Morale boosted by 'honest leaders'

Date: 07/12/2009

Organisations must ensure they do not make a motivational problem worse by installing incentives and recognition arbitrarily, according to a new report.

Dave Conrad, a business expert at the Post-Bulletin, said that businesses which try in vain to stimulate the work of employees after a long spell of showing little commitment can be futile and can sometimes make the situation worse.

However, by conversing with employees and holding their hands up to admit fault, firms can start to improve morale and, in effect, business performance.

Ron Menaker, an administrator at Mayo Clinic, told the expert that honesty is absolutely essential for employee relationships to be effective, necessitating regular conversations through the likes of team building conferences, even if news continues to be bad in the recession.

He continued: "Experience and research on leadership has shown me that my relationships are enhanced when leadership is honest.

"People value straight talk, even when the news is not good and that is why they are called crucial conversations."

This month, Inside Retailing warned businesses that organisations can regularly see mass departures after the New Year, but that an adequate incentives and recognition scheme can help a company hold on to workers so long as it is implemented correctly.

Posted by Michelle Fry

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