How Is Low Employee Morale Hurting Your Bottom Line?

When we say ‘morale,’ we’re really talking about the state of mind dealing with someone’s overall emotional state. An employee’s on-the-job attitude is their workplace morale.

How Low Morale Affects Your Bottom Line

We all know that a positive attitude has benefits on an employee’s performance. But did you know that low morale can negatively affect workforce productivity? Disengaged employees can have drastic, dramatic effects on every aspect of your day-to-day business.

According to a recent Gallup study, seven out of ten employees say they aren’t “completely engaged” while at work. Seven out of every ten members of your workforce aren’t working to their full potential.

Causes of Low Morale

In today’s volatile economy, the root of low workforce morale lies in several areas, including

  • Job security issues
  • Limited upward mobility for current employees
  • A perceived lack of fair compensation
  • Excessive outsourcing practices
  • Workplace stress
  • Uneven work-life balance

Tangible Effects of Low Morale

When it comes to workforce productivity, low morale can have an extreme effect on your business. Disengaged employees:

  • Have a demonstrated lack of initiative
  • Are more negative
  • Have higher absentee rates than their engaged counterparts
  • Gossip more
  • Miss deadlines or target deliverable dates
  • Have increased mistakes or errors in the final product
  • Leave for ‘greener pastures’

In every business, your people are your most important and valuable resource. Your workforce is your company’s engine. They drive your productivity and generate results. Their morale and their motivation will impact your company’s success … or failure.

How can you increase morale within your workforce?

Build Relationships on a Foundation of Trust

Effective relationships are those built on a foundation of trust. Without a strong, trust-based relationship with your staff, your efforts to recognize their talents and contributions will be viewed as manipulation. Rather than being seen as valuing your employees, you will be seen attempting to get ‘more’ from your workforce. By investing time in your employees, you will develop solid relationships based on trust. Your staff will know you value their role within the company, and that boosts morale.

Nurture Creativity Within Your Workforce

When employees feel safe and valued, they are more inclined to find new ways to solve problems and increase productivity. The best way to cultivate creativity is to embrace the philosophy of “no such thing as a bad idea.” When employees feel valued and trusted, they not only bring their talent to work, they bring their ingenuity.

Build Productive Teams

When employees work together to solve issues or achieve common goals, they build camaraderie, trust, and respect.

At its core, low morale thrives in an environment that lacks trust. When it’s an every-man-for-himself philosophy, no one wins, least of all your company. You can increase morale and energize employees by letting your enthusiasm and optimism for their future within the organization show. When employees recognize the value of their work, it encourages ambition and determination, and that means good things for your bottom line.

Let the staffing specialists at Morris Bixby help you develop a winning strategy to combat the damaging effects of low morale.


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