Why joy at work is the most underrated performance driver in 2026

Workplace engagement has been under the microscope for years, but new research suggests organisations may be overlooking one of the most powerful drivers of performance: joy at work.

According to Reward Gateway | Edenred’s 2026 Workplace Engagement Index, joy is strongly linked to productivity, retention, and engagement — yet fewer than half of employees across Australia and New Zealand say they experience it regularly.

The third annual study, which surveyed more than 2,000 employees and business and HR decision makers across the region, found that only 41% of employees say they frequently feel joyful at work.

At the same time, employees clearly recognise its impact. Around nine out of ten say joy improves productivity, connection, retention, purpose and engagement, suggesting organisations may be underestimating the role emotional experience plays in workplace performance.

When joy is missing, engagement can quickly decline. Among employees who say they feel less engaged at work, 47% said lack of joy is a key driver of their disengagement — rising sharply to 76% among deskless employees.

The research also highlights how experiences of joy vary across different groups of employees. Gen Z employees report the highest levels of joy at work, with 46% saying they frequently feel it, compared with just 30% of Older Millennials. Workplace type also plays a role, with fully remote employees reporting higher levels of joy (47%) than hybrid employees (36%).

According to Kylie Green, Managing Director APAC at Reward Gateway | Edenred, the findings highlight a simple but often overlooked opportunity for organisations.

“For a long time, joy at work has been seen as something intangible or difficult to measure,” said Green.

“But what this research shows is that joy has a very real connection to outcomes organisations care deeply about — productivity, engagement, and retention.”

“At a time when many businesses are facing pressure around talent and wage growth, creating environments where employees feel recognised, supported, and connected can have a powerful impact on driving business performance.”

Employees state that their organisation enables joy through a few key levers, including flexibility in how and where they work (35%), a positive company culture (28%), supportive leadership (26%), and good employee benefits (25%).

Unfortunately, one in five employees feel their organisation does not actively enable joy at work. While this is lower among Gen Z (10%) and hybrid workers (13%), it climbs to 31% for frontline employees and 32% for Baby Boomers.

The findings highlight joy at work isn’t a “nice to have” — it’s a powerful driver of how people perform, connect and choose to stay.

To explore the full findings, you can download the 2026 Workplace Engagement Index here.