What is Employee Morale?
Employee morale, or team morale, refers to employees' overall attitude, confidence, and enthusiasm at work, which can affect their work motivation, engagement, and performance.
High team morale boosts productivity, improves communication, and reduces turnover, whereas low morale can cause disengagement, burnout, and increased absenteeism.
Employee Moral Benefits: Why is Morale Important in Teams?
High employee morale is a significant contributor to an organization's overall success, profitability, and well-being due to the downstream benefits it creates.
Increased Productivity
Happy employees are more likely to give their best effort, go the extra mile, and contribute to the organization's success.
As mentioned above, the need for morale can be most pressing when the organization or the economy suffers. Employee morale can either further diminish output or ensure team members buckle down and overcome hardship.
When people enjoy their work and feel supported by their organization, they are more likely to experience less workplace stress and burnout. A high morale workplace without resentment among coworkers indicates everyone pulls their weight. This means when individuals need to step away from their responsibilities, they feel safe and trust their colleagues will temporarily pick up the slack.
In this way, high employee morale can help employees maintain a healthy work-life balance - a critical component of sustained mental health.
Improved Employee Engagement
High morale leads to higher levels of employee engagement. Engaged employees who do and care more than the required minimum are more committed to their work and the organization's mission, leading to better job performance.
Retention is a significant downstream benefit because it also contributes to employee satisfaction and experience across your organization.
Improved Recruitment Efforts
In a labor market where candidates have the means to research your company’s culture, team morale, and values before accepting an offer, it is imperative to create a work culture that top talent will want to partake in.
It is becoming more common for job seekers to ask about prospective employers' efforts to foster employee well-being and morale through structured recognition programs, team-building activities, professional development opportunities, and incentives. It is also accepted that job seekers will research a company’s employee retention and experience before applying for a position there.
Reduced Employee Turnover
Employees with high morale are less likely to leave the organization because they are less likely to seek new job opportunities actively, reducing the risk of losing valuable talent.
High turnover rates can be costly in terms of recruitment, new employee training, and lost productivity, so retaining talented employees can lead to significant human resources cost savings.
Enhanced Creativity and Innovation
When employees are engaged, they often bring innovative solutions to a company's many challenges. This kind of creativity thrives in a positive and supportive environment where employees are not just allowed but encouraged to share their ideas. When these ideas are appreciated, the company grows.
In contrast, in an organization with poor team morale, employees may feel defeated before they even propose an innovation—an attitude of “Why bother?” This demoralized feeling can be avoided by cultivating a workplace culture where innovation is celebrated with authentic consideration, not squashed or picked apart with counterarguments.
When we show employees that their ideas are valid and considered, it reiterates their value and feeling of competence in their work.
Better Teamwork and Collaboration
When employees are in good spirits and believe they are making valuable contributions, they are likelier to work well with their colleagues. High-morale workplaces where people are empowered to do their best work foster a positive work environment where teamwork and collaboration thrive.
A workplace culture where individuals feel their contribution is essential also discourages absenteeism. No one wants to let down the team in a workplace with high morale.
Improved Customer Satisfaction
Staff with high morale are more likely to deliver excellent customer service. They also tend to be more patient, helpful, and positive when interacting with customers throughout their workday, which can lead to higher customer satisfaction and loyalty.
Higher Profitability
Ultimately, high employee morale can directly impact an organization's bottom line. Productive and engaged employees contribute to increased revenue and profitability.
How to Boost Team Morale: Key Drivers
Depending on which theory of motivation you subscribe to, you could make an argument for a variety of initiatives that result in strong employee motivation. You may have already been familiar with Maslow’s hierarchy of needs, for example, which suggests that we all have foundational, physiological needs that must be met first if we ever aspire to meet higher-order psychological needs such as self-actualization.
That said, this is only one of several motivational theories that have appeared over several decades of psychological research.
Another prominent motivational theory is the self-determination theory (2000), which suggests that all humans have three main needs: autonomy, competence, and relatedness. Understanding these needs provides a good lens for understanding what keeps people happy and motivated at work.
