Many small business owners are struggling to stay afloat and are being forced to make tough decisions—such as instituting layoffs or budget cuts. In the wake of these decisions, office morale can dip as employees face uncertainty about their jobs.
The unemployment rate in the U.S. is already at a 26-year high and layoffs are still in the future for many small businesses. According to an August report by the National Federation of Independent Businesses, 14 percent of small business owners plan to cut staff in the coming months. Even for employees that survive a layoff, job uncertainty remains. Equifax reports that small business bankruptcies were up 81 percent in June over the previous year.
“Layoffs, budget cuts and the pressure of an unstable economy can cause office morale to dip,” said Dale Mingilton, President and CEO of BBB Serving Denver/Boulder. “When employees aren’t happy and morale is low, productivity suffers, resulting in a downward spiral for an already struggling business owner.”
Your BBB offers guidance for small business owners on how to keep office morale high in a tough economy:
- Enlist management in setting the right tone. In the wake of layoffs and budget cuts, it can be difficult to strike the right tone that will inspire trust with employees. Encourage your management to express openness with their staff while clearly communicating what should and shouldn’t be said, so everyone is on the same page.
- Acknowledge individual achievements. When morale is low it’s more important than ever to encourage employees and recognize the work that they do. Consider starting an Employee of the Month program or rewarding employees for completing projects or meeting goals.
- Share success stories. Work satisfaction is very important to employees; remind them of why they do what they do and how it affects customers. Make it a point to celebrate when things go well.
- Be open and listen. Talk to employees and listen to their concerns and recommendations. Sometimes little things can have a big impact on office morale. Talk to employees to find out what keeps them happy and what they would like to change around the office. Keeping the lines of communication open with employees can also help quell rumors that can undermine office morale.
- Keep the holiday party, but lose the excess. Many businesses have had to cut office parties altogether because of budget concerns, but events like office parties are a way to show appreciation, boost camaraderie and inject levity. Consider less expensive options for a party such as hosting a holiday lunch instead of a dinner or instituting a volunteer day to get everyone out of the office and working together.
