Why scare tactics are never a good strategy to boost employee productivity

During times of economic uncertainty when jobs come at a premium, everyone is under stress. Business owners, managers and other executives are under pressure to try and maintain a healthy financial outlook, often having to report to shareholders. On the employee front, people are worried about keeping their jobs or pay cuts or loss of other benefits.


When under stress and uncertainty, people tend to act differently than their norm. For instance, some employers, perhaps out of desperation, resort to threat tactics and other demotivating approaches in an effort to increase performance and profitability.

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This is a bad idea.

Sure, issuing threats may produce short-term results, but in the long-term, these scare tactics are likely to prove costly. Company managers who neglect to respect their employees and focus on increased morale are more probable to experience higher levels of turnover once economic conditions cease. Here's why:

Job market goes in cycles


If history is any indicator, rocky economic times always cease at some point. (The current market statistics indicate it is very much a candidates market in 2018.) And when it does, more jobs open up for people to move on. Even after the economy picks up, some employers may continue to use scare tactics in order to get more from employees. Perhaps this is especially true now that mobile makes people accessible around the clock. If one person isn't willing to be available during the off hours, another person might. However, chances are as soon as another opportunity presents itself, that employee will be off and running to a better situation.

Short-term vision


Managers who employ scare tactics in the pursuit of profitability, in the end, will usually harm themselves in the long-term. Employees typically are not going to respond well to these kinds of techniques and, in the end, will suffer low morale. Granted, during a recession people may respond to these tactics out of fear of having no income, but they will likely not work to the best of their ability, decreasing potential performance anyway.

Once the job market picks up, those employees who feel devalued and mistreated are going to make a run for it at the first opportunity to pursue new employment. Higher turnover rates result in increased costs for recruitment, application process, hiring and training new employees. These expenses would have been unnecessary if management had invested in employee morale instead of using outdated and negative managerial techniques to motivate performance.

Why employers should strive for high morale


There are many advantages for employers who make strives to invest in improving morale rather than trying to stifle it. Threats and intimidation do not work for the long-term and while it may be effective during times of uncertainty when people fear for their jobs, this is not going to fly forever.

Instead of focusing on negative motivational approaches, managers are better off looking to invest in positive motivation to increase morale rather than trying to defeat it. An employer who invests in motivational approaches that encourage enthusiasm, appreciation and respect will find this much more profitable in the long run.

After all, are there really any benefits to creating a work environment full of negativity, fear, and most importantly, lowered morale? If you think about it, there is nothing to be gained out of this except perhaps a short-term boost in productivity, and not even good productivity.

Establishing a workplace plagued with low morale benefits no one. The better approach is to invest in motivational techniques to increase morale. As a result, employees will be happy with their jobs, be more productive, and possess high levels of morale. All of which will increase value to the business and boost profitability and employee loyalty in the long run.

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