How to improve employee morale and why is it important? Check out this article to find out the answer to these questions, as well as our easy tips.

Employee morale is the key to success, and the leading companies in the world know this. But does yours?

Even modest turnover rates can cost a company a lot of money, in fact, the cost of replacing an employee can range from one-half to two times the employee’s annual salary. To reduce these costs and turnover rate, it’s crucial to improve employee morale.

By boosting employee morale, companies can increase the productivity of their employees, save money and resources that would otherwise be spent on hiring new staff, improve their reputation, and this is just the tip of the iceberg.

So how to improve employee morale at your company and thrive through it? Stick around to find the best and easy methods for improving employee morale, reducing turnover, and riding off into the sunset with your team.

The Negative Effects of Low Employee Morale and High Turnover

Employee morale is directly connected to employee turnover with deeper roots than you might think. However, to understand that connection, it’s important to first break down these terms.

So, employee morale refers to the overall mood, outlook, and satisfaction levels of employees in the workplace. It reflects how employees feel about their work, colleagues, supervisors, and the company as a whole. If an organization has high morale, it means it has successfully created a space for employees to be motivated, engaged, and committed to their work. Meanwhile, low morale suggests that employees may be disengaged, unmotivated, and dissatisfied with their workplace and what they’re doing.

Employee turnover, on the other hand, is the rate at which employees leave a company and are replaced by new hires. It is often expressed as a percentage of the total workforce. High turnover can be a sign of poor employee morale, as employees who are unhappy with their jobs are more likely to leave their organization. It can also be a result of other factors such as low pay, poor working conditions, lack of career advancement opportunities, and a toxic work environment.

Therefore, the higher the employee morale at your company is, the lower your turnover will be, which is exactly what every organization is thriving for these days. The thing is, low employee morale and high turnover can have significant negative impacts on both the workplace and the organization as a whole.

Here are some examples that can give you an idea about how exactly they can harm your company or organization:

  • Decreased Productivity: Employees with low morale are often less motivated, less engaged, and less productive, which can harm the organization’s output and profitability. High turnover rates can also disrupt workflow and create a sense of instability within the workplace, further reducing productivity.
  • Reduced Employee Engagement: Low morale and high turnover rates can lead to disengaged employees who may not be committed to the organization’s goals and values. This can result in reduced collaboration, communication, and innovation within the workplace.
  • Increased Costs: High turnover rates can be costly for organizations, as it requires time and resources to recruit, hire, and train new employees. Additionally, low morale can lead to absenteeism and presenteeism, which can increase costs associated with sick leave and reduced productivity.
  • Negative Workplace Culture: Low morale and high turnover can create a negative workplace culture characterized by low trust and reduced employee satisfaction. This can lead to increased conflict, reduced teamwork, and decreased job satisfaction.
  • Reduced Customer Satisfaction: Employees with low morale or high turnover may be less likely to provide high-quality customer service, resulting in reduced customer satisfaction and retention. This can have a negative impact on the organization’s reputation and profitability.

7 Ways to Improve Employee Morale

No need to panic! Really! There are various proven and easy ways to boost your employee morale, and now that you understand how important high morale is, we’re ready to share the best tips to get you going!

1. Create A Recognition Culture With Rewards

One of the most effective ways to improve employee morale is to recognize and appreciate employees for their contributions. This can be done through verbal or written recognition, bonuses, rewards, or other forms of appreciation that make employees feel valued and recognized for their hard work.

A terrific and fun way to build a culture of recognition, as well as encourage peer acknowledgment, is by joining platforms like Lucky Carrot. With their space created for organizations, employees can send a carrot to each other to encourage and celebrate fellow professionals. The carrots can be redeemed into branded gift cards and/or fun activities. See? Easy, fun, engaging, and totally rewarding!

2. Support Growth and Development

Employees who feel that they have opportunities for growth and development within the organization are more likely to be motivated and engaged. To support their growth, you can arrange training programs, various courses, online educational games, and mentoring, or by offering employees the opportunity to work on new and challenging projects. Not only will be beneficial not only for your employees, but also for your organization, since they will use their new and improved skills in your organization’s favor.

3. Foster positive workplace relationships

Positive workplace relationships can have a significant impact on employee morale. Encouraging teamwork, collaboration, and creating a culture of mutual respect can help build positive workplace relationships. A good way to help your team bond is to occasionally suggest teambuilding activities, such as trips, happy hours, Friday fun, etc.

4. Encourage Work-Life Balance

According to statistics, 20% of employees have quit their job for a better work-life balance, making this a top reason for turnover. Employees who feel that they have a good work-life balance are more likely to be satisfied and motivated at work, so therefore they’ll stay with an organization longer.

Encourage employees to take breaks, provide flexible work schedules or remote work options when possible, and encourage employees to take time off to recharge and refresh.

The happier an employee is with their work-life balance, without having to worry about picking up their kids from school or going to the doctor’s appointment during working hours, the more focused they’ll be at work.

5. Provide Competitive Compensation and Benefits

This is an effective way for employers to attract and retain top talent, as well as increase employee motivation and enhance a company’s reputation. Benefits packages can include various perks, such as health insurance, retirement plans, gym plans, and paid time off, to name just a few.

6. Communicate Effectively

When employees don’t know what’s expected of them, they will find their everyday work life dull and become indifferent toward their job. These, in return, will result in poor performance and dissatisfaction from both sides. This is why communication is essential for maintaining positive work culture and improving morale. This includes providing feedback, clear expectations, and regular updates on the organization’s goals and progress.

7. Create a Positive and Safe Work Environment

Providing a positive and safe work environment can go a long way in improving employee morale. This includes ensuring the workplace is clean, safe, and comfortable, and creating a culture that values employee well-being and safety. It’s about setting equal rules for everyone, and encouraging diversity and equality no matter gender or the race of your employees.

Besides, you can also offer free snacks and coffee to encourage your team to take a moment to relax, and even have separate sleeping or gaming rooms for them to loosen during the day.


It’s important to grasp the importance of employee morale and its connection to employee turnover. Low morale and high turnover can negatively impact productivity, employee engagement, workplace culture, and customer satisfaction, leading an organization downhill. However, there are various ways to improve employee morale, such as recognition and rewards, growth opportunities, positive workplace relationships, work-life balance, and competitive compensation and benefits packages.

By implementing these strategies, you can create a motivated and engaged workforce, reduce turnover rates, and thrive as an organization. Remember, investing in your employees is investing in the success of your company.