Organizational Wellness

13 Ways to Improve Employee Morale (and Track Its Growth)

Last Updated Mar 24, 2025

Time to read: 10 minutes

It’s every HR manager’s dream to be greeted in the office by a buzz of energy and enthusiasm instead of gloomy faces and Venti quad-shot Americanos. And this doesn’t have to stay a dream. Creating a workplace environment that cares for employee morale can help you raise those spirits — and profits — is totally achievable!

A workplace that supports employee morale enjoys higher levels of productivity, engagement, and creativity. Here, you’ll gain the skills you need to prioritize employee morale with these 13 expert strategies for improving employee morale and wellbeing.

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What Is Employee Morale?

Employee morale reflects the overall attitude, satisfaction, and wellbeing that employees experience in the workplace. The difference between high and low morale is clear: high morale fosters a vibrant, positive environment where employees feel motivated, valued, and connected to their work, while low morale can lead to disengagement, decreased productivity, and higher turnover.

Infographic explaining employee morale, contrasting high and low morale impacts on productivity and engagement, and emphasizing the importance of maintaining high morale for a resilient and high-performing workforce.

When morale is high, employees bring energy and dedication to their roles, which supports collaboration, productivity, and a sense of shared purpose. On the other hand, low morale can drain that energy, affecting both individual performance and team dynamics.

Cultivating strong morale is essential for building a resilient, high-performing workforce where employees feel supported and committed to the organization's mission.

The Factors That Influence Employee Morale

Just like your office plants, employees doesn’t thrive on neglect! Morale is fostered by a wide network of factors, both within and outside the organization:

Internal

Internal factors are the things you can control in your workplace. These include:

Leadership style: Is your management style coercion-based or more relaxed? An aggressive or toxic manager can easily tank employee morale.
Company culture: This is the personality of your organization. A positive workplace culture can increase employee engagement, according to a survey published in the International Journal of Environmental Research and Public Health.
Work environment: Is your office a fun, relaxed place to work at? Or is everyone so stressed out that asking questions is a no-no? A hostile work environment can decimate employee morale, so much so that over 80% of employees are willing to quit because of it.
Recognition and rewards: Are your employees’ efforts acknowledged, or do their achievements get ignored?

External

External factors are the wild cards that you typically can’t control that still impact your workforce like:

Economic conditions: When the economy is slipping, it can impact job security and overall financial stability. About one in four employees agree that financial anxiety decreases their productivity at work, according to a 2024 SoFi survey.
Industry trends: It’s easy to have high spirits when your industry’s booming. But when it’s not, it can plant seeds of job insecurity in anyone’s head — even when they’re crushing it.
Personal life factors: Your employees are humans first. Personal issues, family responsibilities, and life events can spill over into work life.
Social and political climate: Broader social issues can weigh heavily on everyone’s minds, like elections, public health crises, and international conflicts.

Why Does Employee Morale Matter?

Employee morale goes far beyond friendly vibes among coworkers. High morale can take your organization from routine task-doing to a powerhouse of innovation, drive, and performance — and make work a place people genuinely look forward to each day.

Let’s talk impact: Over 90% of employees believe their workplace should prioritize their wellbeing, according to the American Psychological Association. That’s nearly everyone on your team saying, “We want to know you care.”

But fostering high morale isn’t just about making work enjoyable — it’s a productivity game-changer. Companies with happy, engaged employees are around 10% more profitable, reports a study from EU University. When you invest in employee morale, you’re fueling their commitment, creativity, and drive to go all-in.

High morale is also the antidote to disengagement. When employees see a bright future filled with growth and opportunity, they bring more energy and focus to their roles, according to a Harvard Business Review study. And in today’s landscape, where two-thirds of employees feel disengaged at work, according to a 2022 Gallup survey, prioritizing morale isn’t optional — it’s essential.

A workplace with strong morale is one where people are connected, motivated, and ready to give their best every day. Boost morale, and watch your team reach new heights.

How to Improve Employee Morale

So, what can you do about employee morale? Fortunately, there’s quite a bit!

Leadership and Communication

You know the saying: It starts from the top. And nothing could be truer when it comes to employee morale. If your workers notice that leadership is stressed out, uninterested, or not being truthful, they’ll have a hard time keeping their spirits high.

Try these three strategies:

Transparent and open communication: Secrets are no fun — especially in the workplace. Transparency is the name of the game when it comes to how to boost employee morale. Try implementing regular town hall meetings where you share company updates, create feedback mechanisms that actually work, and give your employees a voice.
Strong leadership: Be the kind of boss that employees want to follow, not run away from. This means being supportive, approachable, and fair. Set clear expectations. Your team isn't made up of mind readers (unless you've hired some very unique talent).
Recognitionand appreciation: Who doesn't love a good pat on the back? Recognition is a great way to easily and quickly boost employee morale. Implement an employee recognition program that goes beyond just a participation certificate. This could be anything from a Wall of Fame for outstanding achievements to a points system where employees can earn rewards.

