"New technologies are rapidly overhauling everything about how we work. Business must remain flexible to keep pace. Our data shows that employees associate these tools with happiness, and by extension productivity,” says Shaun Ritchie, CEO, and co-founder of Teem. “It also shows the value of having proper equipment, usage guidelines and training to avoid burnout.”

A drop in happiness at work

The report, drawing on a survey of 1,300 professionals from different industries, found 67 percent of millennials report that they are “somewhat happy” at work, compared to 55 percent saying they are “very happy” in 2016’s survey.

Related: How to keep employees happy

In addition, 48 percent of employees overall report being “somewhat happy” or “unhappy.” The respondents list feeling unappreciated and a poor work/life balance as the leading factors in being less happy.

“What we saw was an 8 percent increase in overall workplace dissatisfaction,” Ritchie says.

The survey also found technology has become something of a double-edged sword. Despite the efficiencies and resources it brings to bear, 49 percent of survey respondents report communication tools make them feel obligated to respond to colleagues regardless of where or when. In other words, drawing the line between work and personal time is harder than ever.

“People feel uncomfortable when they feel they have to work anytime or anywhere,” Ritchie says. “The question becomes, ‘Because I have the ability to access my email on my phone, does that empower me to work from my vacation or free time, or does it require me to do that?’ I think there’s a good, healthy conversation to be had around those topics.”

Technology blues

The survey found 40 percent of employees value flexibility at work through digital tools. Yet work-supplied tech may not be keeping up with the needs of workers: 43 percent of employees say they appreciate the technology their employers offer, but supplement that tech with their own additional equipment.

Related: Don't let tech burn out your workforce

Among new technology trends, the use of digital assistants is welcomed among millennials (76 percent), while boomers (79 percent) are most excited to see augmented reality enter the workplace.

There was also a gender gap in the area of technology, with 55 percent of male respondents saying half or more of their work can be automated, with women more doubtful, at 44 percent.

What brings true happiness?

Well, in the workplace, a raise isn’t a bad place to start, the survey found. The report says 53 percent of workers say they would prefer a salary increase over any other perk.

However, the workers also cite a good work/life balance (23 percent) and recognition for a job well done (22 percent) as the factors most likely to increase their happiness at work.

Other findings in the survey: 51 percent of respondents said the open-office model, a popular workplace arrangement, has not brought significant improvement in the quality of their work.

Also, more than a third of workers, 38 percent, say conflict resolution capabilities in the workplace are “very important” to happiness.