The High Cost of Low Morale...and what to do about it

Carol A. Hacker

• Publisher: CRC Press
• Year: 2021
• eBook ISBN: 9781000154504
• Topic: Business
• Subtopic: Operations
• Index: Business

While the morale of an organization is an intangible element composed of feelings and attitudes of individuals and groups, the effects of morale include tangible and extremely important factors such as profits, efficiency, quality, and productivity. Low morale and its costliest indicator, high turnover, can be a tremendous drain on a company's finances. Managers often view morale as mysterious and unpredictable, when in fact it is a measurable, controllable expense. The High Cost of Low Morale explores the underlying causes of low morale and offers you field-proven, practical methods for increasing morale and reducing turnover in your organization.

PIN THE TAIL ON THE DONKEY

1

(Making Good Hiring Decisions)

“Your reputation as a manager is on the line with each hiring decision you make. You are ‘playing God’ when you hire, and people will suffer if you use your influence unwisely. So, you owe it to yourself, your employer, the person hired, and the nation to be as thorough, professional, sensitive, fair, and objective as you can be.”

—Bradford D. Smart

from The Smart Interviewer—

Tools and Techniques for

Hiring the Best

At children’s birthday parties in earlier years, guests played Pin the Tail on the Donkey. It was one of my personal favorites, even though I wasn’t especially accurate at finding the right spot. An outbreak of laughter always awaited blindfolded victims who pinned the tail on the donkey’s face, or worse yet, the wall. This delightful game entertained party-goers for decades before the introduction of other more exciting activities to stimulate young minds.

That game reminds me of how some managers select new people. Their hiring process is almost as random as the efforts of the blindfolded player. Some don’t know how to get started. Others jump in and hire without a strategy. Many hire in haste and hope the new employee will stick. Hiring the wrong people is like pinning the tail on the wrong end of the donkey—it doesn’t work. The results, unfortunately, are not a laughing matter.

Poor hiring decisions are often at the root of existing as well as future morale problems. Bad choices create endless confrontations, disappointments, hurt feelings, and significant costs. When first choices are bad choices, no matter how talented your people, morale declines, and so does performance.

As a consultant to the management teams of several major league ball clubs, I’ve worked with and had the opportunity to compare player recruiting strategies to screening and hiring strategies for many types of businesses. The teams are just as eager to avoid making bad choices among ball players as you are to avoid hiring a misfit for your organization.

So, as you prepare to hire, first consider the needs and wants of people. Everyone you bring into your organization is unique. Employees want an understanding of a company’s vision and how management’s decisions will affect them and their families. Each individual you employ has a variety of concerns, and money isn’t the only motivating factor. Many low-paid, unskilled workers are happy and motivated to do a good job. Top wages offer no guarantee that your new personnel will not become a morale problem. What are you doing to prepare for the first step in avoiding the high cost of low morale?

PLAN FOR RETENTION

Why employees stay is more important than why they leave. For many, self-esteem is more important than money. A pleasant physical environment can be a motivator, as can social interaction and an emotionally supportive manager. Job security is one of the biggest factors in why people stay. In addition, everyone wants respect and managers who will recognize and reward their best efforts. Many employees hang on until something or someone causes them to leave. Factors outside the organization, which include wanting to remain in the community they live in despite job dissatisfaction, also make people want to stick with you.

One of the most serious and persistent problems confronting managers is selecting employees who will work in the business for a long time. Turnover represents considerable costs in the continual recruitment and training of new employees. Even the best people are of little value to you if they leave the position after a short period of service.

As you prepare to hire new people, do so with an eye toward the future. Find out what motivates them before you offer the job. Look for individuals who are willing to make a long-term contribution to your business.

Organizations can manage turnover or be managed by it. How well it’s managed has a lot to do with the manager’s commitment to the task. No matter what the size of your business, the answer to turnover is simple. So, if you have an excessive employee turnover problem and can’t find the cause, you might try looking in the closest mirror.

FORECAST STAFFING NEEDS

What has your business done to anticipate changes in staffing needs? The more prepared you are to fill a vacancy, the smoother the transition for everyone, especially new employees. Many companies don’t spend enough time planning for future personnel demands. When an opening occurs in a large organization, managers often simply ask the human resources department to find a replacement. In smaller businesses, however, it’s the manager’s responsibility. A basic plan for when and how to hire and promote definitely impacts morale.

A formal development program can also help manage tragedy. On April 3, 1996, Secretary of Commerce Ron Brown’s plane slammed into a hillside. The accident killed him and 32 other business leaders. The following week, President Clinton named Brown’s successor. Some corporations who lost a management team member on that flight had no one in mind to fill the void. Forecasting can save time, eliminate hasty decisions, and create smooth transitions when the unexpected occurs.

DEVELOP RECRUITMENT SOURCES

Identify reliable sources for finding good candidates in advance of your need. It will reduce the pressure when you suddenly have to fill a vacancy or find the right person for a newly created position.

Many managers use newspaper advertisements because it takes the least amount of effort. They place an ad and wait for applicants to send in resumes. It’s easy, but not always the best method for finding top performers.

Most people like to be asked for suggestions, so boost morale by giving your employees an opportunity to help. Employees who enjoy what they do and respect the organizations they work for will be eager to refer people to you. However, be sure they understand you reserve the right to accept or reject referrals without further explanation. Having a pool of people from which to choose is ideal. That’s why keeping a resume/application file is valuable.

There are many other sources that work well but are often over-looked, such as:

• 
  alumni associations
• 
  branches of the military
• 
  celebrity-hosted events
• 
  cinema billboards
• 
  direct mail
• 
  door hangers
• 
  ex-offender programs
• 
  former employees
• 
  internet
• 
  job fairs
• 
  job hotlines
• 
  job lead organizations
• 
  layoffs/closings
• 
  magnetic signs
• 
  on-campus interviews
• 
  open houses
• 
  posters
• 
  presentations at community event
• 
  professional associations
• 
  radio advertisements
• 
  referral cards
• 
  resume databases
• 
  scholarships
• 
  senior organizations
• 
  telemarketing
• 
  television advertisement
• 
  trade magazines
• 
  unsolicited resumes

You may have other ideas on which you can develop you...

Table of contents

• Cover
• Title Page
• Copyright Page
• Dedication
• Table of Contents
• Preface
• About the Author
• 1 Pin the Tail on the Donkey (Making Good Hiring Decisions)
• 2 Up Your Attitude (A Good Attitude = High Morale)
• 3 Pygmalion’s Fair Lady (The Power of Expectation)
• 4 Ma Bell Did It (Communicate)
• 5 -Ch-Ch-Ch-Change (Take Charge of Change)
• 6 Get ‘Em Psyched (Build Fun into Your Organization)
• 7 Who’s on First? (Is It Leadership Or Is It Management?)
• 8 Close Encounters of the Worst Kind (Managing Difficult People)
• 9 All Aboard (Orientation and Training)
• Appendix
• Glossary
• Index