While this tactic has the potential to boost employees’ morale and engagement, there’s always the chance it could backfire.

For example, if employees get the impression they’re being taken advantage of, it’s no small feat to regain their support. In addition, there’s an array of negative effects — low morale, decreased productivity, disobedience and even a blatant lack of respect for management.

If you’re thinking about promoting someone without bumping up his or her paycheck take some precautions.

Example: Don’t make it too much of a jump. If an A/P clerk suddenly finds himself managing the entire department without moving up a pay grade, eventually you’ll get hit with some backlash. And this staffer will likely jump ship whenever the first opportunity presents itself.

Also, even if you can’t increase someone’s salary, it pays to do something — whether it’s a free lunch, a small gift certificate or even a one-time bonus.

Readers, does your company promote people without giving them raises? Let us know about it in the Comments section.

Failing to do so can result in major drops in morale, and even productivity.

Here’s a three-part strategy on the most effective way to keep employees informed when it comes to company changes:

1. Give ‘em the reasons behind key changes. Many people have difficulty with change. To lessen the blow, it’s a good idea to give employees some of the logic behind Finance’s big moves. Example: Sending company-wide e-mails linking to news stories about why certain decisions were made.
2. Explain the financial impact of all major decisions. If there have been problems, spell out the costs of mistakes, low productivity, etc. On the other end of the spectrum, show employees the tangible benefits of doing things in a new way.
3. Prepare for tough questions ahead of time. If a decision impacts affected employees in a major way (reduction of overtime, furloughs, etc.), be prepared for a barrage of questions. Planning ahead will allow you to provide staffers with the best possible answers.

Readers, how does your company keep employees “in the loop” when it comes to major decisions? Share it with us in the Comments Section.

Here’s a few creative morale boosters from some forward-thinking organizations:

Give some extra help. One firm’s president let workers use company cell phones, copiers and even vehicles for errands. The move did slightly increase the company’s costs; however, it also helped ease employees’ stress. Result: a more motivated, focused workforce. The president kept an updated schedule of what was in use, so all deserving employees got a chance to use whatever equipment they needed.

Kick back time. To improve morale, a manager at a CA-based transportation company doled out “E-time” — short for “earned time.” People could use their E-time to come in late, duck out early or spend time in the E-time room — a green room of sorts complete with a couch, video games, cable TV and Internet access.

Employees earned time for the following:

• 15 minutes for correctly answering the “Question of the Day” — a daily quiz about procedures or company services
• 15 minutes for exceeding goals and standards, and
• 30 minutes for receiving an unsolicited compliment in writing.

Has your company done something creative recently in an attempt to boost morale? Share it with us in the Comments section.

Eliminating retirement benefits can kill morale and give on-the-fence employees yet another reason to jump ship. Here are four ways to hold off rising retirement plan costs now:

1. Revisit and compare. The first step is to determine exactly how much your firm is paying (administrative fees, management fees, etc.), as well as how the plan has performed. Next, do a side-by-side comparison with the competition.
   Reason: It’s true that most retirement plans have struggled over the last year, but certain plans have had much more positive results than others. Enlisting the help of a benefits consultant or an outside advisor can also be very helpful here.
2. Renegotiate, renegotiate, renegotiate. The market has hurt everyone — including retirement plan providers. The last thing they need is to lose valuable customers, so many will be open to renegotiating your current rates.
   Key: For better deals, come to the renegotiation process armed with bids from the competition.
3. Check out small business-friendly providers. Certain retirement plan providers base fees on factors such as service offerings and the number of plan participants — regardless of what assets are in the plan.
   For small firms, especially those with lots of assets, this type of fee structure can be extremely beneficial.
4. Bundle services. Does your provider have any major price hikes in the works? If so, it may be worth it to try brokering a deal with one of your other service providers.
   For example, a NY-based company was hit with a $3,000 charge to reinstate its 401(k). Instead of giving in, the firm opted to change providers. It went with the company that handled its payroll, which offered a discount. The company ended up saving $500 a year.

1. Has inclusive outlook. Especially in smaller businesses, it’s important for everyone to feel equal and part of the team. A good boss treats every employee fairly, not only in terms of salary and compensation, but also in how each takes part in day-to-day work activities. Exceptional employers create an inclusive workplace environment based on mutual trust and respect, so employees feel valued and engaged.

2. Concerned with the big picture. Though all businesses are concerned with profit, a good boss establishes an authentic mission statement to motivate employees. Giving employees something to focus on aside from money will give their daily routine a deeper sense of meaning and purpose.

3. Not afraid of mistakes. When employers come down too hard on workers who have made mistakes, other employees will think twice before tapping into their creative sides. A more effective boss encourages his or her employees to try new things without being too wary of consequences.

4. Keep employee concerns in mind. A successful boss will remember that employees are looking to navigate and advance their own careers. Helping workers improve their careers and reach their ultimate goals will boost morale and build an atmosphere of trust.

A good place to start: making sure HR is keyed into what employees find most important when it comes to job satisfaction.

So, what rates most important when it comes to job satisfaction for the most workers? According to a recent survey from the Society for Human Resource Management (SHRM), the most important factors are job security and benefits.

