How Boosting Employee Morale Improves Your Company’s Bottom Line

Congratulations, you’ve filled all your staff postings, and now, you’re just waiting for the company’s success to come forth. Unfortunately, business isn’t that simple. Studies suggest that employee retention is much more challenging than recruitment. In the same way that workers must keep their employers happy with their terrific output, managers must constantly consider employee morale, satisfaction, and engagement.

Employee morale conveys a worker’s overall attitude toward their job: how satisfied, motivated, and enthused they are. Morale has become more crucial since research confirms that happy employees are better employees. Oxford University reveals happier employees work faster and more efficiently. Similarly, the University of Warwick reports they work harder, too. For example, after investing in employee support and satisfaction, Google’s productivity rose by 37%.

Varying motivations drive employees. In October 2022, the National University of Singapore’s Institute of Policy Studies surveyed 1,010 employed Singaporeans aged 21 to 84 who listed as many as 15 aspects that affect their attitude in the workplace. Career achievement, growth, job autonomy, job security, fair compensation, and work conditions were some of their motivators.

With today’s economy and Singapore’s seemingly persistent burnout problem, employers and talent retention specialists must look into the factors that affect employee morale to build a stronger foundation for their team.

1. Career security and mobility are big morale boosters. According to JobStreet’s What Jobseekers Wish Employers Knew: Unlocking the Future of Recruitment report, career stability is the top long-term motivator for Singaporean workers. Around 71% of respondents say they want a “stable job with a good work-life balance.” That said, the possibility of assuming leadership roles is also a morale booster – which, consequently, contributes to their impetus to stay with a company.

What you can do: Set up career paths and career ladders to help your employees progress in your organisation. By laying out their potential prospects with your company, you can assess which areas they’ll need further training in to achieve the next step. Seeing a plan for them also assures talent that you invest in them and see a future with them in your company.

2. Workplace relationships inspire talent to keep working. As an employee’s tenure lengthens, factors, such as financial compensation, matter less. Based on the Future of Recruitment report, experienced talent care more about their relationships with their superiors and colleagues. A study by data collection platform Qualtrics confirms this. After surveying 500 Singaporeans, they learned that confidence in a company’s senior leadership team was a prime driver for job satisfaction.: They want managers who can act on work-related issues.

What you can do: Improving workplace connections can be as simple as holding regular company mixers and team-building events. Setting up mentorship programmes could also create a better relationship between line managers and their teams. More importantly, establishing a safe environment for communication and feedback also helps foster respect among colleagues and managers.

3. Upskilling, reskilling, and other learning opportunities assure employees of their future in your company. While career advancement is a significant stimulus behind employee morale, it’s not the only measure of growth employees look for in their jobs. The same Qualtrics survey also states that Singaporean workers believe proper training is a key reason behind their job satisfaction. Similar to the earlier factors of workplace relationships and career mobility, training tells employees their employers support them. It makes the latter feel more appreciative of their company and, likewise, validates their future with the organisation, thus improving retention rates.

Skilling also benefits both the employees and employers. A Wharton report states that investing in your team’s professional development leads to increased job satisfaction, motivation, productivity, and innovation, as well as better loyalty, boosted collaboration, and enhanced career prospects.

What you can do: Singaporeans understand they need to reskill and upskill to stay relevant in today’s job landscape, but not everyone knows how. Conduct proper onboarding, establish a mentorship system, and hold regular workshops. Create a standard for work-based learning. Have a company-funded programme to send high performers or unicorns back to school for further training. Remember not to focus on solely technical skills but to also arrange learning opportunities on soft skills.

4. Employee empowerment and engagement push your team to do better. No one likes a micromanager. Emphasising your trust in your team’s capabilities makes them feel more effective – hence, more fulfilled in their roles. Hiring managers play a significant role in employee empowerment since it is rooted in recruitment. Hiring high performers or potential high performers you can train to be skilled and confident in making the right decisions for their functions is paramount.

What you can do: There are many ways to boost employee engagement. If your organisation is an SME, you could have an open-door policy, hold regular one-on-one meetings, and be flexible to your employees’ needs. For bigger companies, highlight the importance of having a tight-knit relationship between supervisors and subordinates. Microsoft research says that teams are more engaged and perform better when managers effectively support and communicate with their direct reports.

5. Purpose fuels your employees’ passion for work. It is a well-known fact that millennial workers are cause- and purpose -driven. They love it when they know the company’s bottom line, the big picture, and how they can contribute. But apparently, this motivation exists across generations. Dr Laurel Teo, a researcher in the aforementioned NUS study, states: “When you find meaningful work, and you find fulfilment, it helps you to be motivated to pursue your job further, improve yourself in your career, and also to stay longer in the job as well.”

