Raise morale? Easy. Here's how to be a great boss...
Steps:
1. Stop all "group hug" meetings. The team-building exercises are stupid and a complete waste of time.
2. Fire assholes. Every firm, for some strange reason, keeps a couple total asshats on staff. You know who they are. Find a way to rid yourself of them.
3. Take the time saved by not having group-hug meetings and add it to the time saved from not having to deal with the asshats, and give everyone every other Friday afternoon off. Heck, make it from 11:00am and have a "suggested lunch meeting spot" that is not an obligation, but let it be known that you're buying some appetizers.
4. I guarantee that #1-3 will increase productivity. Use a portion of the gains to close the office between Christmas and New Years and the time off is with pay.
This worked for me. I had a to-the-death-loyal staff, next to nil turnover, and we had fun and all made a great living.