Employee morale reflects the level of motivation, enthusiasm, and engagement your team feels. It's the barometer of employees’ and emotional outlook toward their work.
When morale is high, employees are more likely to be productive, collaborative, and loyal. Conversely, low employee morale can lead to disengagement, absenteeism, and turnover. Morale directly impacts employee well-being. 17% of workers report feeling lonely at work, and 77% say they’re more productive with a sense of community, a recent Howdy.com survey found.
Key steps to improving employee morale
Increasing employee morale requires a deliberate, ongoing effort. Here’s how to improve culture, satisfaction, and engagement in your workplace:
1. Define and reinforce your core values
Establish a clear set of values that guide behavior and decision-making. Revisit core values regularly.
2. Lead by example
When leaders demonstrate integrity, transparency, and empathy, they set a powerful standard for their team.
3. Encourage open communication
Establish regular check-ins, feedback sessions, and group meetings so your employees feel heard. At each opportunity, promote an honest, two-way dialogue.
4. Recognize and celebrate
Boost motivation by recognizing achievements. Celebrate both individual wins and department milestones.
5. Promote community
Strengthen relationships and build trust by hosting team-building events, cross-functional projects, and get-togethers.
6. Offer professional growth opportunities
Let employees know you support their long-term aspirations through training, mentorship, and career development resources.
7. Support work-life balance
22% of workers feel guilty about taking time off, and at least 3 PTO days go unused annually, according to Howdy research.
Encourage your employees to take their vacation time, offer them flexible schedules, and monitor their workloads to prevent burnout.
8. Request input and act on it
Regularly ask employees for suggestions. Follow through on changes to show appreciation for their input.
9. Provide fair compensation and benefits
Offer competitive pay and comprehensive benefits, including healthcare, mental health resources, and financial wellness programs.
10. Allow for autonomy
Empower your employees to make decisions and take ownership of their work. Micromanagement can stifle morale.
11. Maintain transparent leadership
12. Create a positive workspace
Provide comfortable, functional environments that support productivity.
13. Limit unnecessary meetings
Protect employees’ time by only scheduling meetings when necessary. Your staff will appreciate the space for deep work.
14. Set clear expectations and goals
Clarity around roles and responsibilities helps reduce confusion and stress.
Where employee morale boosts business performance
Employee morale isn’t just about good vibes — it’s a powerful driver of business success. From productivity and retention to profitability and innovation, high morale fuels performance at every level:
Productivity
The more engaged the employee, the greater their proactivity and commitment.
Retention
Fulfilled employees are less likely to leave.
Profitability
Companies that employ workers with high morale tend to outperform their peers in revenue and profitability. Why? Because happy employees lead to happy customers.
Innovation
A positive workplace culture can increase creativity, collaboration, and risk-taking.
Measuring and maintaining morale over time
Before you can improve morale, you need to measure it. We recommend assessing employee sentiment through:
- Employee engagement and morale surveys. Regular surveys can assess satisfaction, stress levels, and identify areas for improvement.
- Pulse surveys. Short, frequent check-ins gauge real-time morale trends.
- One-on-ones and focus groups. Conversations uncover insights that surveys might miss.
- eNPS (Employee Net Promoter Score). Ask employees how likely they are to recommend your company as a place to work.
- Observation. Watch for changes in behavior, tone, collaboration, and energy.
- Exit interviews. Departing employees often provide candid insights into morale issues.
Maintaining morale requires action. When morale is tracked consistently and acted on thoughtfully, it’s easier to create an environment where employees stay energized, motivated, and committed to doing their best.
Improve employee morale — the Howdy way
At Howdy.com, employee morale is built into our operations. With a 98% developer retention rate, Howdy proves that a strong culture is possible with the right strategies, even across borders and time zones. Here's how we do it:
Physical community
Unlike many remote-first companies, we invest in local infrastructure to foster an in-person community. Our "Howdy Houses" are vibrant hubs where team members can co-work, collaborate, and grab lunch with colleagues.
Mentorship
Pay transparency
Rather than offering gig-style freelance work, we provide full-time contracts with regionally competitive salaries. Job security builds trust and encourages commitment. Weekly pay and complete transparency around compensation reduce stress and foster a culture of fairness and respect.
Community perks
From gym memberships and wellness stipends to regular team events and surprise gifts, community perks reward effort and promote well-being. Whether celebrating a birthday, hosting a group hike, or offering time off for personal needs, these benefits send a clear message: people matter here.
Fight attrition with a focus on retention
Low employee morale significantly hampers success by fostering disengagement, which can stem from a sense of being unappreciated. Employee motivation plummets when your staff experiences micromanagement, receives unclear direction, or lacks adequate support.
Elevated employee morale is critical for a productive, resilient, high-performing business. By investing in communication, recognition, leadership, and work-life balance, you can foster a culture where people feel empowered to thrive.