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Employee Morale: Creating an Environment That Uplifts Your Team

Employee morale drives productivity and engagement. When morale is high, teams are engaged, enthusiastic, and innovative. When employee morale is low, teams are often disengaged, unmotivated, and apathetic. Nurturing positive work morale is crucial for both employee and workplace well-being.

What is employee morale?

Employee morale is the overall attitude and outlook of employees. Teams with high work morale feel supported and cared for in the workplace. They’re invested in their jobs and have positive relationships with co-workers and managers. Employees with low morale at work, on the other hand, may experience frequent conflicts and feel unsupported and disconnected from work and peers.

Why is employee morale important?

Low employee morale can be a silent productivity killer. When employees feel disheartened or undervalued, they’re more likely to seek opportunities elsewhere and become less enthusiastic and productive. Low staff morale contributes to absenteeism, which is estimated to cost the workplace about $3,600 per hourly employee and $2,650 per salaried employee each year.

On the other hand, high employee morale can positively impact your bottom line. Research shows engaged employees increase profitability by 21%, reduce absenteeism by 41%, and decrease turnover by 59%. Investing in employee morale isn’t just a nice-to-have—it yields real benefits for your organization.

How to measure employee morale

It can be difficult to put hard metrics to employee morale, but there are ways you can gauge it: 

  • Conduct regular surveys that include questions about job satisfaction, work environment, relationships with colleagues and managers, and feelings of fulfillment and motivation.
  • Establish open channels for feedback, such as suggestion boxes, anonymous hotlines, or regular one-on-one meetings with managers.
  • Monitor turnover rates and ask questions about work morale in exit interviews.
  • Review performance metrics such as decreases in productivity, quality of work, or customer satisfaction.

What causes low employee morale?

Employees and employers both play a vital role in setting the tone at work. Low staff morale is often caused by a mix of factors like: 

  • Lack of recognition and rewards
  • Inadequate tools to perform effectively
  • No say in decisions
  • Lack of autonomy
  • Unclear paths for career growth
  • Lack of connection between co-workers 
  • Ineffective or unhealthy manager styles
  • Unclear job expectations
  • Uncertainty how work contributes to company success

The good news is that organizations have the power to change many of these circumstances. While you can’t control your employees’ actions and feelings, you can help create a positive company culture that boosts work morale.

Signs of low employee morale

Is your organization struggling to build staff morale? Here are a few telltale signs to look for. 

  • Absenteeism and presenteeism: When work morale is low, employees may struggle to show up and fully engage at work. 
  • Conflicts: Conflict is normal in any workplace, but frequent or ongoing conflict can be a sign of staff morale problems.
  • Disorganized work environment: Employees with low morale may feel less motivated to care for their environment.
  • Regular complaints: If employees routinely complain about workplace issues, especially ones that seem small, it could indicate bigger problems with their work environment.
  • Customer or client complaints: When employee morale is low, you may receive frequent customer complaints about work quality, customer service, or employees’ attitudes.

How to boost employee morale

Boosting employee morale isn’t as simple as telling employees to “stay positive.” Although you can’t control your employees’ attitudes, there’s still a lot you can do. Here are a few ways to boost morale at work

#1 Understand current employee morale

Gather information about workplace attitudes and feedback on improving them. This may include anonymous surveys, exit interviews, grievance reports, or monitoring productivity, retention, and engagement. Lyra Health offers assessments and tools to help you understand and improve your team’s work morale. 

#2 Assess compensation and recognition

Employee morale can spiral if workers feel they aren’t fairly compensated. Make sure your compensation package is up to par for your region and industry. People also like to be recognized for their work. Research finds shout-outs, career growth opportunities, and other accolades help employees feel motivated, perform better, and stay around longer.

#3 Offer flexibility

Some industries are limited in the autonomy they can offer employees, but most employers can find ways to give workers a greater sense of freedom. If you’re able, offer employees flexibility in when, where, and how they work.

#4 Support employee development

No one wants a dead-end job. To improve employee morale, consider creating employee development plans to demonstrate possible paths to career advancement. This shows your employees how to advance and that you care about their development. 

#5 Foster purpose and belonging

People want to understand why their work matters. How does their role support the company? How does the company create positive outcomes? It’s also important to keep a finger on the pulse of workplace inclusion. If interpersonal conflicts or exclusionary work policies are making workers feel unsupported, those issues need to be addressed.

#6 Offer mental health benefits

Morale can affect employee mental health, and vice versa. Workers with mental health conditions are more likely to take sick days and lose time to unproductive tasks. Offering mental health benefits and encouraging employees to use them can support employee mental health and boost satisfaction and staff morale.

#7 Train managers

Managers can directly impact how employees feel about their jobs, so management training programs can help boost employee morale. When managers learn about effective communication, psychological safety, and recognition, their teams’ job satisfaction, morale, and loyalty typically improve

#8 Allow for difficult feelings

The workplace should offer space for all kinds of feelings, even the difficult ones. Suppressing difficult feelings or not addressing issues can fuel toxic positivity, which takes a toll on both workers and businesses.

Drive better outcomes by improving employee morale

Imagine an environment where your employees feel empowered to thrive, where their best work flourishes naturally. At Lyra, we provide assessments and tools to boost employee morale, enriching your employees’ work experience and increasing the success of your organization.

Boost employee morale at your workplace

Lyra offers assessments and tools to create a culture of wellness.

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About the reviewer
Sarah Grausz

Sarah is an organizational development program specialist on the workforce transformation team at Lyra Health. Sarah has a master's degree in organization development from American University and specializes in coaching and training leaders to build equitable, redeeming workplaces. She lives in the San Francisco Bay Area, loves spending time with her large extended family and baking with her toddler.

Clinically reviewed by
Sarah Grausz
By The Lyra Team
22 of April 2024 - 4 min read
Mental health at work
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