Importance of Employee Morale

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How satisfied are your employees with their work? Are they engaged and motivated? As a manager or team leader, it's in your power to increase employee morale and well-being. This in turn will lead to greater productivity, reduced absenteeism and higher revenue for your business. Organizations that value the importance of employee morale report increased performance and profitability.

What Is Employee Morale?

Employee morale can be defined as the overall attitude, outlook and satisfaction that people have in the workplace. When employee morale is high, productivity and performance increase. When it's low, people drag themselves into work and lack motivation, which can lead to conflicts, poor performance and loss of revenue.

What Factors Influence Employee Morale?

Several factors affect employee morale, including the organizational culture, work environment, leadership, peer support, stress levels and wages. For example, workers who don't receive benefits like dental insurance and parental leave may feel that their work isn't valued. This can result in low morale and higher employee turnover rates.

A poor work-life balance can negatively impact their well-being and motivation too. Employees expect to have a flexible schedule and work-from-home opportunities. This factor can influence their decision to take or leave a job.

According to Gallup, more than half of workers would change jobs for one that offers more flexibility. Approximately 35 percent would gladly switch to a job that allows them to work off-site full time. Others would make this switch for a more comprehensive health insurance plan, bonuses, paid sick days or paid vacation.

The Importance of Employee Morale

The importance of morale in the workplace cannot be underestimated. This factor has a direct impact on your employees' well-being, performance, efficiency and quality of work. Employees with high morale are more productive, deliver better results and stay with a company longer. If the organization is going through a crisis, they will work harder to help it survive and achieve its goals.

High employee morale can result in lower turnover rates and make it easier to attract top talent. People want to work for companies that invest in their employees and care about their well-being. Organizations with employee engagement programs report 223 percent greater customer loyalty and 26 percent higher increases in their annual revenue. Engaged employees are more likely to meet customers' needs and demands, which in turn can improve the company's bottom line.

Happy Employees Are More Productive

If you want your business to grow and accomplish its goals, you need to be aware of how your employees are feeling and take the steps needed to boost their morale. Happiness and productivity are strongly connected.

When morale is high, people tend to overperform and get more done in less time. They're more eager to complete their tasks and less likely to engage in conflicts. Poor employee morale, on the other hand, can slow down the entire team and affect the company's image, revenue and overall performance.

The importance of morale in an organization is directly linked to work performance, productivity and employee satisfaction. Almost 90 percent of engaged workers are less likely to leave their jobs compared to their disengaged counterparts. This translates into bigger savings and higher employee retention rates for your business.

Prioritize Employee Well-Being

Employee morale and well-being should be a priority for any organization. Happy employees are productive employees. Simple things such as promoting a healthy work-life balance, encouraging communication and rewarding hard work can have a positive impact on your team. As a manager, you can and should create a work environment that promotes camaraderie.

Successful brands like Facebook, Google, IBM, IKEA and Microsoft have one thing in common: They all realize the importance of employee morale. IBM, for example, rewards staff with triple-benefits programs, in-house training and external education programs, flexible work arrangements and career-growth opportunities. Facebook is known for its innovative workspaces that drive creativity and collaboration.

Even if you're on a budget, you can still implement measures to boost employee morale. Adopting a paid time-off policy, offering on-the-job training and organizing team-building activities are just a few examples.

References

About the Author

Andra Picincu is a digital marketing consultant with over 10 years of experience. She works closely with small businesses and large organizations alike to help them grow and increase brand awareness. She holds a BA in Marketing and International Business and a BA in Psychology. Over the past decade, she has turned her passion for marketing and writing into a successful business with an international audience. Current and former clients include The HOTH, Bisnode Sverige, Nutracelle, CLICK - The Coffee Lover's Protein Drink, InstaCuppa, Marketgoo, GoHarvey, Internet Brands, and more. In her daily life, Ms. Picincu provides digital marketing consulting and copywriting services. Her goal is to help businesses understand and reach their target audience in new, creative ways.

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