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The Role of Morale in Employee Retention

Oct 7, 2024 | Culture and Retention, Resources

Blog

The Overlooked Factor in Industrial Success

In industries where efficiency and output are paramount, it’s easy to lose sight of the intangible factors that drive real success. While production metrics and operational strategies are crucial, they only tell part of the story.

Beneath the surface, employee morale and alignment with company values serve as the foundation upon which all other aspects of the business rest. Without a strong foundation, even the most well-oiled machine will eventually falter.

In understanding the full scope of what drives success, it’s important to recognize the key components that underpin a strong foundation in any organization:

  • Employee morale: The emotional and psychological state of the workforce influences how engaged and productive they are.
  • Alignment with company values: When employees see how embracing the company’s mission supports their personal and professional growth, it fuels their motivation and commitment.
  • Operational dependency: The need for a solid foundation of morale and values alignment to sustain long-term productivity.
  • Intangible assets: The unseen drivers of employee retention and engagement, critical to maintaining a healthy, thriving workplace.

The Domino Effect of Low Morale

When morale takes a hit, it triggers a chain reaction that can ripple through your entire organization. It often begins with a group of employees feeling disconnected or unhappy, leading to their resignations. As workers start to leave, those who remain are left to shoulder the extra workload. The pressure of covering for a shrinking team can quickly become overwhelming, leading to stress and tension.

In this environment, interactions between employees can become strained. The stress of trying to keep up with demands causes people to snap at each other or become less patient and supportive. This friction only deepens dissatisfaction and erodes the team’s cohesion. To keep operations running, the remaining employees may be required to work overtime. While this might seem like a short-term fix, it often comes at the cost of their work-life balance, leading to fatigue and frustration that further sour their view of the job.

The Impact of Contingent Workers on Morale

Adding another layer to this dynamic is the role of contingent workers. If your company relies on contingent workers, their experience can significantly impact the morale of your full-time team. Unhappy contingent workers who feel disengaged or dissatisfied can contribute to the overall negativity within the workplace. This is where the quality of your staffing agency becomes crucial.

A staffing agency that fails to properly onboard, engage, and support its contingent workforce can inadvertently fuel the domino effect of low morale. Contingent workers who aren’t adequately integrated into the company culture may struggle to adapt to their roles, leading to performance issues and dissatisfaction. Their unhappiness can then spill over to your full-time employees, who might feel burdened by having to cover for or even train these temporary workers. This additional stress can exacerbate the already strained morale, leading to more turnover.

As contingent workers cycle through the company, they may find the environment unwelcoming or even hostile, which discourages them from fully engaging with the job. Recognizing this, many may start looking for other opportunities almost immediately, leading to high turnover among your contingent workforce as well. This turnover, in turn, puts even more pressure on your full-time staff, further deepening the cycle of low morale and dissatisfaction.

Breaking the Cycle: The Role of Intentional Staffing

To break this cycle, it’s essential to ensure that both full-time and contingent workers feel valued and supported. This requires intentionality from your staffing partner. (Unlike most staffing companies that leave onboarding and retention to chance, Ōnin has dedicated hiring, onboarding, and retention programs specifically designed to help contingent workers feel engaged and motivated.)

By fostering a positive experience for contingent workers, you can prevent their dissatisfaction from spilling over to your full-time team, stabilizing morale across the board.

Cultural Alignment: The Glue Holding It All Together

If morale is the foundation, then alignment with company values is the glue that holds everything together. It’s the sense of belonging that employees feel when they see how embracing the company’s mission supports their personal and professional growth. This alignment creates a cohesive, motivated team where individuals are not just working for a paycheck but contributing to a shared purpose.

However, this sense of alignment doesn’t happen by accident. It’s cultivated intentionally, beginning with the hiring process and continuing through onboarding, training, and daily operations. It’s reinforced by leadership that lives the company’s values and creates an environment where those values are evident in every interaction. Whether your employees are full-time or contingent, ensuring that they feel connected to the company’s mission is key to maintaining high morale and strong retention.

Leadership’s Invisible Hand in Shaping Morale

Leadership plays a subtle yet powerful role in shaping morale and alignment with company values. The best leaders understand that their actions—both big and small—have a ripple effect throughout the organization. They set the tone for how employees interact with each other, how challenges are approached, and how success is defined.

Leaders who prioritize transparency, respect, and inclusivity create a workplace where morale naturally thrives. These leaders don’t just manage; they inspire. They provide the tools and support employees need to succeed while fostering an environment where everyone feels valued and heard.

Building a Sustainable Culture

Creating a culture where morale and alignment with company values are prioritized isn’t a one-off project—it’s an ongoing journey. It requires continuous effort and a willingness to evolve as the organization grows. This means regularly assessing the health of your workplace, gathering feedback, and making adjustments to ensure that employees remain engaged and aligned with the company’s mission.

A sustainable culture is one that doesn’t just react to problems but proactively creates a positive, empowering environment. It’s a culture where employees see a future for themselves within the organization and are motivated to contribute to its long-term success.

Take Action: Where Does Your Organization Stand?

Understanding morale and alignment with company values is just the start. The real challenge is applying it to your organization. Are your employees engaged and connected to their purpose? Is your environment fostering high morale?

Our quiz helps evaluate your workplace’s current state, offering insights and actionable steps to strengthen your culture and boost retention.

Take the quiz today to start building a workplace that retains top talent and drives lasting success

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