How to tackle employee stress to boost employee morale

You know that feeling in a team meeting when ideas bounce around like  a professional game of ping-pong? Everyone’s  on the same page, energized, collaborating, and pushing ideas to their full potential? This dynamic—often referred to as a “flow state”—is a hallmark of teams with high morale.

However, the  reality is not many teams are this engaged day-to-day. Many teams are scaling back and tightening budgets and resources—and  employees are asked to take on additional responsibilities without added  support. 

Upwork Research Institute recent study on raising worker demands found that:

• “One in three employees are likely to quit their jobs in the next six months due to rising productivity demands.”

A key to unlocking a business without high turnover or disgruntled employees is through focusing on employee morale.  

Ahead we’ll explore the strategies employers can tap to boost employee morale. Often the best path is to address the root cause: stress. We’ll discuss how open communication, work-life balance and financial wellness can enhance job satisfaction and employee morale.

What is employee morale?

Employee morale is simply how employees feel about their work and workplace. It refers to how employees feel about their role, the company culture, management, and colleagues as the primary reasons. 

Employee morale is further a key step towards achieving employee engagement. 

Why is employee morale important?

High employee morale leads to a work environment where employees feel valued, engaged, and motivated to perform. A bonus for employers is that high productivity rates often come along on teams with high morale. 

In contrast, low morale leads to absenteeism, decreased productivity, and higher turnover rates.

Strategies for improving employee morale

Improving employee morale can take time, balance and compassion. Not everyone’s behavior or personality at work is going to be improved by the same methods. Consider the following strategies to boost employee morale and help lower any workplace stressors.

Open two-way communication

Encouraging open and two-way communication on your team is an essential  first step to increase employee morale. 

Enabling and reassuring employees  to freely express their thoughts, concerns, and ideas is helpful to create a culture of feedback. It also allows for trust, belonging and collaboration—all of which improve employee experience and morale.

Creating  a culture of open and two-way communication can take many shapes and approaches. Some examples include: 

• Open-door policy: Employees are encouraged to speak directly with management about any issues, feedback or provide suggestions
• Regular team meetings and one-on-ones: Create opportunities for employees to share updates and express any concerns they may have
• Pulse surveys:  Anonymous and quick touch points that provide immediate snapshots of employee morale
• Annual surveys: a more comprehensive and long-term overview of employee engagement and morale with the goal of finding ways to improve the workplace culture 

Employee feedback 

A culture of open communication can only be achieved when your team knows you actually care about their feedback and what they have to say. It’s essential to not just gather feedback but take action based on what those  insights say about the work environment.

Employees want to see \ their input is valued and leadership is committed to making improvements. 

Implement changes based on what your employees feedback tells you—even if you have to start small. This shows your team you care and respect their experiences and perspectives. 

Employees are also more likely to reciprocate by going above and beyond in their work. 

Work-life balance

Work-life balance is the harmonious relationship between work commitments and personal commitments, including at-home responsibilities and general well-being. A healthy work-life balance allows employees to fulfill their roles in both areas without sacrificing one for the other.

Work-life balance directly boosts employee morale. It energizes your team by providing them the flexibility and space to tend to their work and personal responsibilities, and ensuring they can  thrive in their roles.

PTO (Paid time-off) 

To improve your employees work-life balance, encourage them to use vacation and paid time off. Effective PTO policies help prevent burnout.  Employees who are rested and experience life outside of work can maintain their productivity and perform better in the long run. 

Learn more about what benefits today’s employees value most in our Top voluntary benefits for today’s employees: report\

Flexibility 

Offering flexible work options can help employees manage their personal and professional responsibilities more effectively. 

• Consider introducing flexible policies that support work-life balance such as remote work options, hybrid work options, or compressed workweeks

Flexibility allows your team to tailor their work schedules to better fit their workstyle.  Employees are able to work efficiently  during their peak performance hours or in environments best suited to their working style.

Results-oriented work environment

Another way to improve your employee’s work-life balance and overall morale is to shift to a results-oriented work environment rather than a strictly time-bound one. 

• Focus on celebrating employees for their productivity, impact and excellence in their work  instead of diligently tracking the hours they spend at work. 

