Subscribe Ask the Editors Search Entire site Smallbiz Bookstore Msg. How you treat your employees can affect them more than the vexing market situation. My employees are hearing about other companies going bankrupt and stock prices plummeting, and it s affecting them. You re not alone. With the demise of the dotcoms and the downturn in many businesses associated with them, employee morale has become a pressing problem for many business owners.
Many companies think the best way to solve morale problems is to offer employees more money.
However, the fact is morale problems are seldom about money. This assumes, of course, that people are being compensated at or near the mean for people in their job class. After almost thirty years of consulting with a wide variety of businesses, I m confident that the main reason people leave an organization or become disillusioned on the job is related to the way they re treated every day. I have often stated that the best job you will ever have is one where you know how you performed each day and feel appreciated for your accomplishments that day. The company that knows the accomplishments of its employees and gives some form of appreciation for them will not only keep its employees but will outperform their competitors who don t. Keep in mind that accomplishments don t need to be rewarded with lavish gifts or perks.