Long used by the military as a "mission-critical" measure of the psychological readiness of troops, high morale has been shown to be a powerful driver of performance in all organizations.
Extensive research demonstrates its benefits in productivity, profitability, customer satisfaction and worker health.
[2] Recognized as one of the major factors affecting productivity and overall financial stability of any business, low morale may lead to reduced concentration, which in turn can cause mistakes, poor customer service and missed deadlines.
Morale can drive an organization forward or can lead to employee discontent, poor job performance, and absenteeism (Ewton, 2007).
High morale effects employee's motivation, their performance, and their willingness to adapt to organizational strategies.
High turnover can cost the business a lot of money, since they will need to now advertise for these positions and pay for new employee training.