10 Ways to Boost Team Morale During a Recession

With inflation rising, stock markets sliding, and a looming recession hanging over our heads, it’s hard not to worry about what the future holds during these uncertain times. In response, large-scale companies have initiated a wave of lay-offs, leaving employees in fear that their jobs and financial security are at stake.

This begs the question: what can you do, as an employer, to retain your employees and strengthen team morale during an economic downturn? The answer will depend on your company culture, guiding principles, and the individual needs of your employees. 

If you’re stuck on where to start, we’ve provided a list of beneficial general strategies to follow that’ll get your employees from surviving to thriving in no time. Take a look!

1. Identify Their Needs

You can’t improve your team’s morale without first knowing what their needs are. Taking the time to learn about every employee and the unique factors that hinder their engagement and productivity will allow you to take strides toward finding a solution.

It’s really just as easy as asking them for their input! Whether that’s through a systematic engagement survey or speaking to them individually, there are many ways you can collect data to determine what should be adjusted to fit their needs.   

2. Express Empathy

Once you have a solid understanding of your employees’ needs, it’s important that you empathize with their situation. Likely, the impending recession hasn’t just affected their work life but their home life as well, putting stress levels and burnout at an all-time high.

Listening to your employees’ concerns and taking actionable steps to improve will show them that they aren’t just a number and that you genuinely care about their well-being. When employees feel like you understand and have got their back, they won’t feel as stressed and are much more likely to stick around.

3. Maintain Open Communication

To create an environment of trust and transparency, keeping the lines of communication open is crucial. Make sure your employees feel comfortable voicing their ideas and concerns without feeling judged or like they're not being heard. 

If you're going through a difficult period or making changes to the company, let your team know what's happening and why decisions are being made. Being honest about the company's future will help build trust with your employees and make them feel like their input matters.

4. Show Appreciation

Your employees want to feel recognized for their hard work. It’s what keeps them motivated, engaged, and happy with their jobs. Acknowledging achievements, big and small, will foster a healthy company culture, relieve stress, and lower turnover rates. 

A simple ‘thank you’ goes a long way! You could also write thoughtful letters, provide an incentives program, or conduct a ‘Feedback Friday’ every week where employees and leadership can exchange words of appreciation.

5. Throw a Team-Building Event

One of the best things you can do to boost team morale is hold a team-building event. It gives employees the essential time to relax, unwind, and reconnect as a team. Then when it’s time to get back to work, they’ll feel uplifted, refreshed, and fully supported by their colleagues.  

In times of economic uncertainty, planning a team-building event can seem overwhelming. At Happied, our expert planners do all the hard work for you. From ideation to booking to logistics to execution, we make Happied planned events simple and stress-free! Talk to a planner today.

6. Provide Growth Opportunities

Show your employees that you value their growth and success by providing them with learning opportunities tailored to their individual needs. Investing in training sessions or setting up one-on-one coaching can help your employees refine their skills and increase morale. 

You’ll be helping your employees become the best versions of themselves professionally while ensuring your company has the leadership needed to succeed. And who doesn’t love a win-win situation? You could even incentivize these training opportunities with rewards such as gift cards or extra vacation days so that employees stay motivated and focused on reaching their goals.

7. Promote a Healthy Work-Life Balance

Creating a healthy work-life balance is key to reducing stress and improving employee morale during a recession. Make sure your employees are taking the time they need for breaks, vacations, and self-care so they can stay happy, healthy, and productive.

Consider adding wellness benefits to their packages, allowing them to get physical or mental health resources. It's also important to set boundaries and expectations so they can fully unplug during their off hours. Doing all this will significantly help reduce stress and let your team know you’re all in this together.

8. Follow Through on Diversity, Equity, Inclusion, and Belonging (DEIB) Initiatives

If you’re looking to impress your employees and prove your DEIB initiatives are more than just a PR move, the internal review phase is essential. Ask yourself: what have we achieved so far? Have we successfully diversified our talent pool? Are members of all backgrounds receiving equitable feedback? Do we foster an inclusive work culture? 

Fostering and cultivating DEIB in your workplace is a great way to boost morale and create a sense of belonging in employees from different cultural backgrounds. Make sure you’re delivering on your DEIB promises as it isn’t just about presentation – it's about action. If you want to prove that your company is serious about DEIB, follow through with tangible progress. 

9. Encourage Autonomy 

Giving your team control over their work-life can lead to great results for everyone involved. It not only shows that you trust and respect them enough to make these decisions on their own, but it also gives your employees the freedom to structure their day in a way that works best for them.

For example, if team meetings are required, let them be the ones to choose their meeting times and locations, so everyone is happy. Or if they need to work from home one day, allow them the flexibility to do that without penalty or guilt. The more autonomy you provide your employees, the more confident, motivated, and productive they’ll be throughout their work day.

10. Model a Positive Outlook

One of the most important actions you can take as someone in a leadership role is to stay positive. Show your team that no matter the circumstances, you have faith in everyone’s ability to rise above them and push forward. 

Demonstrate that success is still possible even when things don't always go according to plan. Celebrate the small wins, and thank your team every chance you get. When you set a positive tone, your team will follow suit, and the collective morale will inevitably start to improve.

A Team That Has Fun Together, Stays Together 

Even when a recession isn't on the horizon, it's essential to keep your team's morale high. By following the guidelines in this blog post, you'll be well on your way to ensuring that your team is well-engaged and retained. 

And remember, team-building events are a vital part of any employee engagement & client retention strategy. At Happied, we plan on-brand, on-budget events designed to bring out positive vibes during any economic climate. Start planning your next event today with Happied!