While one approach to employee morale might be-"In these tough economic times, they're lucky to have a job."  This isn't probably going to make anyone's top 10 list of how to handle staff and employee issues.

The old adage "No one is an island" is apt and still true.  No company survives without good, faithful, hardworking employees.  In tough times, those employees need to be assured that they are valuable and valued.  So, how do you do this without increasing your bottom line?

First, be honest and open about your company's fiscal health in these uncertain times.  Tell them how things are going and what steps are being taken to ensure their job security and the long term viability of the company.

Second, make them part of the solution not the problem.  If your company is struggling, solicit their advice and their ideas on how to improve productivity.  Ask them about what would make the company better. They're on the front lines, they may know certain things about the operation that could help in the long run.

Third, reward productivity, loyalty, and commitment.  At times, a simple thank you will suffice.  Other circumstances may warrant a promotion or more responsibility with an increase in salary.

Fourth, if there are employees who refuse to get on board with the mission and vision of the company, get rid of them.  Nothing hurts morale more than disaffected workers or naysayers.  If you have folks who are consistently undermining your efforts, it's better to give them their walking papers.

A company, irrespective of its size, is a team.  In order to be effective and productive, it has to be healthy and single-minded in its purpose.  This is not to say that differing opinions can't be tolerated.  However, in the end, everyone needs to be on the same page.  If you want dedication and loyalty from your employees, show them the same and you'll produce results.