For employees to be put in a position to do their best work, the three needs described in the self-determination theory must carry equal importance.
Autonomy - “I Take Ownership of My Work”
The need for autonomy is fulfilled as individuals feel more intrinsically motivated toward a goal than extrinsically motivated.
Put simply, when people feel they are the source of their decisions and actions and that these decisions and actions are aligned with their goals, they are likely to feel that their need for autonomy is being fulfilled.
For example, what decisions could you empower your employees to make themselves, helping fulfill their need for autonomy?
Alternatively, the more a person feels that they must complete certain actions to comply with external requests or demands (i.e., requests or demands important to others), the less likely their autonomy needs are fulfilled. When we take a person’s voice, decision-making power, and control over their workflow away, we cripple their job satisfaction and diminish any personal drive to do hard work that they may take ownership of.
The recent "return to office" debate and the backlash that mandated in-office policies created are good examples of the inflammatory results we get when we take autonomy away from workers. Some people are not fundamentally opposed to returning to the office, but they want to be included in the decision and/or feel like they have the right to decide themselves.
Competence - “I Can Do This Job”
The need for competence is fulfilled as individuals are able to experience a sense of proficiency or mastery of a skill or task. The feeling of competence is inevitably tied to employee feedback. Acknowledging a person’s hard work and abilities (and other forms of employee recognition) boosts morale.
It also depends on matching people with tasks that allow them to use their best skill set. How can you put your employees in a position to apply their strengths on the job and grow and learn in areas of interest? Doing so can support the fulfillment of their competence needs.
People want to feel good at what they’re doing. When workers struggle to feel that they are performing proficiently and/or mastering a skill, it can demotivate and lead to low employee morale. People need the opportunity to feel like they are doing a good job at least in some regard, even if not across the board.
Relatedness - “I’m Part of Something I Like”
Not to be overlooked, the need for relatedness speaks to our human desire to feel connected to one another. That can take different forms for different people, but Deci and Ryan’s research clearly shows that human beings need to feel connected and/or part of a community, whatever form that takes.
A supportive workplace culture where people feel included is critical to sustained positive employee morale.
How connected are employees? Do you offer opportunities for people to get to know each other and feel like they belong in the work community? Not everyone is an extrovert, so I’m not suggesting you legislate this with a happy hour, potluck, or virtual trivia each week; but, if you start by truly caring about each employee as an individual and creating a culture that encourages others to do the same, there’s a good chance people will begin to feel more connected to one another.
Other Key Components
As mentioned at the beginning of this article, employee morale is evident when people are doing their best work, collaboratively, authentically, and with a crystal clear focus.
Self-determination theory gives us a foundation for moving toward doing our best work. What about doing it collaboratively and with a crystal clear focus?
Collaboration
One of the most effective tools I’ve seen for supporting a collaborative workforce is The Collaborative Way. Starting at the center with each organization’s “Up To Focus,” collaborative organizations are achieved through five key practices:
- Being for each other
- Listening generously
- Speaking straight
- Honoring commitments
- Acknowledgment and appreciation
These efforts are supported by two guiding principles: inclusion and alignment.
Great things can happen when organizations commit to creating and maintaining a collaborative workplace. These things are not at the expense of business results but rather in alignment with them, if not accelerating them.
This approach to collaboration may be invoking associations with the concept of psychological safety in the workplace. This term has become more prominent in the last several years as it relates to people being put in a position to bring their best effort to work.
A Clear Focus
An organization’s focus (or lack thereof) is evident in the way it speaks, how often it communicates, and the consistency of those communications.
To evaluate how clear your focus is with your employees, consider the following questions:
- Could all of your employees indicate (with 100% accuracy) what big, hairy, audacious goal your organization is working toward, if asked? For example, helping people control their future, improving the earth for future generations, making the world’s best _____, or something else?
- How often do day-to-day actions appear to support this goal? This applies not just to your customer—or client-facing teams but also to your support teams.
