Keeping Morale Up in a Down Economy

Keeping Morale Up in a Down Economy
According to the 2008 Management Action Programs Inc. (MAP)/Vantage Research study undertaken in late 2008, some 75% of companies saw a drop in employee morale, tied closely to the economy. “Low employee morale, regardless of its cause, is infectious, and company leaders must take proactive steps to improve their employees’ outlook,” says Lee Froschheiser, president and CEO of business consultancy, MAP. “Interestingly, the majority of the CEOs who have experienced a drop in their employees’ morale have also rated revenue growth as their number-one priority. But to support growth objectives, these business leaders need their employees to be fully aligned with the goals.”

During the time since that survey was completed, not much has changed, notes Froschheiser. “I suspect that, based on the work we’re doing with companies, as the economy has bottomed so has morale. It may not be getting worse, but employees are apprehensive and want to make sure their jobs aren’t in jeopardy, which adds to the morale problem.”

The first step in tackling this issue is acknowledging it exists, he adds. Make it clear to your people that you understand the issue and what created it. The next step is motivating the workforce, which inspires confidence and increases productivity. While business leaders can’t control the impact the economy has on their employees’ overall lives, there are steps they can take to boost confidence in their organization and inspire productivity.

Pay Attention to the “Little” Things

In many cases, paying attention to what you might think of as little or mundane things can make a big difference for employees. Froschheiser outlines a few key tactics:

Keep communicating—“If you’re having any issues, don’t keep quiet about them,” he says. “Let employees know exactly where your company stands. It’s when employees don’t know what’s going on that the rumor mill starts. The more they know, the less they’ll have to guess.”
Give recognition—Whenever possible, let employees know how their job performance is affecting the company. When they’re doing the everyday things right, it helps to point that out. “One rule of thumb that’s always worked for me,” says Froschheiser, “is that every time you tell someone something they’re doing wrong, tell them four things they’re doing right.”
Celebrate all successes, even small successes—Anything matters. You might have a deal that closed or even completed a tough inventory. “People just want to know things are going to be O.K.,” he says. “In that case, recognizing every milestone, regardless of size, can become important.”
Help employees understand priorities from a company perspective—In this economic environment, companies are asking people to do more with less. That can create anxiety and even lead to burnout. Froschheiser advises sitting down with your staff and creating “A lists” of critical tasks. If people know what matters most to the success of the organization—and understand that they’re not expected to be perfect at every task, it can reduce pressure. “You don’t want to tell anyone they shouldn’t do the absolute best job every time, he notes, “but you also need to be realistic about what people can achieve.”
Provide balance—It can be difficult for employees to separate from their responsibilities, so business owners and managers need to force the issue. You might tell someone to work at home for a day or enforce an office-wide day off. “People get wired and tired and when that happens, can make mistakes,” states Froschheiser. He advises looking for signs of burnout, like less responsiveness and enthusiasm, reduced participation, lack of engagement and increased infighting. “If you see those things, nip them in the bud by helping employees back off from work, even for a little while. It helps them put things back in perspective and recharge their batteries.”
Be calm in the storm—No matter what, employees need to see that you, as the leader, believe that the decisions you’re making are the right ones and that the company is remaining on the path to profitability. If you project stability, employees will follow your lead and feel less apprehensive.
“Money talks, especially in a hard-hit economy, but a bonus or financial incentive isn’t the only conversation on the table,” Froschheiser states. “Savvy CEOs are generating energy within their companies by being transparent about their successes and failures, and keeping the lines of communication open. They are challenging employees to set higher goals, empowering their hires, glorifying their works, and demonstrating their role in the company’s future. These tactics may seem fundamental, but these basic strategies really do work.”