Employee morale doesn't have to break the bank, survey says

Staffing companies and human resource professionals know that high employee morale may help improve employee retention and company growth, but boosting morale doesn't have to affect a small business's bottom line, according to a new survey.

Human resources outsourcing company TriNet reported this week that small businesses that are concerned with their working capital but are still looking to improve employee morale may want to invest more in corporate culture and reputation than in payroll and benefits.

Thirty-six percent of small business owners found company culture and reputation were the most important factors in their employees' morale, compared to 9 percent for compensation and 5 percent for benefits.

The keys to maintaining good company culture and reputation, according to the largest group of respondents, are good communication and quality management practices.

Although the survey results make it tempting to cut health care packages and substitute company picnics, TriNet advised small business owners to continue to pay attention to the fundamentals, such as benefits and payroll.

"A total compensation package that includes both work environment and financial factors, like a comprehensive benefits package, will protect and expand an organization’s employer brand regardless of the economy," TriNet reported.

Although high morale is an easy way to boost employee retention rates, hiring new talent is also an important indicator of company health.

According to the June SurePayroll Small Business Scorecard, small business hiring increased 0.7 percent in the second quarter.