When employees have high absenteeism levels and low morale, your company will likely suffer from a loss of profits, high staff turnover rates and reduced operational efficiencies. Don’t forget as well that you’ll need to cover the costs of additional training and investing in recruitment processes because of these issues.
Join leading indoor skiing attraction Chill Factore, where employers can book fun and inclusive team-building activities, as they detail why businesses should be concerned if their workforce is filled with staff members who are unhappy…
Just how costly is an unhappy workforce on a UK business?
Studies have underlined that employees who are dejected in their jobs will be less productive. Considering that satisfied employees outperform companies with unhappy workers by 202%, it’s clearly beneficial for a company to take notice of the happiness of its staff.
Are you aware about just how much unhappy employees can be affecting your company’s profit margin? Personal Group, a staff services company, discovered that people who were happy with their job were 12% more productive than those who felt negatively about their role. Staff that aren’t satisfied will typically be less enthusiastic and involved — and this disengagement is reportedly costing the UK £85 billion a year in lost productivity, according to Gallup’s State of the Global Workforce report.
Negative feelings can also be developed among employees who believe their working hours are poorly organised or long. Their emotional wellbeing can be badly affected as well. This in turn affects workplace performance. A poll carried out by The Hoxby Collective found that 33% of workers said they’d suffered mental health problems directly because of rigid working hours. If your staff are unfit for work, this will cost you. According to estimations by The Centre of Economic and Business Research, absenteeism alone will cost the UK economy £21 billion by 2020, while overworking your staff can also lead to exhaustion and lack of sleep — another contributor of poor productivity levels that costs the UK economy £40.3 billion a year. Consequently, it’s key to create a positive working environment that staff want to get up in the morning and work in if companies want to keep paid sick days to a minimum.
There are even links now being developed between low staff morale and members of staff feeling anxious or becoming depressed. According to research from the Centre for Mental Health, it costs employers £3.1 billion in staff turnover and £10.6 billion in sickness just to cover mental health problems of staff in the workplace. From implementing staff perks and bonuses to creating a happy, communicative atmosphere; all employers should be investing in lowering the risk of mental health issues for their staff.
You shouldn’t be surprised to see employees seeking employment at a new firm when they are unhappy in their current job either. The Oxford Economics and Income Protection Providers Unum has calculated that the average amount of replacing a staff member sits at approximately £30,614 — taking into account hiring, lost time, training, and adapting new staff to the workplace culture. Can your business afford to keep covering or taking on new staff?
If anything, the research detailed so far should be informing employers that they should be stepping up their efforts to ensure staff morale remains high across a business. Fortunately, there are many initiatives employers can enforce to boost employee happiness.
Tips for raising staff morale and ensuring it remains high
In an Investors in People’s poll that was carried out at the start of 2018, close to half of the 2,000 participants admitted that they had plans to leave their current job within the next year due to poor management. Meanwhile, 39% stated that it was because of feeling undervalued and 30% claimed the reason was lack of job development opportunities. Are these factors that you can explore as part of a business strategy to improve staff morale?
Management certainly appears to be a reason why many employees decide to leave a business and seek employment at another company. Considering the cost of replacing staff, this is something you’ll want to reduce. Assess how your supervisors and managers treat and interact with their staff — could they do with having stronger relationships to encourage better communication? If so, consider scheduling a series of corporate team-building activities to help boost collaboration across all of your departments, or organise onsite charity fundraisers, staff quizzes or regular nights out to inject a sociable aspect into the corporate environment.
Look to boost staff morale through training and development too. These can be provided either in-house or through external training courses. Sending your staff on these will not only make them feel valued — another factor of workplace happiness — but should also mean your company will benefit from more knowledgeable and confident business decisions, which should prove lucrative in the long run.
The wellbeing of staff members can also be improved through improvements in job quality. This is according to a report created for Britain’s Department for Business Innovation and Skills (BIS). For instance, give your employees more authority over their working day — from how long it takes to complete a task properly, to how they schedule their day. This level of control and variety will help make workers feel more important and excited for the day ahead, while re-evaluating the time it takes to complete a task will lower the risk of them feeling rushed or stressed, thereby reducing the chance that they will take time off for anxiety-related issues.
Have you started to realise that sick days are proving costly to your business as well? If so, it may be worth trying to implement a strategy that focuses on improving the health of employees as well. The UK’s National Institute for Health and Care Excellence claims that a well-researched and managed wellness plan can reduce sick days by almost a third — which means the expense of covering shifts and reduced productivity levels will go down accordingly, too.
Apply the tips given in this article across your company and hopefully you’ll quickly begin to witness employees who are happier, not to mention feeling both secure and valued at work. Be sure to implement positive processes across your businesses and show initiative too.