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The relationship between morale and profitability in a company

Very few companies give proper attention to morale among workers in their organization. This is of course a mistake. High morale in the organization may not directly affect productivity but it has been shown high morale among workers improves work satisfaction greatly and thus increases the profitability of the organization.

Morale can be regarded as team spirit or attitude. Improving morale in an organization should thus affect those concepts. In today's competitive and goal oriented environment companies are usually goal driven and managed and as a result workers are focused on increased efficiency, better procedures and keeping up with competitors. This behavior has its price in worker morale which needs to be balanced.

The balance or improvement in morale can be achieved in many ways. Boosting morale is often done by concentrating on: employee appreciation, employee involvement, management concern and accountability and working environment. The following are some of the ways to improve morale among workers in an organization:

1) Organizational Transparency - Employees are not stupid. They can sense trouble (or good news) a mile away. Transparency in an organization is extremely important whether it is good news such a recent success, troubling news such as an upcoming merger or bad news such as personnel lay offs.

2) Feedback (and more importantly positive feedback)- Take the time to give positive feed back to employees. This should be regarded narrowly. A positively oriented meeting to analyze a recent success what have we done right is also important and contributes to moralee in the organization. Feedback should be implemented regularly and consistently.

3) Milestone parties - Take note of important mile stones achieved. Party! It is important to dwell on success as well as on failure

4) Take time off to think about organizational surroundings - A two day workshop about "Our Department" can do wonders. Let employees express feelings, opinions and thoughts.

5) Hire solution over problem oriented employees - Problem oriented employees are just that, problem oriented. These employees infect organizations with almost negative energies.

6) Make horizontal movement possible - Allow employees to move horizontally in your organization. It is very important to show employees there are other ways open to them.

7) Adjust decision taking strategy to the organization - Consult with employees and listen whenever possible (not always).

8) Create organization fidelity - High organizational and management credibility are highly important as employees can be reassured and can trust management.

9) Working environment - Improve working environment as much as possible. From office design to office supplies.

Studies have shown improving morale improves employee satisfaction and thus improving profitability. Just take a look at successful corporations such as Google Inc. or IBM which are famous for employee moral and satisfaction.

Learn more about this author, Dorian Wales.
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The relationship between morale and profitability in a company

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