Employee Development and Growth

It’s hard to stay motivated and engaged when you’ve been doing the same thing over and over for years. You know when you're in a rush and the bank teller seems to be trying their hardest to work slowly? Yeah, that's what happens when employees are unmotivated. Keep your employees engaged with:

Career developmentprograms: Nobody wants to feel like they’re stuck in a career hamster wheel. Give your employees clear paths to professional development. Set up mentorship programs, offer training sessions, and show your team that they have room to grow.
Skill enhancement: Help your employees stay ahead of the curve with opportunities to learn new skills. This could be through workshops, online courses, or even cross-department training.
Performance feedback: Feedback shouldn't be a once-a-year ordeal that everyone dreads. Make it a regular, constructive part of your workplace culture. Offer frequent check-ins where you can discuss progress, set goals, and address any concerns.

Workplace Culture and Environment

A positive work environment can improve employee morale and employee commitment levels, according to a study published in Frontiers of Public Health. A strong workplace culture can look like:

Positive and inclusive culture: Everyone should feel welcome at your company, regardless of their background. Implement diversity and inclusion initiatives that go beyond just ticking boxes.
Team building activities: No, we're not talking about trust falls (unless that's your thing). Organize social events, collaborative projects, and team outings that help your employees bond. A team that plays together, stays together — and works better together too.
Work-life wellness initiatives: Show your employees you care about their life outside of work. Offer flexible work arrangements, remote work options, and generous PTO.
Employee mental wellbeing programs: Emotional health matters. You can provide resources for stress management, launch a corporate meditation program, or provide subscriptions to sleep tracking apps.

Compensation and Benefits

Money isn’t everything, but it does help a lot. No matter how awesome a place to work your company is, your employees are bound to get demotivated if competitors are paying double their salaries for similar positions. Try these strategies:

Competitive salaries: Money talks, but it doesn't have to shout. Conduct regular salary reviews and ensure your compensation packages are in line with industry standards. Fair pay goes a long way in boosting morale.
Comprehensive benefits package: Think beyond just health insurance (although that's important too). Offer a well-rounded benefits package that includes retirement plans, paid time off, and employee assistance programs.
Performance-based bonuses and incentives: Reward your high performers. Implement a system of bonuses and incentives for employees who go above and beyond. It's a great way to motivate your team and show that hard work pays off.

Measuring Improvements in Employee Morale

You've implemented some fantastic morale-boosting strategies, and you're pretty sure you can feel the positive vibes in the air. But how do you know if you're really making a difference? That's where tracking comes in.

Employee Morale KPIs

Key Performance Indicators (KPIs) help you understand what's working, what's not, and where you need to focus your efforts. Let's break down some of the most important ones:

Employee Net Promoter Score(eNPS): Think of eNPS as the "would you swipe right on this company?" metric. It measures how likely your employees are to recommend your company as a great place to work. A high eNPS means you've got a team of workplace cheerleaders on your hands.
Turnover rate: This is the rate at which employees leave the company. A high turnover rate means that it’s time to take a closer look at your morale strategies.
Absenteeism rate: A high absenteeism rate can be a red flag for low morale, burnout, or disengagement. It's like the workplace equivalent of a person ghosting on a date. If it happens too often, something's definitely up.
Employee satisfactionand engagement surveys: Use regular surveys to gather direct feedback on various aspects of employee experience. They give you direct feedback on various aspects of the employee experience, from job satisfaction to work-life balance.
Productivity metrics: Are your sales targets being hit? Projects completed on time? Tracking relevant productivity indicators can help you see the link between morale and performance.
Retention rate: This is the "they like me, they really like me!" metric. A high retention rate means you're doing something right in keeping your employees happy and engaged.
Internal promotion rate: A healthy internal promotion rate shows that you're providing opportunities for growth and development. It's a sign that your employees see a future with your company (and that future doesn't involve being stuck in the same position for eternity).

Ways to Gather Employee Morale Data

Now that you know what to measure, let's talk about how to gather this golden nugget of information. Here are some tried-and-true methods:

Employee surveys: They can help you gauge employee satisfaction, identify areas for improvement, and even uncover hidden issues you didn't even know existed. Just remember, surveys are only as good as the questions you ask and the actions you take based on the results.
Pulse checks: These short, frequent surveys help you keep a finger on the pulse of your company's morale. They're great for catching potential issues before they turn into full-blown problems. Plus, they show your employees that you care about their opinions more than just once a year.
One-on-one meetings: There's nothing quite like a good old-fashioned face-to-face chat. Regular one-on-ones give employees a chance to discuss their concerns, share feedback, and feel heard.
Performance reviews: While traditionally focused on, well, performance, these reviews are also golden opportunities to discuss morale. Use this time to dig deeper into any factors that might be impacting an employee's performance or job satisfaction.
Exit interviews: When employees leave, they often take valuable insights with them. Exit interviews are your chance to capture that information and use it to improve.

Leveraging Wellness to Boost Employee Morale

Employee morale is the heartbeat of your organization, influencing everything from productivity to retention. By implementing strategic measures to improve morale and diligently tracking its growth, you're laying the foundation for a vibrant, engaged workforce. Remember, a happy team is a productive team, and the benefits ripple through every aspect of your business.

High employee morale and comprehensive wellness programs go hand in hand. When you prioritize your team's wellbeing, you're creating a resilient, motivated workforce. Wellness initiatives can directly address many of the factors that influence morale, from stress management to work-life wellness. This helps foster a positive work environment where employees feel valued and supported.

Ready to take your employee morale to the next level? Speak with a Wellhub Wellbeing Specialist today about creating a tailored wellness package for your organization.

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