. This is partly due to higher menu prices. 

Hotel industry rates and revenue are reaching new heights

According to hotel industry statistics by STR, 2022 saw record-high average daily rates (ADR is the average paid for hotel rooms in a specific period) and revenue per available room (RevPAR). In 2022, ADR was up 13.6% from the pre-pandemic levels (2019) and reached $148.83. 

RevPAR is a crucial KPI for most hoteliers and owners in the hotel market. It is calculated by multiplying a hotel’s ADR by its occupancy rate (the ratio of rooms rented to the total available rooms). In 2022, the industry’s revPAR was $93.27, 8.1% higher than in 2019. 

Hotel occupancy rates, on the other hand, were still 4.9% lower than pre-pandemic levels at 62.7%. 

The report showed that hotel bookings and overall industry growth were not linear or even. The occupancy rate varied greatly depending on the month and season. In January 2022, the rate was 12 to 14% lower than 2019 levels, while less than 1% lower in October. 

Watch: The 2023 Hotel Industry Outlook with AHLA President & CEO

US airlines carried 853 million passengers in 2022 

The airline industry is on the road to recovery as domestic and global travel continues to increase, but air travel has yet to reach pre-pandemic levels. 

In 2019, US airlines carried a record-breaking 928 million passengers right before the onset of the pandemic. Travel restrictions brought these numbers down to just 3 million in April 2020.  

In 2022, US airlines carried 853 million passengers, a 30% year-to-year increase from 2021 and 8% lower than the record-breaking 2019 numbers. Of these, domestic travel accounted for 751 million passengers, and international travel accounted for 102 million. 

Most people are prioritizing and planning leisure travel this year

According to the American Express 2023 Global Travel Trends Report, the appetite for travel and tourism is alive and well. Eighty-five percent of respondents indicated that they plan on taking at least two leisure trips in 2023. Seventy-eight percent stated that they consider leisure travel as an “important budget priority.”

The research uncovered four major trends in travel tourism:

  1. Tourists want to discover hidden gems and “lesser-known destinations” while also supporting local communities.
  2. Travelers are looking toward pop culture when making decisions on where to travel and why. 
  3. Food is an integral part of the travel experience. 
  4. Restorative vacations are increasing in popularity, where travelers prioritize mental and physical self-care. 

These trends were found to be particularly prevalent among Gen Z and millennial respondents. 

Business travel is nearly back to “normal”

In a survey of 100 global corporate travel managers, Morgan Stanley found that business travel has bounced back from the COVID-19 disruptions. Many respondents believe that business travel budgets and expenditures are either back to pre-pandemic levels or, at least, very close. This is despite the fact that the costs of airfare and lodging are higher than pre-pandemic levels. 

Furthermore, there is an expectation that travel budgets in 2023 will be anywhere between 6% to 10% higher than 2019 levels. Corporate airfare budgets, for example, are expected to be 9% higher.

Three other trends affecting the business travel industry are:

  1. Global hotel room rates are expected to rise by an average of 8%. 
  2. In an attempt to cut costs, travel managers are looking for cheaper alternatives to upscale hotel brands for business trips. Thirty-one percent of respondents are disregarding hotels altogether and opting for short-term rentals instead. 
  3. Virtual meetings are still considered alternatives to business trips. It is expected that nearly 18% of business travel will be replaced with virtual meetings. The digitalization of business trips is not just a cost-cutting measure. Sustainability is also a driving factor as companies are looking to be more eco-friendly.  

Simplify & streamline hospitality operations with Workforce.com

The hospitality industry shows promising signs of recovery after what has been a turbulent few years. It has never been more important for businesses, from neighborhood restaurants to hotel chains, to find ways to improve labor efficiency and maximize profits. 

Our workforce management software for hospitality helps you simplify hospitality employee scheduling, improve communication, and optimize labor costs.

To find out more, get in touch with our team today.

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5 Surprising Lunch Break Statistics in the US (2023)

Summary

  • Research shows how taking lunch breaks enhances employee engagement and productivity. Despite this, lunch breaks are getting shorter and many employees fear being judged for taking them. 

  • While there is no federal law stating that companies should offer breaks, many states have implemented their own. 

  • Employers should properly schedule and track compliant lunch breaks to avoid lawsuits and improve workplace culture. 

What do lunch breaks look like in your office? Are your employees “desktop diners,” eating their packed lunches in front of their screens (most likely scrolling through social media) before getting on with their workday? Do they venture out in search of fresh air and some time away from their screens? Or has your company ended up with a workplace culture where employees skip break time altogether? 

There’s plenty of evidence showing that taking a proper lunch break in the middle of the day is vital for people’s well-being and maintaining a better work-life balance. Employees who take their lunch breaks have been found to have higher levels of job satisfaction and productivity and are less likely to suffer from burnout. 

Whitepaper: How to Reduce Burnout of Hourly Employees

Here are five statistics we’ve collected that should give you a clearer picture of the state of the American lunch hour. With these findings in mind, we have prepared some tips on how your human resources team can implement break policies and create a work environment that does lunchtime right.

1. Employees who take their lunch break are more engaged

In late 2017, Tork carried out a survey amongst 1,600 North American employees throughout the United States and Canada. The Take Back the Lunch Break survey findings show that North American workers who take their lunch break show higher levels of engagement than those who didn’t.

The respondents who took their lunch break scored higher with metrics that are normally linked to engagement: job satisfaction, the likelihood to stay with their current company, and the chances that they would recommend their company as a good place to work. Ninety-four percent said that they feel happier when they take their lunch break.

Another study found that 39% of employees who regularly took their lunch breaks reported having a better work-life balance. 

