How Does Staff Morale Impact Your Bottom Line?

I’ve spent twenty plus years studying businesses who produced revenue ranging from a million dollars to some that exceeded 25 million. Geographically, they were located in the continuous U.S as well as Hawaii and extended from the Canadian border to the Mexican border. The communities these businesses served were as varied as their distance to each other, but the common thread in the profitable businesses was caring leaders.

Leaders that cared about their staff’s wellbeing consistently produced higher profits than those whose leaders focused only on results. This was such a common occurrence that a colleague and I had a saying, “High morale equates to high profits and low morale equates to low profits.“ I had the privilege of visiting hundreds of these businesses over two decades. The morale was palpable when you walked through the door. A leader that focused on positive morale created an environment of trust and encouraged their staff to connect with each other and visitors. The staff members were welcoming and engaging, secure in sharing knowledge and asking questions. It was apparent that these leaders cared for their staffs and prioritized their time to support and develop their team members. In doing this, they created an environment of high morale. The lower profit leaders consistently used a leadership style that Steven Covey refers to as “command and control.” They had instilled a level of fear in their staffs. The employees were reluctant to speak to visitors and when asked a question would look at their leader for approval before responding.

As we wrap up the midpoint of 2022, and you evaluate your practice results, ask yourself what type of leader are you. The delta between your goals and actuals is a good indicator of a leadership opportunity. As you recognize the opportunity, and develop a plan to move forward, please keep one thought in mind. Your staff is much like a garden. To create a healthy garden, you must prioritize care and treatment. Communication is the water that keeps the garden growing. From full staff meetings to one-on-one conversations, communication is key to growth. Supporting your staff through incentives, paid time off and bonuses is the nourishment that drives staff development. So please attend to your staff and watch morale and profits grow. If you’d like to build a high morale high functioning team for your practice, contact me smays@impactpracticeconsultants.com.