Blog

The state of employee morale in 2023

uploaded on 22 March 2023

Under pressure to boost growth, two thirds of employers have made productivity, and staff retention and attraction a top priority for 2023.  As staff morale impacts both these goals it is surprising that only a third of employers believe they are responsible for improving it.  

Doubly so, when research shows employees that are invested in and enthusiastic about their work consistently outperform and stay longer than less enthusiastic peers.

Should employers be worried about current morale among the troops?

What does the data say?

Gallup’s most recent global engagement and wellbeing survey suggests they should.  Before the pandemic, engagement and wellbeing had been slowly rising over a decade.  Now they are stagnant with just 21% of employees saying they are engaged at work.  The majority don’t find their work meaningful, don’t feel hopeful about the future and see work as a means to an end.  Globally 60% of employees are emotionally detached at work and 19% are downright miserable. 

Low morale isn’t limited to workers. In the same survey only 19% of managers and directors reported a “high interest” in their jobs.  If managers aren’t enthusiastic about their jobs, it’s hard to expect their reports to be fired up.

With the cost-of-living crisis following hot on the heels of the Covid pandemic it is perhaps understandable that staff aren’t firing on all cylinders.  Added to which, new ways of working are leaving staff feeling burnt out, with two-fifths of staff saying work has made them sick.  Only a third say they are thriving in their overall wellbeing.

In turn staff are doing the bare minimum to get by without getting fired giving rise to a new term “quiet quitting”.

In the public sector, moral is so low that staff are striking on a scale not seen since the 1970s.

Stepping back, it is clear that employee morale is in the doldrums.  It’s difficult to see how worker productivity can be increased without first addressing the issues negatively impacting moral.

What can employers do to boost moral?

Every workforce will be different but there are three key factors influencing moral today which HR must take action on. 

  1. Support financial wellbeing

A colossal 77% of staff say money worries are negatively impacting their mental health and ability to function properly or make good decisions at work. A combination of rising council tax, energy bills and accumulated debt mean many employees won’t see an improvement in their financial situation for at least the next three years. 

Employers can mitigate financial concerns by supporting all aspects of an employee’s financial wellbeing.  Financial education to build knowledge, resilience and confidence. Services that offer practical support to tackle financial problems and associated mental distress. As well as access to employee benefits and discount schemes to boost an employee’s overall financial position.

  1. Enable transparent pay discussions

Adjacent to this point 61% of UK workers feel they are not paid fairly at work and this is giving rise to feelings of resentment.  The issue may not be obvious to employers as only 24% say they will actually ask for a rise.  Ahead of pay-rise season make sure you have clear goals and performance metrics in place for every job.  These help managers and workers to navigate pay-review conversations and celebrate where an employer adds value.

  1. Get hybrid “right”

Where a job can be done remotely, employees want and expect this flexibility.  Done well hybrid can boost satisfaction and wellbeing. By contrast, hybrid inflicted in an unthinking way increases staff turnover, burnout and dissatisfaction.  Invest time working with individual teams to create a great employee hybrid experience. One where employees feel their contribution is seen, valued and appreciated wherever they work from.

Finally, keep reminding leaders of the business case for monitoring and boosting morale.  A ‘soft’ metric, with ‘hard’ implications.

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