What you can do: Skills platform Mindtools lists different ways you can help your people discover their purpose in your company. You can start by writing an inspiring, goal-oriented mission statement. Be clear on how each employee’s role contributes to the achievement of that goal. Matching people’s personal drivers with your organisational aims can also motivate your workers further. Don’t forget to focus on your team’s strengths and always encourage positivity in the workplace.

6. Work-life balance will sustain employees in the long run. Burnout continues to plague the Singaporean workforce, which is likely why, based on the Future of Recruitment report, poor work-life balance is the second reason Singaporeans do not stay with a company. Likewise, a solid harmony between professional and personal lives is a top motivator for most employees.

JobStreet’s Laws of Attraction study reveals that 58% of over 7,000 respondents want a reasonable number of annual workdays while 50% want to stick to a five-day workweek versus a compressed four-day version. Other studies also linked work-life balance to job loyalty.

What you can do: A quick way to promote work-life balance is to encourage employees to take occasional breaks. Remind them of their leave allowances, and even offer flexible work arrangements to those who want (or deserve) them. While setting boundaries is ultimately the worker’s prerogative, it wouldn’t hurt if encouraging official sign-off hours comes from the administrative perspective. Companies should also set a good example by encouraging leaders to demonstrate healthy work-life integration.

7. Workplace culture, efficiency, and administration let employees focus on their work. The NUS study reports that workplace ethics and work conditions are also important considerations for boosting employee morale. Company culture can influence how employees feel about the company, and a terrific one would inspire your team to want to work every day.

Meanwhile, according to a report by intelligent automation solutions provider Laiye, 91% of Singaporean employers divulged that inefficient office tasks are a primary obstacle to productivity and engagement. Employees prefer companies that make it easy for them to deliver their duties, offering streamlined processes and the proper tools – from hardware to training.

What you can do: Fostering an environment of respect and self-improvement can do so much to reduce office friction. According to Forbes, effective two-way communication is vital for maintaining morale. Company personnel who feel their voice is being heard are almost five times more likely to feel empowered to do their best work.

Other ways to instil a positive workplace culture are to be transparent, recognise contributions, promote a team atmosphere, and exchange feedback.

8. Recognition, financial compensation, and other incentives make talent feel appreciated. Incentives are excellent motivators. While reasonable financial compensation is the top reason Singaporean job seekers sign with a company, it does not fuel employee morale in the long run. A study by Great Place to Work Singapore shows that workers believe personal recognition would encourage them to produce better work more often. They like affirmation, feedback, and reward.

Other incentives could be flexible working arrangements, which, according to the Ministry of Manpower, have the greatest impact on staff retention.

What you can do: Paying your employees competitive rates based on their skills and the current economic environment is a given, but some incentives don’t have to be so expensive. According to Harvard Business Review, many companies boost morale via monetary means, but “symbolic awards” are more successful at increasing intrinsic motivation, performance, and retention rates. They can be as simple as giving loyalty tokens to long-term employees and offering periodic merit awards.

For instance, in 2021, Siemens Singapore launched a platform called STAR (Share Thanks And Recognition) that allows managers and colleagues to appreciate each other by writing an e-card, giving STAR points that employees can exchange for gifts and vouchers, and awarding cash bonuses. According to Winnie Chik, Siemens ASEAN’s head of talent acquisition, the instant recognition and appreciation kept staff motivated. It also propelled Siemens 29 places up on Singapore’s Best Employers 2021 list.

Don’t hesitate to consult your employees on the type of recognition they find most meaningful, too!

Study your organisation and do an audit on which factors you lack. Ask for feedback from your workers via interviews, consultations, or surveys. You can try any of the recommendations above to see if they can help boost employee morale. Remember though, the aforementioned factors don’t always work in silos. They usually spill over and influence each other.

For example, a company with a commendable organisational culture will likely encourage work-life integration and promote relationship-building communication. Meanwhile, a company that puts a premium on stability and mobility will likely offer substantial growth and learning opportunities.

Now that you know how to boost employee morale in your company, always stay in the know when it comes to your team’s wants and needs. For starters, you can download JobStreet’s Future of Recruitment and Tech Talent: Revealed reports. You can also partner with us to get tips, insights, and access to Singapore’s top talent.

What is the importance of boosting morale in the workplace? Employee morale refers to a worker’s attitude, eagerness, and satisfaction toward their work. Studies show that highly motivated employees are more engaged, loyal, productive, and creative – which, all consequently lead to a better bottom line for your company.

How do you boost employee morale? First, you must figure out which areas your company is lacking in. Are people tight-lipped? Do you ignore accomplishments? Are your tools obsolete? You can make your people happier in the workplace by promoting an open, fun, and engaging workplace culture, upgrading your tools and talent with appropriate technology and training, and providing the right incentives.

You can ask your team for feedback to learn what will make them happier and more motivated to work.

How do you measure employee morale? General observations, company surveys, employee counselling, one-on-one meetings, feedback channels, and exit interviews can offer a measure of where your employees are at, morale-wise.