Measuring Employee Morale and Developing a Plan of Action

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Employee morale is not just a business concept; it is essential in driving the business toward success. According to research by Workleap, 69% of employees believe that if they think their efforts are appreciated, they will be more engaged and motivated. If your employees are not motivated enough, your organization will not prosper. Therefore, employee morale is vital in boosting productivity, bringing innovation, and driving the organization’s financial growth. In this article, we will explore the importance of employee morale and how you can measure the same. Also, we will provide some tips on developing a plan of action. 

How Employee Morale Contributes to Business Success

Employee morale is employees’ collective emotional and psychological states within an organization. It tells the employer how much the employee is satisfied, motivated, and mentally healthy. But how will it contribute to success? Let’s find out below:

  • Productivity: If the organization’s employees are content and motivated, they naturally become more invested in their work. They will go the extra mile to complete tasks, meet deadlines, and achieve organizational goals. As a result, productivity will be positively influenced, which will considerably impact the organization’s growth. According to the research by Gallup, highly engaged employees result in a 23% increase in profitability.
  • Innovation: Content employees are more likely to develop innovative and unique ideas. They are focused on their daily tasks and improving processes, products, and services. This culture of innovation can provide a competitive advantage for the organization over its competitors.
  • Customer Satisfaction: When the organization’s employees have strong morale, they’re more likely to provide exceptional customer service. They’ll positively engage with customers, offering guidance on the offered products and services, ultimately leading to increased revenue for the organization.

Let’s look at Google for a moment. The reason behind the success of Google is its strong employee morale. They’ve always put much effort into creating a work environment that’s welcoming and encouraging, sparking a lot of creativity and fresh ideas among their employees. They offer several employee benefits, including free meals, on-site fitness centers, and opportunities for professional development. Google creates an environment where the employees feel motivated and encouraged to work with creativity and full zeal.


Role of Employee Morale in Financial and Functional Leadership

The employee morale should be the top priority for leaders in any organization for the following reasons:

  • Financial Transformation:  Organizations use financial transformation strategies to streamline processes, improve cost management, optimize payment terms, and maximize profitability. All of this will only be possible if your employees have high morale. The motivated workforce will organically drive financial transformation initiatives, which can lead to more successful outcomes.
  • Change Management: Every organization expecting to thrive in the fast-changing business world must embrace change. It could mean hiring a talented team to automate your internal business systems or implementing other improvements. When your employees have high morale, they’re more likely to adapt quickly to these changes, offering creative and unique ideas to drive positive transformations within your business.
  • Process Improvement:  Process improvement heavily relies on active employee participation. A team that boasts high morale significantly increases the likelihood of enhancing processes and overall efficiency, strengthening credit evaluation, and contributing to cost savings.
  • Digital Transformation: The integration of digital technology requires knowledgeable employees who can adopt and integrate new technologies into existing systems in no time. This integration can include anything from digital invoicing to automating organizational processes. When your employees have high morale, they naturally become enthusiastic about learning and adapting to new technology. This, in turn, plays a crucial role in significantly boosting the success of your organization. You can also adapt technology to track your employee’s level of engagement. According to a Gartner analysis, only 16% of businesses use technology to track their workers’ engagement levels.

Critical Considerations to Boost Employee Morale

To boost morale, financial leaders must consider the following strategies:

Alleviating Employee Fears

AI and automation are becoming prevalent these days, which causes the fear of job insecurity among employees. These fears can be addressed by: 

  • Communication: There is a need for open and transparent communication about the role of AI and automation. Financial leaders are responsible for letting employees know that these technologies will increase their efficiency and not replace their roles.
  • Training and Upskilling: AI and automation require training and skills. It’s the responsibility of an employer to provide necessary training to employees. This will reduce their fear of job displacement and boost employee morale.
  • Involvement in Decision-Making: If you want to boost your employee morale, include your employees in decision-making related to AI and automation. This way, they will feel like they are contributing to your business.

A Culture of Continuous Improvement

Making ongoing improvements keeps organizations relevant and ahead of the game, allowing them to grow and adjust. Here’s how you can do it: 

  • Regular Training: The employer must provide regular training to update employees on the latest industry trends and technologies. By doing this, the organization polishes their skills and takes the organization to new heights.
  • Feedback Mechanisms: Every leader in an organization must start taking feedback from their team members and employees to strengthen and refine existing processes and operations. Also, acting on employees’ feedback demonstrates that their input matters.
  • Recognition and Rewards: Businesses must periodically and adequately recognize employees’ hard work by offering them rewards. This will inspire and uplift their motivation and enthusiasm.

Boosting Cross-Functional Collaboration

Ensuring different teams work together is vital to the organization’s smooth operation. Here are some simple ways to encourage this collaboration:

  • Collaboration Tools: To ensure your team is aligned, consider investing in collaboration tools such as project management software, communication platforms, and shared document repositories. These resources will enable your teams to work together more effectively, ultimately enhancing efficiency and saving time.
  • Team Building Activities: To boost cross-functional collaboration, organize team building activities. Teach your employees how to build relationships outside of work.
  • Clearly Defined Goals: When employees aren’t sure about your organization’s goals, they might not deliver the results you expect. In such situations, the organization must clearly communicate and define its goals. 

Fostering a Culture of Caring: Promoting Work-Life Balance

Work-life balance is essential to keep your employees motivated. Here’s how you can help them achieve it:

  • Flexible Work Arrangements: Provide your employees flexibility in timing and working modes. You can give them options like remote work or flexible hours to help them balance their personal and professional lives.
  • Mental Health Support: To help ease the stress and anxiety that come with heavy workloads, consider offering professional mental healthcare support to your employees. Having a conversation and understanding what’s troubling them can make a big difference, but having access to trained professionals can provide additional support and resources.
  • Encourage Vacation Days: Encourage your employees to take time off and unwind, whether it’s a short break or an extended vacation. When they return from their much-needed time away, they’ll feel rejuvenated and ready to tackle their work with renewed energy and a fresh perspective, ultimately contributing to a more vibrant and productive workplace.

How Can Sirius Solutions Help?

As a leading provider of digital transformation, financial transformation, and change management services, Sirius Solutions understands that employee morale is essential in increasing efficiency. We have a team of experts who can help you integrate digital technology and improve your business process. We are very committed to assisting organizations in navigating the modern business landscape. We will help you build highly custom, organization-specific strategies to boost your employee morale.


Undoubtedly, employee morale is pivotal in driving productivity within any organization. Financial leaders must prioritize employee morale by addressing the employees’ fear of AI and automation, promoting continuous improvement, and building an environment that supports work-life balance. These considerations are crucial to developing a solid plan for the new year.