Keeping Employee Morale High During Lean Economic Times

Employee morale affects every aspect of an organization’s culture from its mission to its competitive advantage. In truth, an organization’s unique culture, unique interests and unique problems, all may contribute to employee morale. This is true whether the organization is a for-profit or a non-profit entity. Yet, despite today’s turbulent environment, an organization’s continued business success depends upon employees’ daily commitment to utilizing their full range of knowledge and skills.

Thus begs the question: what can management do to boost morale or sustain it during turbulent economic times? Assessing the organization’s climate is one way to begin. For example, are rumors about possible layoffs spreading throughout the organization? Perhaps there have already been some layoffs? Finally, has management held meetings to answer questions to hopefully allay employee fears? If the answer to the latter is no, this is an important next step, for clearly effective communication is more important today than ever before.

While communicating about what challenges lie ahead may or may not allay employee fears, discussions about possible budget cuts or other reductions will allow employees to ask questions and/or voice any concerns that they may have about their positions, or about the organization at large.

Identifying the impact of the current situation on employees’ personal responsibilities, as well as the organization’s mission and goals is also important; as is understanding how the factors that relate to an organization’s success: things like maintaining customer loyalty, increasing production despite layoffs, hiring freezes, and loss of bonuses or other incentives, affects morale.

Besides keeping employees informed, finding ways to make employees feel respected, valued and appreciated also go a long way to boosting morale. Some ways that management can improve morale during difficult times include:

Asking employees for input before making decisions that impact their roles or work.

Responding to employee questions or requests promptly.

Creating an open door policy if none exists. And encouraging employees to use it once established.

Recognizing employees that go the extra mile in some manner.

At Goizueta Business School, we have a staff recognition called the Class Act Award. Nominated by their peers as well as GBS faculty, this award is presented to employees for personal achievements as well as their contributions to Goizueta that exceed their individual job responsibilities. (I was a recipient last year). Awarded at quarterly Staff meetings, in the past a gift card accompanied the small, star-shaped trophy. Even without the gift card which I suspect will be discontinued temporarily as Emory is not immune to our current economic woes, this recognition is a nice recognition of staff achievement.

Granted, staff events such as an organizations’ annual holiday party or company picnic go along way toward fostering morale, still they only go so far strategically to improve morale overall. Organizational strategy during lean times must be much more than a one-time or huge sporadic event. While limited resources have always been inherent to non-profits, today, for-profits organizations are also racking their collective, creative brains to come up with low to no-cost morale boosters to build and/or sustain morale.

For instance, a cost-saving way to recognize an employee might include an e-mail from an employee’s supervisor for the performance of a task that saved money and/or other resources. Perhaps a handwritten note-card from the Company’s CEO or the Chair of an organization’s Board might be another. A write-up forwarded via of a company-wide e-mail is sure to brighten a recipient’s day, as would posting letters from satisfied clients on message boards where workers and peers alike can see them. Lastly, potlucks, where everyone brings something not only build morale, but also offer co-workers an opportunity to try new food items.

Noticing how the company treats those employees who are laid off, fosters respect and loyalty from those employees whom remain. Likewise, sensitivity to the needs of remaining workers helps to strengthen the bonds among management and employees, with an added bonus – motivating all employees. Clearly a one-size-fits-all resolution may not work during troubling times. However, incorporating just a few of the above suggestions will go a long way to keeping morale high during lean economic times and well beyond.

Carol Gee

Carol Gee, M.A. has worked in education for 26 years in positions ranging from teaching to administration. Currently she is an editor and business writer at Goizueta Business School at Emory University. She is also the author of books, The Venus Chronicles and Diary of a ‘Flygirl’ Wannabe (Life Lessons of a Cool Girl in Training,) and a contributor to the baby boomer book, Age Smart-Discovering the Fountain of Youth at Midlife and Beyond. Carol is a recipient of the Center for Women’s 2009 Unsung Heroine Award for recognition of her dedication to issues that affect women at Emory or in the larger community.
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