How to Improve Company Morale

Written by: PeopleKeep Team
Originally published on January 27, 2015. Last updated July 9, 2015.

I want you to take a guess - what is the first thing an employer thinks of to increase company morale? Generally, it’s a raise. Why? Many employers feel money is the driving factor of their employees - but they’re wrong. In fact, 85% of Americans are happy regardless of their income. So, is there a way to improve your employee retention and company morale outside of the realm of a raise? Sure there is. I’ve put together six steps to help you and your small business become a shining example of ideal morale.

What is Company Morale and Do I Need to Improve It?How to Improve Company Morale

We all hear about morale, but do you know what it is or why it needs to be improved? Really, it’s pretty simple: It’s the satisfaction and well-being of your employees. So, why do you need to improve it? One word: productivity. When employees feel valued and happy, productivity goes up.

Having said that, below are steps for you to learn how to improve your company morale - let’s get started.

Step 1 - Help Employees Capture the Vision

You’ve got a vision for your small business. Think of it right now. Now, ask yourself, do your employees have the same vision as you? If not, this is your first task.

In order for your employees to even begin to feel they are a part of your business, they too will need to capture the vision you have. Start by telling it to them, then have open discussions about why the vision is important and how it can be achieved.

Step 2 - Show Them You Care

It’s really not difficult to show your employees you care - and the best part is, it doesn’t cost a dime! In other words, as you ask your employees how their day is, how you can help them be the best they can be - all while having a genuine interest. Your employees will begin to see you’re the boss to have.

Step 3 - Look for the Good

Speaking of showing your employees you care, one of the best ways to improve company morale is nestled in a positive attitude - and it’s contagious, too. So, start with yourself. Do you constantly look for the good in your employees? If not, start today.

Even if you have an employee who is performing poorly, your ability to show them their strengths will result in making their weaknesses stronger. Why? Your employees will catch your positive attitude and have an amazing outlook on their job - including their weak areas.

Step 4 - Learn why Benefits Are Essential

As a small business owner, I know benefits is a scary word, isn’t it? But it doesn’t have to be. You can even offer benefits on a budget as a way to improve company morale. How? It’s the little things that count like affordable health benefits, dress-down Fridays, fun hat day, or rotating leaving an hour early during the week. Each of these benefits become part of your small businesses culture and have an impact on the morale of your employees.

Step 5 - Promote Employees

Talk about confidence, don’t hire management from outside of your small business, promote from within. It makes the most sense, too. Employees who have shown their dedication and hard work deserve to be promoted, and, it’s a huge boost to employee morale, too.

Step 6 - Make Time for Fun

If you really want to know how to improve company morale, remember one word: fun. Don’t be scared to have a little bit of fun with your employees. It loosens them up, and more importantly, it loosens you up. Of course, there is moderation in all things, so be sure to have fun when appropriate. It’s a great way to put a smile on your employees’ faces and will even improve productivity as fun is a stress reliever.


Each of these six steps on how to improve company morale are not only useful to your small business, they’re essential. Without high company morale, it’s difficult for you and your employees to remain productive, upbeat, and positive. Remember:

  • Involve your employees in your vision

  • Show employees you care

  • Point out employees’ strengths

  • Make benefits a key part of your business

  • Promote your hard-working employees

  • Don’t leave out the fun in work

How have you improved your company morale? Or, do you have any other suggestions to add to our list? Comment below and let us know.

Originally published on January 27, 2015. Last updated July 9, 2015.


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