This shift in perspective empowers employees to prioritize their tasks effectively_, and, most important, ensure employees can take ownership of their work. 

Employee financial stress

Financial stress has made its way into the workplace in more ways than many of us may realize.  This specific stress can significantly lower employee morale as employees are often disengaged from their work and interacting with team members.

When employees are dealing with financial stress, they’re often preoccupied with anxious worries around paying bills on time, current and future debt, and any other unexpected expenses that happen to pop up.

“As leaders, we must recognize that financial stress is not just a personal problem but a critical business issue that affects productivity and engagement at work. Financially stressed employees are often less motivated and less productive.” - Forbes 

Financial stress and employee morale

Financial stress weighs heavy on employees. The constant pressure from financial concerns can create an anxious atmosphere. Employees may feel isolated, or even embarrassed, and hesitate to share their struggles and how it's impacting their work with their managers. 

Balancing personal finances isn't just a headache at home— it's like a storm cloud hovering over the workplace. 

Between February and May 2024, ZayZoon surveyed just over 5000 employees and 500 HR professionals to gather insights on the relationship between financial stress and performance. 

• 52% employees said they experience financial stress daily or multiple times per day. 
• 63% of HR professionals responded said “yes” when asked if employees who struggle financially perform worse at their jobs

As financial stress builds. burnout becomes a real risk. Burnout impacts everyone, as tired employees are less likely to engage positively or contribute new ideas.

We asked HR professionals to clarify the relationship between financial stress and morale.  The respondents said that 33% of employee financial stress had a strong negative impact on morale while 35% said it impacted employee mental health. 

Impacts of employee financial stress 

We asked our surveyed HR pros the  specific impacts poor employee financial health have had observed on employee performance .

To gain a holistic perspective, we asked the surveyed employees a similar question about how financial stress affects their performance in the workplace.  

The similarities here are stark and indicate that both employer and employee understand that financial stressors will absolutely have an impact on their work life. 

Read more insights about employee financial stress and its impact on performance in our The state of employee financial wellness report. 

Reducing financial stress to improve employee morale

Businesses are finally understanding that employee wellness and care go beyond health benefits and perks. Folding in programs, tools, educational resources and apps dedicated to reducing financial stress can  increase 

performance.Financially empowered employees  with financial wellness programs are happier employees. 

Earned wage access (EWA): A financial wellness tool 

A new and increasingly popular way to empower employee financial wellness is  earned wage access or on-demand pay. EWA allows employees to access their earned wages ahead of payday. Employees can access a percentage of the wages they've already earned whenever they want, and it’s interest-free. 

In our report, we asked HR professionals offering EWA if the tool has an impact on organizational success:

• 64% said EWA in  their workplace experienced increased morale
• 63% reported a rise in productivity after adopting EWA

The role of management and HR teams

Managers and HR teams play a crucial role in shaping and improving employee morale. Upskilling leadership can give them the tools they need to implement strategies that will directly benefit employees.  

Management teams ultimately create    the work culture the want. If they want team members to feel comfortable, valued, supported and engaged, consider adding financial wellness tools and programs like EWA to the roster of employee benefits.

When it comes to mitigating financial stress specifically, you can get started by:

• Identify your employees’ biggest financial stressors.  Struggling to pay for meds? Gas prices too high? Cash flow issues? This will help guide you with what your team may need. 
• Take a deep dive into the financial wellness benefits landscape and see if there are any solutions that might work for you.
•  If EWA is on your wishlist, read our buyer’s guide. We provide you with guidance on what to look for, questions to ask vendors, and an in-depth comparison of the space’s top vendors.

By showing genuine interest in your employees’ well-being, you will foster a sense of loyalty within your team. This strengthens your relationship with your team overall, and is a critical step towards improving employee morale and that flow state

A step towards organizational success

In a work climate where employee expectations are rising, focusing on morale is essential for organizational success and reducing employee turnover. When employees feel good about their jobs, they’re more likely to stay and contribute to a positive work environment.

A proactive approach to boosting morale has clear benefits. When organizations prioritize financial wellness, open communication, and work-life balance, employees feel valued. This support leads to higher engagement levels, driving productivity and success.

Book a free demo to learn more about how ZayZoon, EWA and financial wellness can boost your employee morale on your team.