How to Improve Employee Morale and Increase Productivity: Strategies for a Motivated, Engaged

Morale.

It’s the energy that fuels motivation, the difference between an engaged employee and one who’s simply clocking in and out. It’s what makes employees bring their best to work instead of dragging their feet through the day.

Forbes defines employee morale as “...the job satisfaction, attitude, and outlook that employees have while at your business.” A workplace thrives when morale is high, and productivity follows. But when motivation dips, so does performance, collaboration, and overall workplace culture.

Businesses depend on their employees to grow, innovate, and succeed. When morale drops, burnout creeps in, 😫😞 and productivity takes a hit. A Gallup study found that 23% of employees experience burnout at work very often or always, while another 44% report feeling burned out sometimes. That’s nearly two-thirds of the workforce struggling to stay motivated.

Boosting employee morale isn’t optional—it’s a necessity. A team that feels valued, recognized, and supported works harder, stays longer, and drives business success.

How does morale affect productivity?

There’s a direct link between employee morale and productivity. When morale is high, employees are motivated, committed, and far more likely to put in their best effort.

Gallup study found that highly engaged teams show 21% greater profitability, emphasizing the impact of morale on a company’s success. Conversely, low morale can have a ripple effect, dragging down productivity as employees become disengaged, less enthusiastic, and even more prone to errors. 

When employees feel unappreciated or overwhelmed, their performance naturally declines, resulting in missed deadlines, lower quality of work, and a lack of initiative. Keeping morale high ensures a workplace where employees are eager to contribute and go above and beyond.

Signs of low employee morale

Recognizing the signs of low employee morale is crucial for addressing issues before they escalate. Here are some common indicators:

1. Increased absenteeism  

When employees start taking more sick days or frequently call in absent, it’s often a red flag. While personal reasons may play a role, increased absenteeism can also signal disengagement or burnout. Employees with low morale may feel less motivated to show up for work, especially if they no longer feel invested in their roles.

2. Decline in productivity 

 A drop in the quality or quantity of work is another clear sign of low morale. Employees may struggle to focus, miss deadlines, or deliver subpar work because they’ve lost their motivation and drive. When employees are disengaged, they often put in less effort, leading to lower overall team productivity and increased errors.

3. Lack of communication 

Employees who were once active in discussions or proactive in sharing ideas may become silent when morale is low. They may avoid meetings, not contribute in team discussions, or seem reluctant to voice their thoughts. This withdrawal from communication indicates they feel disconnected or undervalued.

4. Negative attitude 

Low morale can lead to a noticeable shift in an employee’s attitude. This may manifest as increased complaints about work, tension among coworkers, or a general pessimistic outlook. The once-positive energy of the team can turn toxic, affecting both individual performance and the overall work environment.

5. High turnover rates 

When employees leave the company more frequently, it’s often because they’re seeking a better work environment. High turnover is a major sign that employee morale has deteriorated, as employees no longer see a future with the company or feel appreciated. This can also result in a loss of talent and higher costs related to recruiting and training new staff.

Identifying these signs early on allows managers to address morale issues before they spiral out of control, improving both retention and team dynamics.

How to boost employee morale in the workplace?

If you want to avoid this, here are some tips to boost employee morale in the workplace, restore enthusiasm and engagement amongst your workforce quickly and efficiently.

1. Meaningful work and autonomy

When employees feel that their work is meaningful and aligned with the company's values and goals, their morale improves. Additionally, allowing employees a certain degree of autonomy in their roles and decision-making can boost their sense of ownership and job satisfaction.

2. Provide care packages to remote workers

The current circumstances faced by many businesses worldwide, with remote work made unavoidable as shared office spaces are taken out of action, means that a whole new kind of employee burn-out is occurring.

A Glint survey of more than 700,000 employees worldwide found that comments related to burnout doubled from March 2020 (pre-lockdown) to April 2020 (during the lockdown, working remotely), increasing from 2.7% to 5.4%

Thankfully you can revive the spirits of team members who are working from home by sending out care packages that will breathe new life into their domestic setup.

There are lots of ideas for care packages to consider, ranging from tasty snack boxes to sustain appetites throughout the day, to custom combinations that are tailored to the specific personality and hobbies of individual workers.

The implied message of any care package is this; remember to take a break. It will also show employees that you are attuned to their needs and sympathetic to their struggles.

