Why It’s Important for Start-Ups to Maintain High Employee Morale

By Matthew King | Business Planning

Mar 12
Employee Morale

Building a workplace culture with a sincere focus on maintaining high employee morale is vitally important for the long-term success of any business, especially start-ups that depend on getting and retaining top talent to grow the enterprise. Studies have shown that high morale in the workplace results in less absenteeism, higher productivity and greater lengths of stay for employees. On the other hand, low morale can mean dragging productivity, lower customer satisfaction, and increased turnover.

Morale means the general outlook and attitude that employees have toward a business and the larger workplace environment. It is an indication of emotional satisfaction. Here is why morale is so important for your start-up and how to increase it for long-term growth.

Good Morale Boosts Productivity

Happy employees are industrious employees. This is no secret. Business analysts have long been aware that a boost in morale increases productivity in a company and leads to a greater output. Ultimately, this is just common sense. If employees feel valued and included in the success of the enterprise through a sense of shared interests and mutual benefit, they are much more likely to go the extra mile to help the business grow and thrive.

Using Activities to Promote Team Unity

Company-wide events can help boost morale among employees by keeping everyone engaged. The spirit that comes with team unity has been shown over and over again to be a winning formula in all walks of life, including sports and business. The underlying reason why making people feel they’re part of a team is so important for any group’s success is a bit of primitive psychology. Humans are cooperative animals that evolved over millions of years by pooling their resources and talents to survive. People are happiest and most productive when they feel they belong to a group that is working toward the same goal with a reciprocal investment in one another’s well-being.


The best ideas usually aren’t the brainchild of a single gifted individual, but rather the product of collaboration among multiple employees. Everyone has blind spots just as everyone has special talents. When you boost morale, employees are much more likely to cooperate with one another to achieve the business goals that you set as their leader. People work best with those whom they appreciate and respect, so building a culture around those principles can go a long way.

These concepts work because they’re founded on basic human psychology. To build a culture of success in your company, prioritize the morale of your employees.

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About the Author

Matthew King is the owner of the Startup Forums, Alkries LLC, and co-owner at TR King Insurance Marketing. Partner at Independent Life Insurance Agent Association, Medicare Training 101, and Final Expense 101. When he's not creating content about running successful businesses here. He's most likely developing processes, diving into SEO, or gaming with his friends and wife.

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