- Do internal–and possibly external–communications reiterate the focus/goal and supporting actions at every turn?
- Are a handful of key metrics highlighted frequently so people know the progress being made toward the goal or focus?
- Do all individuals across your organization know how they have a role in supporting the goal? Can they take personal satisfaction in the organization’s success, knowing their contribution to it?
This is just a start. You must be clear on your organization’s purpose and apply it to every nook and cranny.
Sometimes, the answers to the above questions take more than pulling together a couple of key individuals across your firm; they may also take market research, deep conversations, company-wide employee surveys, and even some individual soul-searching.
It’s hard to imagine an organization with a clear focus, collaborative approach, community feel, autonomy support, and opportunities for mastery achieving anything other than great things.
Effective Employee Morale Ideas and Examples
Building and maintaining employee morale requires consistent effort and creativity. Below are several proven strategies to foster a positive work environment:
Recognizing Achievements When It is Due
It's crucial to regularly celebrate both small and large accomplishments as it boosts employees' sense of worth and motivation.
Public shout-outs, work anniversaries, and congratulatory perks can have a significant impact. It's also worth considering peer-to-peer recognition in addition to manager recognition, as recent data suggests that 4 in 10 employees prefer to be recognized by a peer, while 37% prefer recognition from their managers.
Providing Growth Opportunities
Employees who feel stagnant are more likely to lose morale. To inspire your team and show that their growth is your priority, consider investing in their learning.
You can start by offering career development opportunities such as workshops, seminars, and conferences to expose your staff to new ideas and skills. Also, providing mentorship programs can offer valuable instruction and support as they navigate their career paths.
Depending on your budget, you can consider offering a learning stipend to allow employees to pursue courses or certifications relevant to their roles.
Encouraging Work-Life Balance
Getting enough rest is central to maintaining a work-life balance. So be sure to promote self-care by encouraging employees to use their paid time off and take regular breaks. When someone is on leave, ensure that they have no scheduled tasks and are not contacted so they can fully disconnect and recharge.
Another way to help employees achieve a healthy work-life balance is by giving them flexibility in when and where they work. Letting people work from home means they can spend more time with their families, and they can also choose to work during off-peak hours to avoid rush hour and cut down on travel time.
Open Communication
A positive work environment starts with ensuring each team member feels heard. This can be achieved by conducting regular check-ins, pulse surveys, as well as stay interviews, and exit interviews to get employee feedback on various aspects of the work environment, such as communication, teamwork, and job satisfaction.
Also, organizing feedback sessions for open discussion and regular one-on-ones with individual employees provides the chance for them to safely voice their concerns, seek clarification on work-related matters, and provide input on their professional development.
Creating a Comfortable Workspace
Creating a workspace where comfort meets productivity, according to science, involves maintaining an appropriate temperature in the office to ensure everyone's comfort.
Calming decor and colors can also contribute to a peaceful atmosphere, and good lighting, too, is vital for keeping the energy up and ensuring productivity.
Implementing a more relaxed dress code, turns out, can also help your people feel comfortable at work. Providing necessary technology, designated meeting rooms and a well-equipped break room with food and drinks can further enhance the overall work experience and boost morale.
Team Building Activities to Boost Morale
Here is a list of popular team-building activities that present opportunities to strengthen bonds, improve communication, and uplift your team morale:
- Escape Rooms: Physical or virtual escape rooms challenge your team to solve problems together, building rapport and collaboration in a fun and engaging way. These games also give them a chance to showcase skills they don't normally get to display in the office.
- Workshops and Classes: A well-thought-out team workshop, such as cooking or creative arts, can break the routine while helping employees create memories with their co-workers.
- Outdoor Activities: Nature hikes, sports events, or picnics offer many enjoyable outdoor activities that your team would love. Make sure you choose activities that your employees genuinely enjoy for maximum impact.
