Every business owner or manager knows that staff morale is an extremely important factor in business success. You need to ensure your employees are motivated and satisfied with their jobs. If you don’t, it’s a lose-lose situation: employees are unhappy, and in turn the company suffers when these employees fail to work well and produce results.
But how much do external factors, such as the actual performance of a company, influence staff morale? Let’s take a look at some of the ways staff can be affected by both good and bad company performance.
If a company is performing poorly…
Staff may be worried about job security.
Job security is one of the biggest factors that can have an impact on staff morale and engagement. In today’s uncertain age, where the cost of living is always rising and jobs are often few and far between, employees want to know that they are safe and secure in their role. If a company is performing poorly, employees may begin to worry about their future with that company, thus bringing down morale significantly.
Staff may even use things like share trading to determine their job security – if a company’s share prices are dropping rapidly, employees will hardly take this as a good sign. For this reason, it’s important for managers to be upfront with their employees about changes in a company’s situation, so they don’t go looking for external information that may lead to low morale and rash decision-making.
Staff may be unhappy with their pay.
In dire cases, a company’s poor performance may lead to pay cuts, or the breaking of agreements in which pay raises were previously promised. Issues with pay are another extremely common cause of low staff morale. If employees don’t feel they are being paid what they’re worth, they are far less likely to put in high levels of effort and engagement at work.
There may be a negative vibe in the office.
If a company is not performing well, and the entire office knows it, there will likely be a lot of negativity going around. Employees may whisper together about the uncertain future of the company; managers may take out stress and worry on their subordinates.
All of this can lead to a decidedly unpleasant and unproductive work environment. Studies have shown that negativity and complaining can be ‘contagious’ in the workplace, and that the resulting stress is terrible for both mind and body.
However, on the other hand:
If a company is performing well…
Staff will feel happier and more secure in their work environment.
If a company’s performance and success is bigger and better than ever, you can almost guarantee that staff morale will follow suit and hit an all-time high. Employees who know their company is doing well will feel much more secure and satisfied in their role. For this reason, it’s often a good idea to communicate and celebrate successes throughout the company.
Staff will be encouraged to perform well themselves.
When a company is performing well and achieving its goals, its employees will be encouraged and motivated to do the same thing. If success on the company’s part is also viewed as the success of its employees, staff morale will rise. Employees will want to continue the great results – and achieve even better ones.
Again, this is a good reason to communicate your company’s great performance with your staff. Knowing how well the company is doing can be just the boost they need to pick up their game and perform well themselves.
Have you noticed the performance of your company affecting staff morale?