Poor employee morale costs companies an arm and a leg. In fact, according to the Gallup Institute, it costs the US economy $605 billion a year. What’s more, companies with a low level of employee morale, receive 2.5 times fewer profits on average than the competition.

However, contrary to the above, many company executives still do not pay enough attention to this factor.

The Importance of Employee Morale

Motivated employees tend to overperform, which means that you get much better results for the same money.

Employees with a low level of motivation not only work inefficiently, but they also slow the whole team down, reducing team morale and disappointing your customers. According to the studies done by Harvard Business Review, 71% of respondents consider employee morale a critical factor necessary for the success of an organization.

But in addition to allowing for better performance and employee retention, employee morale entails positive consequences for middle and senior managers, especially for those who do not have enough time due to the ever-growing number of company employees.

Why? Because if you know that the employee morale is high in your organization, you can trust your subordinates more. And this means that you can let them work on their own without harassing them with monthly reports and checks.

Employee Morale Blockers

No growth. If your business does not grow, employees tend to get bored and hence they are no longer motivated. They need growth professionally, as otherwise, they will merely find another job.

Lack of transparency. When employees, no matter how talented they are, do not understand what is expected of them, this leads to stress. Therefore, it is essential to set clear objectives for each and every team member and do a tête-à-tête from time to time to make sure you are clear on the goals.

Management change. No change is easy to handle. If there has recently been a merger or rearrangement at the top management level, this can easily affect the morale of your employees.

Ways to Improve Employee Morale

Acknowledge the problem if there is one. Do not try to shield your employees from the bad news but be honest with them instead. Employees will appreciate your honesty, and you can combine efforts to solve a mutual problem.

Give recognition. Lack of recognition is the number one reason that people leave their jobs. If they do not receive credit for the time and energy that they put into their work, your employee morale will be poor.

Educate your team leaders. Team leaders have the greatest impact on the team, which means that educating them is one of the most important things you can do to cope with poor employee morale. Your team leaders should be able to:

– Create a favorable environment for team members;

– Leverage emotional intelligence;

– Give recognition;

What’s more, team leaders need to teach employees how to give proper feedback, as it is crucial for dealing successfully with internal issues.

Set achievable goals. Setting unrealistic goals and trying to catch up on a tight schedule contributes to poor employee morale. Therefore, your task is to help your workers maintain a healthy life-work balance.

Give your employees the opportunity to grow. To make employees motivated, let them feel they are making progress. Even if this is not an actual promotion, give them the opportunity to enroll in some workshops or attend conferences that will improve their skills.

Concluding Words

High employee morale is not a luxury, but a necessity. It is the key to topnotch team performance, loyalty, and self-realization of your employees.