- Volunteering Together: Studies have shown that our physical and mental well-being improves when we freely give our time to help others. When you provide your employees with company-sponsored programs, their performance-related outcomes like job satisfaction and commitment to work, also get a boost.
- Office Competitions: Injecting some friendly competition into the workplace with fitness goals, trivia quizzes, or team-based competitions is a great way to boost morale and maybe even get some exercise while having fun.
How to Boost Team Morale Virtually
Remote work doesn't have to be joyless and isolating. Here are five strategies to keep your remote team engaged and motivated:
- Virtual Coffee Breaks or Happy Hours: Informal social interactions are crucial for building rapport. For instance, dedicating time every Friday afternoon for a virtual "hangout" where work talk is off-limits could be a great way to end the week on a high note and get to know each other better.
- Public Employee Recognition: Recognizing individual or team achievements during virtual meetings or via our online recognition board can be a powerful motivation booster. For example, you can give a prompt shout-out to your high performers after they complete a project on your team's Slack channel. This acknowledges hard work and reinforces the value of each individual's contribution.
- Virtual Wellness Activities: Meditation, yoga classes, or fitness challenges can offer a unique avenue to promote your employees’ well-being and bonding. Something like a month-long fitness challenge, where team members track their steps, can spark friendly competition and encourage a daily, lively atmosphere in your workplace.
- Online Team Games: Organizing fun online games such as trivia or virtual scavenger hunts can allow your team to engage in light-hearted competition, break the monotony of work, and provide an opportunity for laughter and enjoyment.
- Weekly Online Check-Ins: Consistent communication is key. Regular virtual check-ins, whether one-on-one or with the whole team, offer a great chance for your team members to catch up, share any concerns, celebrate wins, and just be there for each other.
Best HR Tools to Boost Team Morale
Having the right tools can make a huge difference when it comes to boosting employee morale. The following is a list of HR tools organized by category. All are designed to support team engagement and morale.
Best for tracking employee morale: Employee engagement software
- Eletive: Intelligent engagement solution for mid-sized and large organizations
- Motivosity: Best for teams seeking a holistic approach to employee experience
- Leapsome: Unifying your engagement survey and learning in one platform
- Deel: A simple yet effective option for distributed teams
- Connecteam: A midmarket-centered, mobile-first employee engagement system
Best for keeping employees motivated and committed: Employee recognition programs and employee rewards software
- Nectar: Best peer-to-peer recognition for teams with 50+ employees
- Guusto: Intuitive recognition programs for frontline employees
- Cooleaf: Manager-led recognition tied to core values
- Motivosity: Rewards and recognition tool with a focus on community building
- Connecteam: Mobile-first solution to recognize deskless staff
- Bucketlist: Rewards platform with one of the most extensive catalogs
- Mo: Transparently and reasonably priced, with no rewards fees
- Workstars: An affordable rewards platform catered to U.S. and U.K. markets
- Connecteam: Rewards, time off, and training in one app, free plan available
- Vantage Circle: Suitable for global organizations operating in many countries
Best for Employee Professional Development: Learning Management Systems
- eloomi: Best for mid-size and large businesses
- Connecteam: Scalable LMS option for frontline teams
- SafetyCulture (EdApp): Safety training, up-skilling, and onboarding
Final Thoughts on Cultivating High Employee Morale
What are the fundamentals of employee morale? Let’s recap:
- A clear focus, reiterated often, consistently, and in every possible opportunity
- A collaborative environment of the highest caliber
- Opportunities for employees to feel a sense of control over their day-to-day decision-making
- An environment that draws upon employee strengths and gives them a sense that they are developing and working toward mastery of a craft or skill
- An individualized, community feel and space where people feel connected to one another but still true to their authentic selves.
These are not easy things to achieve, and it’s easy to get pulled back into the complacency of wherever you’re at now.
But by prioritizing team well-being through consistent, thoughtful efforts and the right tools, organizations can cultivate a company culture that recognizes the importance of employee morale and empowers people to thrive. This, in turn, leads to higher productivity, stronger teamwork, and long-term success for the business.
