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Final Proposal ENG 211

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April 20, 2014
Oliver King, CEO
King Consolidated
500 East Blvd.
Seattle, WA
Dear Mr. King
I am answering to your request for proposals regarding the pressing issue your company faces
with low employee morale. This issue represents a serious concern to all businesses that aim for
success. Having unhappy employees can lead to a serious reduction in productivity, a decrease in
the quality of the services offered, increase in customer dissatisfaction, less employee retention
and loyal and an overall weaker company. We have the experience, knowledge and skills
necessary to that this problem and present you optimal solutions.
Our Qualifications, Technique and Proposal
Low employee morale is unfortunately quite a common problem and its causes are multiple. Our
consulting service has been dealing with this issue for more than four years now. We have
obtained great previous results with most of the companies we worked with on this issue, most
notable being MegaMerlyn Corporation and Slade Industries. I have the utmost confidence
together we can achieve similar, or even better results.
Your company’s problem with low employee morale is neither rare nor insignificant. Actually,
despite its prevalence, it’s quite a costly affair. According to Gallup’s estimations, the American
economy loses as much as 350 billion dollars every year due to around 22 million employees
with decreased productivity due to low employee morale. Furthermore, it has been found a
direct correlation between low morale and a number of wanted employee behaviors such as:
unjustified absenteeism, lack of discipline, insubordination and declined performance on the job
(State of the American Workplace: Employee Engagement Insights for U.S. Business Leaders,
2011).
Our work consists in an extensive analysis of your company, the identification of issues that
affect employee morale and proposing practical solutions backed up by scientific data. The
following report will contain the results of our investigation in your company, the conclusions
drawn from the gathered data and our recommendations designed to improve your situation.
Defining the Problem
Employee morale can be defined as the spirit, motivation and attitude of workers employed by a
certain enterprise. Low employee morale is a common problem encountered by businesses. Its
implications are numerous, but by far the most important one is that of reduced productivity. It

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can also impact the company’s reputation, the willingness of employees of following directions,
their level of attendance, engagement, etc. Low employee morale can be very costly and hurtful
on long term (Novotney, 2010).
Low morale breeds an environment of decreased productivity and performance. This in turn can
lead to lower profits and eventually even to financial instability. In today’s highly competitive
economy a company that desires to remain an industry leader must seek to eradicate this
plaguing issue. Undeniably, the ultimate goal of any employer should be achieving the seemingly
elusive goal maintaining a very high level of employee morale which is almost synonymous with
workers that are giving their best on the job (Novotney, 2010).

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Identifying the causes
We have started our analysis of King Consolidated by asking your employees to answer our
surveys and respond in a number of interviews designed to identify the underlining issues when
it comes to low employee morale. As a result of our efforts a significant amount of data was
generated. Even though in some situations low employee morale is hard to detect, the fact that
you asked for proposals on this matter means you have detected it among your ranks. Our
analysis has managed to confirm your observations with the help of the aforementioned
techniques.
According to the data we have managed to gather one of the main root causes for the low levels
of employee morale at your company is the lack of open communication. It appears that, a large
percentage of your employees are feeling that there is no open line of communication between
the upper management and the rest of the workers. A significant number of employees feel that
their insight into improving the work procedures and the products that are being developed is not
seriously being taken into consideration.
Moreover, another of the main underlining causes for low levels of morale we have managed to
identify is that of confusion and misunderstood expectations. The data shows that many
employees feel that the management’s expectations of them are not clearly defined. Furthermore,
your employees also seem to be of opinion that your company’s goals are changing too often.
This leads to a feeling of lack of stability, of exhaustion, discouragement and lack of
accomplishment.
Finally, probably the biggest issue by far, one that exceeds all those mentioned previously and
has been mentioned the most times, is dissatisfaction with the salary and the financial benefits
received. This is certainly not an issue that should be underestimated or ignored.
1
2
1 Chart showing the percentage of employees that identify those issues as part of their morale
problem
2 Visual aid meant to help the understanding of the relationship between wage and employee
productivity as show in (Sebastian Kube, 2011)

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