Employee morale is directly related to company productivity, thus the bottom-line. At no other time in history, is the previous statement more true. The economy is in retreat as businesses strive to reestablish their foundation and refocus their commitment. Companies are being required to reduce risk and corporate aversion while maintaining high productivity. Layoffs reduce overhead and increase profit potential, at what risk?
The current unemployment rate is approximately 10%, with 1 in 10 Americans looking for viable and secure work, while the ones employed barely hang on. Businesses have taken this opportunity, to the dismay of their employees, and requiring increased results and productivity. As businesses push harder and expect more, they are increasingly creating a negative work environment. The article "Are Employers Using the Recession as Reason to Mistreat Employees?" brings focus to this issue and its negative nature. Reducing the number of employees, with the same or slightly less amount of work, places an undue strain and directly influences morale. Morale does not just affect productivity, but customer service and overall costs.
As stated above, employee productivity is directly related to employee morale. To counteract the negative result of the decline in employee morale, companies must show increased appreciation and support for the remaining employees. Rewards are a good start and go a long way with almost no impact on the bottom-line. Acknowledgement is the easiest method and has no cost association. The need for management to interact directly with employees has never been more important. Stopping to converse with an employee or just a passing smile is important. Employees are people and they want to know their employer sees them as such and not as just a number. High impact rewards include letting employees leave early on Fridays, instituting flex hours, Friday casual days, or even periodic theme days. Even providing lunch, every once in a while, will go a long way without breaking the bank. For businesses that want to be more targeted, properly conducted employee surveys will provide valuable information.
The current trend toward negative employer/employee relations must be reversed. Employees share in the responsibility and must maintain a positive outlook. Until the recession is over and the economy makes considerable progress, companies must look to increase productivity by maintaining a cohesive, interactive, and positive relationship with their employees. What will your company do?
