Why Employee Morale Matters to Business Growth
Article information provided by Mineral HR's 2022 State of HR Report
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Discover the connection between strong employee morale and increased revenue and productivity.
Covid-19 was the ultimate stress test for companies large and small.
To understand how HR has navigated pandemic-driven challenges and what the outcomes were for business, in February 2022 Mineral surveyed 2,644 senior HR professionals in the U.S. We uncovered what some HR leaders did differently that led to unexpected improvements in business growth, despite the pandemic.
Some organizations saw increases in revenue and productivity, while others struggled just to maintain equilibrium. Our study found that even as companies climb the path to financial recovery, HR metrics like morale and ability to hire have decreased or remained stagnant. Only 38% of organizations have increased employee morale over the past year, and over half report morale is at or below pre-pandemic levels.
Organizations that embraced the four dimensions of Healthy HR before the pandemic passed the stress test with flying colors. Those that didn’t were left scrambling to breathe life
into their operations.
At the heart of every organization is its people, and our research emphatically confirms that.
Increased Employee Morale = Increased Productivity and Growth
The results from the survey both surprised and reassured us, revealing a robust linkage between employee well-being and financial health–even amidst a pandemic.
The majority (58%) of companies that saw revenue and productivity gains also improved employee morale over the past year. The majority (64%) of companies that saw their revenue and productivity shrink allowed employee morale to decline. The organizations that improved employee morale over the past year are also overwhelmingly more likely
to have sustained growth into the present. We love to see companies and people thrive, and our research shows that the two go hand-in-hand. In short, the more you prioritize employee well-being, the better your business will perform.
83% of companies that increased morale throughout the pandemic also reported
increased revenue. This was 2.8x higher than those who experienced decreased morale over
the past year. On top of that, companies with increased employee morale were also 5.5x more likely to have seen increases in productivity.
The Four Indicators of a Healthy Workplace
“Our employees are very satisfied with their compensation and benefits packages.”
Good Work-Life Balance
“Our employees are very happy with their day-to-day work-life balance.”
Potential for Career Growth
“Our training and development programs have successfully enabled employees to
transfer into new areas of the business and pursue new careers.”
“Our employees are unburdened by vacant positions on our team.”
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