How to Fix Employee Morale? Hard Work
“Morale is down.”
No business owner wants to hear those three words.
We know that good talent is hard to find. It’s expensive—and exhausting—to turn over employees.
And when employees have low morale, it affects customers and the overall growth of the business.
In a toxic workplace, the reason for low morale is obvious.
But if you’re a leader who tries to be kind (not necessarily nice) and generally has a good culture, you might be stumped about why morale is down.
In my experience, there are three main reasons for low morale in an organization:
Reason #1 Why Morale is Down
First, lack of vision. It’s cliche but also true. An individual doesn’t have a vision for their own personal growth inside the company.
Where does that come from? Usually, a lack of vision inside the organization overall. Remember, that’s part of the CEO’s role.
The CEO sets the direction of the company and communicates that vision at every level of the business. That vision includes mission and purpose, financial targets, growth strategy, and social impact.
If you aren’t providing a strong vision for your team, they’re going to feel aimless.
Reason #2 Why Morale is Down
Second, unfair treatment. Before you get defensive, unfair treatment is about perception here. Whether or not you’re truly treating people unfairly…doesn’t matter all that much.
I often see disparities in compensation or people leapfrogging over others for promotions—two big ones when it comes to a perception of unfair treatment.
And keep an eye out, because if multiple people feel that the company is unfair, there’s a good chance you’ve got a blind spot somewhere.
My standard is to get the best possible people, then try to pay them 10% more than the market rate. If possible, I create a bonus system as well that aligns them with the results that we are trying to achieve.
I don’t want an A player leaving because of their comp. I don’t want to stress about employee retention.
Yes, it’s harder to hit your margins with higher comp. No, you shouldn’t throw money at people who don’t deserve it because you’re desperate for them to stay.
But good compensation, along with a strong benefits package and potential for bonuses, can go a long way in positioning your company as one that treats its employees fairly.
Reason #3 Why Morale is Down
All right, this third reason is an Eric Crews special.
You might have low morale on your team because your employees aren’t working hard enough.
In up to 80% of the companies I see that have a morale problem, the manager doesn’t ask enough of the team. Sounds counterintuitive, right? Maybe you thought you needed to baby your team a bit more if they are unhappy?
Not true. Here’s what happens when your team isn’t pushed to work hard:
They miss their targets. So now they aren’t winning. Not winning leads to a lack of pride. And they have a lot of extra time to think about (and talk about) all the problems with the business because they aren’t as busy as they should be.
That leads to a downward spiral of resentment and dissatisfaction. And then they walk. Or, worse, they stay.
Here’s what happens with a team that’s working hard:
They don’t have time to complain. Seriously. They’re too busy doing the work. They feel fulfilled; their days have purpose.
And…they’re winning. Because they’re doing what needs to be done. They’re proud of what they’re achieving; they’re proud of their team and their organization.
(Did I mention they’re too busy working to hunt for a new job?)
Yes, they will still complain. But the complaints will be different: “We need some helpers here. We’re growing too fast. Bring somebody else in to support us so we can keep going.”
They don’t want the success to stop. They want you to resource them so it can continue.
Want to make somebody stay with you forever? Make them proud of themselves, compensate them well, and give them plenty of hard work.
Because I need to say it: pushing your employees to do work with purpose is not the same as overworking them. Their work needs to be meaningful, and they need to be compensated well for it. That’s where your responsibility comes in: to set the right vision for the company and pay them what they’re worth (actually, maybe 10% more).
You might think you need to coddle your team when they’re unhappy. It’s not working. They need leadership and something to work for.
It’s cliche, but there’s still nothing that beats the satisfaction of a job well done.
P.S. If you’re struggling with morale on your team, shoot me a note. Let’s figure out how to fix it.
