Employee Morale

Updated on April 12, 2024
Article byShrestha Ghosal
Edited byShrestha Ghosal
Reviewed byDheeraj Vaidya, CFA, FRM

Employee Morale Meaning

Employee morale is a concept in Human Resource Management that involves the evaluation of an employee’s job satisfaction and the level of engagement in the specific job role. An increased morale will help an employee stay motivated in the workplace and ensure their commitment to the organization.

Employee Morale

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An organization must work towards enforcing a positive work culture. Management must take initiatives to enhance morale and increase efficiency and productivity. Favorable work will prompt employees to enhance their performance and contribute to organizational growth.

Key Takeaways

  • Employee morale is the measure of an employee’s satisfaction and engagement with their job and the organization. It reflects the employee’s general attitude and outlook toward the company.
  • Factors impacting this morale include the type or nature of work an employee performs, the work culture in the organization, and the work-life balance. An employee’s physical and mental state, age, and educational qualifications may also impact their morale.
  • It can be measured with the help of instruments such as conducting periodic surveys, tracking employee performance, and monitoring any changes in the employee’s attitude.

Employee Morale Explained

Employee morale is a crucial concept in human resources (HR) that signifies an employee’s contentment, attitude, and overall perception toward the organization. It impacts employee productivity, efficacy, and commitment to the job. A positive environment in the workplace aids employees in navigating through daily work stress and anxiety. It boosts their performance and improves their outlook on the company. 

Motivated employees are more likely to stay loyal to the company and reduce the attrition rate. They are also less likely to resort to absenteeism as a boost in morale increases employee engagement. When employees are encouraged to express their ideas and opinions freely, the communication barriers dissolve, resulting in more excellent bonding between employees and the management. Furthermore, if employers are honest, transparent, and empathetic towards the employees, the employees to contribute positively to the organization, thus driving its growth and profitability.


The factors impacting this morale are:

  • An employee’s morale can be significantly affected by the nature or type of work they are performing in the company. If the employees feel stimulated by their work, they may feel energized, resulting in high employee morale.
  • The attitude of the employer, management, and supervisor toward the employees impacts their morale. A positive attitude and work environment will increase morale. If the leaders are empathetic, the employees will be more valued in the company.
  • A healthy work-life balance contributes significantly to an employee’s morale. If employees feel well-rested and rejuvenated, they are more likely to give better performance. However, an unhealthy work-life balance will result in low employee morale.
  • The employees’ mental and physical wellness also impacts their morale. An unsound mind and body can hamper productivity and efficiency and cause a decline in morale. Other factors, including age, years of experience, educational qualifications, and work culture, can influence an employee’s morale.

How To Measure?

The techniques to measure this morale include the following:

  • Employers can conduct employee morale surveys to measure their employees’ morale. They may carry out such surveys periodically to track the morale over a certain period. Employers can use the feedback received from the employee morale survey to improve their policies and work environment.
  • The management can track an employee’s performance to evaluate their morale. A consistent dip in performance and productivity can reflect a decreasing morale. In such a scenario, employers can organize a conversation with the employee and discuss the matter with them.
  • This morale can be assessed by noticing changes in an employee’s enthusiasm for their work. If the employee shows a general lack of interest over time or appears to be less motivated than usual, it may be a sign of employee dissatisfaction. 

How To Boost?

Some ways to boost employee morale are as follows:

  • Employers must try to align the employees with the company’s values and ethics structure. They must clearly communicate the organizational goals and objectives to the employees and help employees adjust to the company’s vision.
  • The management must promote clear and open communication at all levels of the organization. There must be transparency and honesty among employees and the management.
  • The business must allow employees to reach out with their feedback. They must incorporate that feedback while drafting policies for the organization.
  • Team-building exercises and activities can stimulate a sense of belonging in the company. It helps in bringing employees closer together and enhancing teamwork.
  • A company must provide appropriate recognition to employees. If employees feel that their hard work is being acknowledged and appreciated, they get the drive to perform better. A performance-based reward system may also help employees feel valued in the organization, which increases satisfaction among employees.


Let us study the following examples of employee morale to understand this concept:

Example #1

Suppose Ryan owns a small bakery named Ryan’s Cake Shop. The bakery has fifteen employees who handle various tasks, like baking, managing the store, handling customers, providing deliveries, and managing the accounts. Ryan ensures that every Friday, the employees participate in team-building activities. He also clearly communicated the work hours and rarely asked the employees to work outside of the work hours. Ryan offers performance-based incentives to his employees and maintains a positive work environment. As a result, his employees feel satisfied with the work culture, and they contribute positively to the workplace.

Example #2

In April 2023, Meta Platforms Inc. carried out a round of job cuts, which negatively impacted employee morale. The engineers and tech teams were affected by the layoffs after Meta announced a second round of layoffs in March. The big tech company also declared that the job cuts will occur in batches over an extended period and affect 10,000 employees worldwide. The employees were deeply frustrated with this decision and expressed their resentment toward the management. Meta’s first round of layoffs witnessed a decrease of 13% of its workforce in the company’s attempt to restructure. 


The importance of employee morale can be summarized as:

  • An increase in morale will cause employees to enhance their performance. Their productivity will increase, which will allow the company to save time and other resources. Moreover, they will require less supervision and be more efficient in their work.
  • A satisfied and motivated employee will contribute to customer satisfaction. They will deal with the client’s queries and issues in an empathetic manner. Such employees will perform better, which will contribute to the overall growth and profitability of the company. 
  • Increased morale in employees will reduce absenteeism and turnover rate. When employees are content in their organization, the chances of them switching to other companies will become considerably less. If employees feel that their efforts are appreciated, they are more likely to be more present and engaged in the organization and its tasks.
  • If employees are encouraged to express their ideas and thoughts freely, they will offer creativity to the business. They may come up with unique solutions to problems, or they may introduce new ideas to the business.

Frequently Asked Questions (FAQs)

1. Who is responsible for employee morale?

The employers in an organization are primarily responsible for increasing employee morale. They can make the employers feel appreciated in the organization and instill in them a sense of belongingness. When employees feel cherished and respected in the workplace, their commitment to the job increases, which also helps boost productivity.

2. What is low employee morale?

A low morale is a situation where the employees do not enjoy a positive experience in their workplace. They may feel undervalued or unappreciated, which may hinder their efficiency. Low morale may manifest in discontentment and disengagement in the workplace.

3. How can substance abuse affect employee morale?

Substance abuse may impact an employee’s morale in several ways, as they may feel constantly demotivated. Employees battling with substance abuse may stay absent for long hours, take unnecessarily long or frequent breaks, and display disinterest in their work. They may also find it challenging to focus on their work, resulting in frequent mistakes and low productivity.

4. How can DEI training improve employee morale?

DEI training can improve an employee’s morale because it promotes a work culture where employees can openly express any bias. They are encouraged to foster inclusivity and openness.

This article has been a guide to Employee Morale and its meaning. We explain how to boost it, its examples, importance, how to measure it, and factors. You may also find some useful articles here –

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