Recruitment Insight

How high is your SaaS / Tech company’s team morale?

In today's DigiTech Leaders Series, Skylan's MD Paul Foster explores employee morale, an essential but often overlooked aspect of a thriving workplace. In this video, we'll explore the concept of employee morale, why it matters, and how to measure it. Let's dive in.

Employee morale is the overall attitude and feeling employees have towards their work, co-workers, and company. High morale leads to improved engagement, productivity, teamwork, communication, profits, and low turnover. On the flip side, low morale can result in high turnover, poor retention rates, and a fractured work environment.


High morale not only benefits employees personally but also the company as a whole. Employees with positive morale experience reduced stress-related health issues and greater overall work-life satisfaction. In fact, 9 out of 10 employees would be willing to take less pay for more meaningful work.


On the other hand, low morale can lead to a cascade of problems. Employees become disengaged, potentially leading to mistakes due to reduced effort. Toxicity, gossip, and tension rise, negatively impacting the work environment.


So, how can you measure employee morale? Let's explore several methods:

Send a Company-Wide Survey

Gather feedback from employees through surveys. Ask about their work environment, management style, and company culture. Pay attention to how well the company is living up to its purpose and mission. Anonymous surveys may be helpful in cases of low morale, encouraging honest feedback. Observe Employees' Actions & Behaviors Pay attention to changes in employees' behavior, such as body language, social cues, and performance. Identify patterns among disengaged employees and communicate with them with empathy.

Conduct Employee Interviews

Conducting interviews with employees can provide valuable insights into their job satisfaction, motivations, and suggestions for improving morale.

Analyze Performance Metrics

Review performance metrics, such as goal achievement, task completion, and attendance. If productivity declines or errors increase, it may indicate low morale.

Assess Turnover Rates

Examine employee turnover rates. High turnover, especially above 25%, could be a red flag for low morale. However, consider all the above factors when evaluating morale.


To address low morale effectively, it's essential to identify its causes. Some common causes include:

Lack of Connection to Company Purpose

Employees should feel connected to the company's bigger purpose and understand how their work positively impacts others.

Limited Career Growth Opportunities

Employees value career progression. If growth opportunities are limited, it can lead to reduced morale and engagement.

Low Pay and Lack of Raises

Inadequate compensation can demotivate employees and lead to low morale.

Toxic Work Environment

Negative workplace culture, such as bullying, harassment, or gossip, can severely affect morale and well-being.

Lack of Resources

Employees need the right tools and resources to perform their tasks effectively. Insufficient resources can lead to frustration and lower morale.

Insufficient Recognition and Feedback

Recognizing and affirming employees' work is essential. Lack of recognition or feedback can lead to morale decline.


In conclusion, employee morale plays a vital role in the success of any organization. High morale leads to happier, more engaged employees and improved business outcomes. Measuring morale and addressing its causes are crucial steps towards creating a positive and productive work environment.