Company culture: How to boost workplace morale

Here's some context: Why is company culture suffering?

The global startup sector is navigating a period of severe turbulence following a steep drop in valuations in the months leading up to Q4 of 2022. Coupled with interest rates increase and soaring inflation, Tech companies are looking to combat low valuations by creating cost efficiencies across the board. For example, Meta – Facebook’s parent company – announced their plans to reduce staff by 13% in their first ever mass layoff, equating to roughly 11,000 jobs.

Plus, we’ve witnessed significant layoffs from an array of companies, including Zapp, Gorillas and Getir which also announced a 14% reduction in staff numbers.

As a founder, you witness the impact on the morale of your teams, and increased distraction at a critical time. What’s in your control?

Step 1: Communication really is key

In our study, one-third of UK workers told us they’ve seen their workplace’s headcount decrease and their workload increase in the last 12 months. Plus, 1 in 5 employees said their firm was too slow to react and adapt, resulting in a loss of staff.

If you’ve noticed a drop in staff recently, give your employees the opportunity to express their concerns and communicate their ideas. Burnout is a big driver of employee resignations, with our research revealing that 64% of Brits are happy to compromise career goals to preserve their mental health.

It’s also worth noting that with increased remote work, rates of burnout have also been found to rise. That’s because remote workers are losing out on all the "non-official" support from in-person interactions and the general uplifting energy you get from working as a team.

By giving your team an opportunity to share their concerns, whether they're about workload or more general anxiety, you reduce the chance of burnout and give yourself a chance to address it.

Step 2: Be open to pay rises

As a founder, do your best to ensure your offices remain positive environments where people want to work by having open discussions about salary increases.

You’ll see in Claire Trachet’s conversation with the Raconteur that workload pressures and the rising cost of living are contributing to a staff exodus across the sector.

Rather than worrying about the short-term expense of pay rises, view these as an investment for when the conditions return to normal. Remember this: Staff may be exploring opportunities for higher pay elsewhere, so it is better to be proactive in order to keep hold of your most valued staff.

Step 3: Start at the top

Company culture begins at the top, with the founder and C-suite team leading by example.

As a founder, you’ll likely feel heavy pressure from running your business – especially with all the different hats you have to wear. From finance and fundraising to product management and mentoring or coaching your team members, you often take on a series of responsibilities that can end up being overwhelming. Add to that the pressure from operating with a constantly moving target - given the current economic environment - it’s no surprise it gets (very) lonely at the top.

Remember, you can’t pour from an empty cup. Consider bringing in a specialist – even if on a fractional basis – to support you. Our fractional services can provide an illustrative example example here.

This can help you find increased confidence and accountability, with the support from someone who’s successfully sailed through a few crises before (operational crises, financial crises, leadership crises,…). The point being to help you keep sight of the bigger picture.

Company culture often gets pushed down to the bottom of the priority list. Beware if you feel it slipping! It takes much longer to (re)build than to erode, and is your non-monetary treasure chest.

A final note: Something to remember

In recent years, your industry has attracted the best of UK talent thanks to competitive salaries, forward-thinking company culture and big flexible working benefits. As you grapple with reduced funding and other financial pressures, don’t lose sight of the incredible talent you’ve managed to source. If you & your team are starting to spread too thin, remember that interim/fractional (experienced) professionals exist to support you with the many roles you juggle. We’d be delighted to tell you more about our expertise.