Improving Employee Moral in Tough Economic Times

In tough economic times, businesses of all sizes are reducing staff or reorganizing in an effort to reduce expenses. While there is an obvious financial benefit to reducing or reorganizing staff there is also a risk. The risk is associated with employee moral. Staff morale is critical to the success of any reorganization or a downsizing effort, because when employees feel troubled about their future employment it may cause them to lose focus and be less productive.  

Here are five ways to keep employees motivated and ensure that your organization remains a positive and productive place to work. 

1.     Re-evaluate and re-communicate your strategy. Often employees think that nothing has changed. They may think that the organization's priorities and goals are still the same. If tough times have meant a reevaluation of what the business needs to do to be successful, then employees need to know what has changed so they can adapt their contribution to the organization's newly revised strategy.

2.     Streamline processes. Ask employees how to improve organizational processes and reward them for suggestions that are implemented. There may be ways to do things more efficiently and effectively. Those who do the work know this better then anyone else. This will also allow for collaboration among individuals and departments fostering team work and team spirit.

3.     Be as transparent as possible. Open communication is important as rumors proliferate in a changing work environment and those rumors can create misguided assumptions. To the extent that it is possible, share plans as to how the company will be reorganized and how staff may be cut.

4.     Reward employees for the types of innovation and collaboration that you desire. Rewards are not just financial. Rewards can also be small gestures such as saying thank you, asking employees for their opinions on ideas and complimenting their efforts. This type of reward goes a long way in building loyalty and easing the stress employees may feel about the future.

5.     Create opportunities to listen to your employees.  Invite some employees you typically don't talk with to lunch. Walk around just to get a sense of the atmosphere, or go to a remote location for a few days to allow your employees to spend time talking with you in person versus via e-mail or phone. By spending time listening to your employees, you provide them with a chance to voice their concerns and ask questions. This will allow employees to realize that you are listening. In addition, it allows you to get a better sense of the overall moral of your organization. 

By taking some of these steps, you will be able to minimize the risk of poor employee moral. When employees can visualize their future role in the organization and be part of the future, they're more likely to be focused on the future and be more productive.

Carol Gravel is a graduate professor at Franklin Pierce University and an advisor for graduate students who are studying Human Resource Management. She is forming a new SHRM Student Chapter at Franklin Pierce University to enhance support for current and future HR professionals.She can be reached at gravelc@franklinpierce.edu.