3. Professional development opportunities

Offering opportunities for employees to grow and develop their skills not only enhances their value to the organization but also shows that you care about their long-term career goals. This can include workshops, training sessions, mentoring programs, or support for pursuing additional education through online upskilling platforms.

4. Show recognition for achievements

One of the best ways to boost employee morale is by rewarding🏆 and recognizing🥇 their efforts.

Morale can dip if team members feel like they are putting their all into a project and making a success of it, only for their efforts to go unrecognized.

You can remedy this by making sure that you show your appreciation both one-to-one and in a group setting. Recognizing the efforts and achievements of employees, no matter how big or small is what makes a leader truly inspirational.

Likewise, it is sensible to invest in a rewards and recognition platform that encourage other team members to single out the successes of their colleagues, and you can even formalize this process if you wish, creating a self-perpetuating approach to the recognition that will help with team bonding and boosting employee morale.

5. Celebration of milestones and achievements

Celebrate both personal and professional milestones with your employees. This could include birthdays, work anniversaries, project completions, or hitting important targets. Publicly recognize and appreciate their contributions during team meetings or through internal communication channels. By acknowledging their achievements, you reinforce their sense of belonging and worth within the organization.

6. Don’t communicate outside of office hours

One of the guaranteed ways to stress out employees and leave them feeling dissatisfied is to foster a workplace culture that expects out-of-hours availability to be the norm.

Even if you do not explicitly say that workers should be on-call to respond to emails, calls, and instant messages when they are not at their desks, the simple act of communicating outside of their contracted hours can pile on this pressure anyway.

It is better to go in the opposite direction altogether and create a policy for all forms of work-related communication which discourages direct interaction between colleagues and managers during the evening, for example.

This is all about establishing a healthy work-life balance ⚖️, and not just paying lip service to it. You might think that this could hamper productivity, but in reality, if workers are happier and more content, they will be more productive during office hours than they would if they were burning the candle at both ends.

This is not ideal for every employee, although it is better than the alternative of total inaction.

7. Peer recognition programs

While formal recognition is important, involving peers in recognizing each other's contributions can be equally impactful. Implement a peer recognition program where employees can nominate their colleagues for their achievements, teamwork, or any positive behavior.

This fosters a culture of appreciation and camaraderie among employees. Consider incorporating rewards or incentives, such as gift cards or additional time off, to make the recognition even more meaningful.

8. Actively ask for feedback

Plenty of managers thinks that it is enough to simply say to their team members that they can come to them with any issues or sticking points that they want to raise.

Unfortunately, this relies on employees being proactive and confident enough to tackle potentially tricky subjects with a superior on their own initiative.

The solution is to make sure that seeking feedback is part of your normal responsibilities, whether you integrate it with the one-to-one catch-ups you have with staff, or whether you go a step further and schedule interviews specifically to find out what is keeping workers with the company, and what improvements could be made to strengthen their loyalty further, or set up anonymous surveys, like the ones offered by Empuls, to encourage employees to share their honest feedback.

This will also pinpoint problems that you may not even know about, and allow you to make positive changes that benefit all workers, leading to that sought-after moral improvement.

9. Keep the communication coming

Communication is the key to building great teams and organizations. Today's employees are extremely fast-paced and expect to keep a tab on everything that is happening around them - be it success or failure. Not communicating something or keeping the employees uninformed about the happenings can demoralize and pull them down.

10. Demonstrate the broader impact they have

One final way to make workers more engaged with the organization they represent and less prone to becoming disillusioned is to make sure they understand what their contribution goes towards.

The simplest way to do this is to regularly share updates on how the company is faring, where it is gaining traction, and what difference their department is making in this context. Feeling like you are part of a wider whole and have a key role to play will encourage anyone to keep on trucking, even in the most challenging of circumstances.

Build a people-first culture and great employee experience with continuous employee feedback & continuous improvement.

11. Wellness initiatives and stress management programs

Implement comprehensive wellness programs that focus on both physical and mental well-being. Offer workshops on stress management, mindfulness, and resilience.

Provide access to counseling services or employee assistance programs (EAPs) to support employees dealing with personal or work-related challenges. By prioritizing their holistic well-being, you show that you care about their health and happiness beyond their job roles.

Examples of companies boosting employee morale

Many companies have realized the importance of employee morale and have implemented successful strategies to improve it. Here are a few real-life examples:

1. Airbnb’s focus on belonging

Airbnb has created a culture that prioritizes belonging, both for its employees and customers. The company actively promotes inclusivity by encouraging employees to share their personal stories and build strong relationships with their peers. 

