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Small employers can boost employee morale without breaking the bank
Small businesses are often big on ideas, yet short on cash. With limited funds for payroll and office amenities, it can be difficult to keep staff motivated and happy. But it's not impossible. Experts say that with a little creativity, employers can keep their teams inspired without breaking the bank.
"First and foremost, you must see your employees as partners," says Joanne Sujansky, founder and CEO of Key Group, a consulting firm in Pittsburgh, Pa., that helps companies become what she calls vibrant entrepreneurial organizations, or VEOs. "Let your team know that you're in this together. Help them understand the vision of your organization, and be clear on exactly how each of them fits into the picture and makes an impact."
Harriet Meyerson, president of The Confidence Center in Dallas, agrees that morale-boosting is largely about how employees are treated.
"I refer to morale-boosting efforts as the psychological paycheck," says Meyerson, who acknowledges the work of noted psychologist Abraham Maslow. Maslow theorized that human needs are hierarchical. At the base is the need for security, which employers provide through wages and insurance. Beyond security, a person needs social acceptance, respect and self-actualization. Meyerson says employers can meet these secondary needs without spending much (or any) money.
Social acceptance. Create a workplace where employees can get to know each other beyond their professional roles. Host monthly potluck lunches in the breakroom. Enforce a "no gossip" rule. Create protocols that give employees a means to resolve their differences. All these techniques will reinforce relationships and help coworkers feel socially accepted.
Respect. Reward and recognize employees often. "This needs to happen year-round," says Meyerson. "It's like eating; it's the food that fuels motivation." Get creative with your awards. Meyerson suggests handing out "Crunch Awards" to employees who have helped others in a crunch. Present the certificate with a Nestlé Crunch bar.
Adds Sujansky: "Celebrate every good thing that happens. I don't care if you come in with balloons or announce that a pizza is coming. It gives a feeling of joy, lightness and renewal, which can mean so much at a small business or startup, where the atmosphere is often hectic."
Self-actualization. Employers who encourage personal and professional development are on the right track. It shows employees that you see the whole person. They're not just cogs in a wheel. Professional development could include learning a new software program or how to be an effective participant in meetings. Personal development might include confidence-building exercises or teaching goal-setting skills.
"You can work the training into your staff meetings," Meyerson says. "It's also another opportunity to reinforce social acceptance because your employees are interacting and learning together."
Sujansky lists these other low-cost (or no-cost) ways to keep the morale high:
- Hire smart. Attitude is just as important as skill level. "One employee's bad attitude can spoil the bunch," she says. Take the time to get to know job candidates. Schedule multiple interviews and pay attention to behavioral cues.
- Encourage innovation. Ask employees "what if" questions to encourage entrepreneurialism. If an idea isn't feasible, be sure to explain why the company can't bankroll it and encourage them to find alternatives.
- Be a model. Lead by example with an upbeat attitude. Be accessible and visible to your staff during working hours.
- Understand the value of work-life balance. "There is no reason why you cannot flex a bit if you're a small business owner," Sujansky says. "If your team had to work into the night to finish a report, let them sleep in the following day or tell them: 'This Friday is all yours. See you Monday!'" Just remember: The leniencies you grant now should be ones that you can continue to practice as your business grows.