Showing thanks to employees is one way to improve workplace morale, which has taken a serious hit because of today’s challenging economic times. Although the worst recession since the 1930s may finally be over, workplace pressures continue to weigh heavy on employees. For nearly two years, many Lake County companies have laid off workers, postponed pay raises, or reduced pay and/or cut benefits.

A recent national survey conducted by human resource firm Globoforce of Massachusetts reported that 70 percent of employees said layoffs and benefit cuts have had a negative impact on workplace morale. Fifty-five percent said these cuts also have sapped their productivity levels.

For business owners, low morale can be an insidious problem because falling productivity can erode profits, making a tough economy even tougher to survive.

How can business owners resolve low workplace morale? For one thing, attend the Teaming Up Lake County Business Expo & Job Fair on Nov. 5 at Lost Nation Sports Park in Willoughby (see related article). Beyond that, Lake County executives share these ideas that may work for your company:

• Communicate often and openly with your employees,
• Show workers that you value their extra contributions, and
• Lend employees a helping hand.

Communicate proactively

In February, Lubrizol Corp. of Wickliffe laid off 170 employees and reduced capital spending, manufacturing operations, research and administrative costs.

“People were pretty nervous around that time,” recalls David Mayher, human resources director of employee relations.

When companies make layoffs and cutbacks, employees understandably become anxious and stressed. Making matters worse are workplace rumors and media reports about the ailing economy.

At Lubrizol, executives and managers decided that stepping up their communications with employees would be an effective way to counter anxieties.
“We wanted to keep information about the company in front of our employees as much as possible,” Mayher explains. “I think that made employees feel more comfortable, and it helped alleviate their concerns or fears.”

More importantly, Lubrizol’s financial performance has improved, reporting in July that its second-quarter earnings rose $131.9 million, or $1.92 per share, up from $78.1 million, or $1.13 per share, a year earlier.

“I think there is not as much tension as there used to be,” Mayher says. “We were able to give our employees a pay increase in September, so people feel things are looking pretty good here.”

Show appreciation

Improving workplace morale may be as simple as just getting out of the office and doing something fun, says Srsen, whose 80,000-square-foot Lost Nation Sports Park houses soccer fields, basketball courts, batting cages, volleyball courts, an indoor golfing facility, an in-line hockey rink and a sports bar and restaurant.

Srsen’s staff coordinates up to 25 large and small corporate events annually. Typically, corporate events include a business meeting followed by different sports events.

“That’s one of the great things about sports. It creates a common bond between people who work on the factory floor and those who wear a suit and tie,” he says. “It helps people feel they belong to a bigger corporate team, and it opens the lines of communications. So when people return to their jobs, they may feel more comfortable working together.”

A few companies hire experts to help employees learn how team-building techniques can improve workplace performance.

“One event got middle-aged bankers real serious about winning a flag football game,” Srsen recalls. “I’m sure they were plenty sore the next day, but I think it was a real eye-opener for them because they got to know and work with people they might not have otherwise dealt with in the office. It helped them understand how their work fits into the bigger corporate picture.”

Lend a helping hand

US Endoscopy of Mentor is growing despite the recession. In January, the medical device company employed 275. It expects to finish the year with 325 employees and anticipates hiring more employees next year.

Nevertheless, US Endoscopy realized that some employees might be facing financial hardships because their spouses — working at other companies — may have been impacted by the recession, says Bill Busby, US Endoscopy’s senior director of human resources and organizational development.

“We tried something new this year by offering our employees two free personal financial workshops that provided them with useful information to manage their finances,” Busby says. More than 40 employees attended each workshop.

Additionally, the company runs a health and wellness program that offers employees free health screenings, including information about mental health such as how to spot depression and get help.

Peter Strozniak of Painesville Township is a freelance contributing writer and editor. To contact Peter: pstrozniak@yahoo.com.