2. Taking lunch breaks boosts productivity

Research also shows that work performance and productivity increase when employees take their lunch breaks during work hours.

Tork’s Take Back the Lunch Break uncovered some interesting stats on this. They found that:

  • 94% of respondents said that stepping away from a task they’re working on helps them to get a fresh perspective on it.
  • 91% of employees and 93% of bosses surveyed agreed that taking a break helps them maintain mental focus.
  • 88% of employees and 91% of bosses said that they feel refreshed and reenergized after taking a break.

The World Health Organization (WHO) has found that work environments that increase employee anxiety and depression cost the global economy an astounding $1 trillion per year. ezCater’s The Lunch Report study uncovered links between lunch breaks and mental health:

  • 40% of employees said taking a lunch break reduces stress.
  • 39% felt more productive after a break.
  • 37% reported feeling less burnt out when they regularly took time to rest. 

3. Younger employees fear being judged for taking their breaks

Findings from The Lunch Report also show that a quarter of Gen Z workers hesitate to take their lunch break because they worry about what their bosses might think.

Another reason Gen Z and millennial workers cited for skipping their lunch break is that they feel they have too much work to do: 

  • 21% said they don’t have enough time for a proper break.
  • 1 in 5 don’t take breaks so that they can finish work ASAP.
  • 19% said that they have too many meetings or tend to have meetings during lunch hour.

4. Lunch breaks are getting shorter

A study from 2018 found that the average lunch break is getting shorter as we move further away from the concept of the “lunch hour.” The average break in 2018 was 39 minutes; this was down from 43 minutes in 2014. 

The study found differences in lunch break lengths across the country. Workers in Salt Lake City, De Moines, and Cincinnati take the shortest breaks, while those in San Francisco, Los Angeles, and Miami break the longest.

5. Some people don’t take their lunch breaks … and some do so at their desks

Tork’s 2022 study, as part of its continued Take Back The Lunch Break campaign, reveals how many employees are not taking any breaks multiple times a week — 39% of respondents said that they “occasionally, rarely or never take breaks.” The study found that 91% of people are working just as much or more than before the pandemic. Despite this, people are still not taking the breaks they need. 

The study also found that “women are over twice as likely (67%) not to take a break than men (33%).” Women who do remote work are more likely to spend the breaks they do take doing household chores than their male counterparts. 

The Lunch Report also found that 1 in 10 employees never break away from their desks, and 70% “eat while they work at least once a week.” They found that only 10% of Gen Z workers said that they never eat at their desks. In comparison, 26% of millennials and 48% of baby boomers said that they never dined at their desktops.

How employers can create a lunch break culture that fosters a happier workplace

As an employer or a People Ops professional, there are a number of ways you can ensure that your company culture is one that does lunch breaks in a way that is beneficial to your co-workers as well as your organization’s bottom line. 

Know the law

On a federal level, there are no laws that dictate whether or not you need to enforce lunch breaks in your workplace. When employers do offer breaks, federal law states that any breaks under 20 minutes need to be paid by the employer. Any breaks over the 30-minute mark are classified as off the clock.

Some states have implemented their own laws on lunch breaks in the workplace. In Kentucky, for example, companies need to offer their employees a meal break. This is a reasonable unpaid period (normally between 20 and 30 minutes) taken any time after the third and before the fifth hour of consecutive hours of work. Kentucky companies must also offer rest breaks of 10 minutes after every four hours of work. This time is paid. 

Management should set an example

Many workers still feel uncomfortable taking their breaks for fear of being judged by their superiors. This doesn’t help when many C-Suite executives and management personnel can often be seen skipping lunch breaks themselves or eating at their desks. 

A simple way to create a company culture of taking lunch breaks is for management to actually take their lunch breaks and do it visibility. In the case of remote teams, management can use things like “Out to lunch” statuses on Slack and by blocking parts of their daily calendars for lunch.

Actions like these give your employees “permission” to embrace their own lunch breaks and not feel like outliers when doing so. Tork’s study found that over 9 in 10 employees claim they are more likely to stay at a company where management actively encourages their teams to take their lunch breaks. 

Create or enhance your break room

Having a designated break room within your office is a great way to harness a healthy lunch break culture within your organization. If you do have a room you can utilize as a breakroom, or if you already have one, there are a number of things you can do to encourage your employees to actually make use of it:

  • Provide enough seating space for everyone.
  • Decorate the space to make it feel welcoming.
  • Make sure it is well-equipped with the appliances and storage space needed, e.g., fridge, microwave, and coffee-making facilities.
  • Encourage social interaction by leaving activity items such as cards and games.

Consider catered lunches

Some companies occasionally offer in-office catered lunch to their employees as an incentive. While this is an added expense, research shows that paying for your employees’ lunch from time to time can have a positive impact on morale and engagement. 

The Lunch Report found that 23% of respondents would return to the office full-time if catered lunches were made available for free, and 65% said that they would plan to work on-site more often if complimentary lunches were provided.

Manage your company’s lunch break culture more effectively with Workforce.com

Enhancing your lunch break culture is highly beneficial to your business, but it does add a layer of complexity to your scheduling. Workforce.com offers employee scheduling and time tracking solutions that help make your life easier and ensure you remain compliant with any state laws.

Workforce.com’s scheduling automatically populates shifts with compliant lunch and rest breaks according to local state law. Your employees can view all of this information right on their phones. The Time Clock App allows employees to easily clock out and back in for breaks, as breaks are tracked in real time.

With Workforce.com, your staff will take the breaks they need, and you will avoid unnecessary fines. To find out more about how Workforce.com can handle your scheduling needs, give us a call today. 

Or, for more information on how to improve your scheduling, check out our free webinar below:

Webinar: How to Optimize Your Staff Schedules