Airbnb introduced employee resource groups (ERGs), which allow individuals from different backgrounds to connect over shared interests or experiences, fostering a sense of community. 

Additionally, Airbnb organizes "Belonging Days," where teams participate in workshops and discussions aimed at creating a more inclusive work environment. This focus on inclusivity has helped Airbnb build an environment where employees feel valued, appreciated, and motivated to perform their best.

2. Buffer’s transparent salary and work-life balance policies

Buffer is renowned for its radical transparency, particularly when it comes to salaries. The company publicly shares its salary formula, allowing employees to see exactly how compensation is calculated, ensuring fairness and eliminating guesswork. This transparency creates a culture of trust and equality, boosting employee morale. 

Additionally, Buffer has a fully remote work policy, allowing employees to work from anywhere in the world. This flexibility gives employees control over their schedules and promotes a healthier work-life balance. By promoting trust, fairness, and flexibility, Buffer has created a culture where employees feel empowered and highly motivated.

3. Patagonia’s environmental activism and work culture

Patagonia’s commitment to environmental activism is deeply embedded in its work culture, which has a direct impact on employee morale. The company encourages its employees to engage in environmental causes, offering them paid leave to participate in environmental activism and volunteering programs. 

This unique initiative aligns employees' passions with their professional work, creating a deeper sense of purpose. 

Additionally, Patagonia has embraced a flexible work environment, encouraging employees to enjoy the outdoors and maintain a healthy work-life balance. By allowing employees to contribute to causes they care about, Patagonia has cultivated a workplace that fosters loyalty, purpose, and high morale.

4. Spotify’s parental leave and diversity initiatives

Spotify has implemented some of the most progressive parental leave policies in the industry. The company offers six months of paid parental leave to all parents, regardless of gender, providing flexibility for employees to bond with their new children. This policy demonstrates Spotify’s commitment to supporting employees’ personal lives, which positively impacts morale and retention. 

Moreover, Spotify has launched multiple diversity and inclusion initiatives aimed at creating an inclusive workplace. Programs like “Spotifamily,” which focuses on ensuring a welcoming environment for all employees and various mentorship opportunities for underrepresented groups, have helped Spotify foster a culture of respect, trust, and equality. By making employees feel valued for who they are, Spotify has successfully boosted morale and engagement across the board.

These expanded examples showcase how companies are creating meaningful and positive work environments that improve employee morale and contribute to long-term productivity.

How Empuls supercharges employee morale and productivity

Empuls transforms the way companies approach employee morale and productivity by creating a work culture where recognition, rewards, and meaningful benefits are at the heart of engagement. 

It’s not just about rewarding performance—it’s about building a workplace where every employee feels valued, motivated, and connected to the bigger picture.

• Peer-to-peer recognition: Empuls makes employee recognition an everyday experience. Whether it's a small accomplishment or going above and beyond, employees can celebrate each other’s achievements. This fosters positivity and strengthens team morale, making employees feel valued.
• Tailored rewards: Empuls offers personalized perks and exclusive discounts on everything from electronics to wellness programs. These rewards show employees that their well-being is a priority, boosting loyalty and helping them maintain a healthy work-life balance.
• Early wage access: Financial stress can impact productivity, and Empuls helps alleviate that by offering employees early access to their earned wages. This feature allows them to manage unexpected expenses, reducing stress and allowing them to focus better at work.
• Employee well-being: Empuls empowers employees with perks like fitness allowances, mental health support, and home office upgrades, ensuring they feel supported in every aspect of their lives. When employees feel cared for, their productivity increases naturally.

In short, Empuls empowers companies to create a culture of recognition and support that keeps morale high and productivity soaring, ensuring your workforce feels valued every step of the way.

Conclusion: Sustaining morale for long-term productivity

Boosting employee morale isn’t a one-time fix; it’s an ongoing effort that requires attention, commitment, and a clear understanding of what makes employees feel valued. Companies that prioritize employee well-being foster a culture of inclusivity and encourage open communication often see the benefits reflected in higher productivity, stronger employee engagement, and lower turnover rates. 

When employees feel motivated, recognized, and connected to the company’s goals, they naturally contribute more and perform better. Sustaining high morale involves continuously listening to employees, addressing their concerns, and creating a workplace where everyone feels appreciated and empowered.

By implementing strategies like recognition programs, flexible work policies, and well-being initiatives, businesses can create an environment where employees thrive, leading to long-term productivity and success.

FAQ's