Check out the chart below for a more-detailed breakdown.

If your firm knows with certainty that there won’t be any impending job cuts ahead, make the most of that info.

One way: Hold a company-wide meeting and have someone from upper management explain that, despite the economy, there will be no layoffs. With job security top-of-mind for most workers, this announcement can go a long toward relieving employees’ stress levels — and boosting morale.

While most prima donnas bring some unique strengths and skill sets to the table, managing this type of employee can present a real challenge because of problems getting along with other employees, failure to follow directions, unreasonable demands, etc.

Almost always, managers end up asking themselves: Is this high-maintenance staffer really worth all of the aggravation?

One of the best ways to make that determination is by answering the following questions first:

1. How is this employee affecting others’ morale? (are good staffers jumping ship — or threatening to — because of a said employee’s diva-like behavior, etc.)
2. How much extra time is spent dealing with this employee and his/her drama?
3. Is this employee really the only person who can handle the assignment?

The answers should help to shed some light on how to handle the situation.

Sometimes severing ties with a problem employee can provide a much-needed boost to your entire department. Example: Employees scramble to fill the void caused by the prima donna’s absence and morale skyrockets. You may also discover other staffers have previously untapped skills.

Here’s some of the most common workplace dysfunctions — and what to do about ‘em.

Conflict: Zero teamwork because employees are at odds. Instead of a cohesive unit working together, you’re stuck with a group of individuals — with conflicting ideas about how things should be done.
Cure: Have the direct supervisor get together with all conflicting staffers, find the root of the problem and what it will take to solve the problem. Be sure to land a commitment to resolve the problem and spell out what the consequences will be if the resolution doesn’t happen.

Conflict: Undercutting company programs and initiatives in private — after publicly endorsing them. Everyone knows this staffer: He or she is the most vocal proponent of an idea at the weekly meeting. Then, lo and behold, this person is going around the office trashing the idea.
Cure: The best way to fix this is by getting others on board to what is and what isn’t accepted. Let staffers know that dissenting opinions are welcome during the decision-making process, but after the decision is made undercutting will not be tolerated.

Conflict: Pot-stirring, chaos-starting staffers. These employees love drama and are very crafty at finding ways to get people to mix it up in the office.
Cure: This behavior can be catastrophic to the morale and productivity of your office. So the best defense is a zero tolerance policy with greater negative consequences.

These may be the toughest four types of people to have to work with. But if you’ve got ’em, here’s how to make it work.

How many of these folks do you recognize as you scan your department?

Type 1: Even Steven

You just can’t win with this person. He is always keeping score. You’d swear there was a spreadsheet on her PC where he’s keeping track of who’s getting which assignments or perks  — and who isn’t.

This can be especially tricky these days, when there can seem like there’s more work than people to go around. Even Steven’s always keeping an eye out to make sure no one’s getting better or bigger assignments.

Best way to handle: No doubt you work hard to create a fair workplace. Your best defuser of the Even Steven? Praise. By sincerely complimenting all members of your team, this person will be a little less likely to keep score.

Type 2: The Positioner

“Ulterior motive” is this person’s middle name. Every question asked or statement made seems like a positioning effort. That can make you second guess even the most innocent of behaviors. After all, you never know what this person is setting the stage for next!

Best way to handle: You have to take this person with a grain of salt for sure. At the same time, it can help to have an in-depth conversation with this staffer about his or her real career goals and aspirations. If you understand where they’re really trying to end up, you may better see what they’re trying so hard to jockey for all the time.

Type 3: The Know-It-All

A problem with a spreadsheet? Thomas knows how to handle it. Wondering why Marissa seems a little unmotivated lately? Thomas has the answer. Bet he even knows what’s wrong with the company coffee pot! This individual knows everything about everything.

Best way to handle: Thank Thomas for his input … and then ask another staffer for an opinion. The last thing you want is for other members of your team not to want to contribute because they think the Know-It-All has it all covered. Another good strategy: Use the word “we” when speaking to this person. That way the message is being sent that we’re working together — it’s not a competition to see who knows the most.

Type 4:  The Pot Stirrer

Here’s another tricky personality — especially at this time. Many folks are already nervous about everything from their job security to their retirement plans. Having a co-worker who likes to add fuel to the fire is the last thing any manager wants right now.

Best way to handle: Keep an ear out here. First of all, you want to squelch any gossip and rumors as soon as you get wind of them. You might even consider having periodic team meetings where everyone can put concerns out in the open. If the pot stirrer thinks there’s a chance he or she will be pointed out as the cause of the drama, that person may be less likely to stir up trouble.

Have we missed any? Share your votes for the most annoying personality type here.

Those are some of the notable findings from the most recent CIGNA “Health and Well-Being in America” survey series.

In fact, according to the study, 65% of workers “live to work,” and 21% said they would keep working even if they won the lottery!

Not surprisingly, however, the mood inside the office is considerably bleak lately. Check out the graph below to see how your firm stacks up.

If the overall mood of your office is suffering greatly, so too can productivity, morale and more. If the market, past or upcoming layoffs, salary freezes, etc., have taken a toll on your finance department, check here for proven (and cheap) morale and productivity boosters.