Search
Close this search box.

Alarming link between financial pressures and employee underperformance

WorkNest has revealed that almost half of employers (46%) believe financial pressures are one of the main external factors affecting employee underperformance. Homeworking (17%), childcare responsibilities (14%), and time management (13%) were also cited as key factors affecting employee performance.

A recent survey* has revealed that almost half of employers (46%) believe financial pressures are one of the main external factors affecting employee underperformance. Homeworking (17%), childcare responsibilities (14%), and time management (13%) were also cited as key factors affecting employee performance.

The survey also found that mental health and work-related stress were significant internal drivers of underperformance, with almost a third of employers (30%) identifying it as a cause for concern. In addition, ineffective leadership (28%), poor conduct (20%), and lack of formal training (15%) were uncovered as additional factors affecting employee performance.

“Employers must recognise that financial pressures due to the rising cost of living are now a major factor in employee underperformance,” said Danielle Scott, Employment Law Adviser and Solicitor at WorkNest. “By prioritising open communication and building relationships with their employees, employers can identify and address the real issues that impact their team’s performance, ultimately improving productivity and reducing the risk of grievances and absenteeism.”

Where challenges exist, employers also expressed concern about their line managers’ ability to handle conversations about underperformance, with 27% reporting they had provided inadequate training. If mishandled, the impact can be significant, with 25% of employers finding that grievances crop up out of the blue or see an increase in sickness absence.

Danielle added, “With over a quarter of line managers struggling to handle conversations about underperformance, employers must take action by providing them with training and guidance on how to address these situations. Conversations can be awkward if they don’t know how to approach them. By having regular reviews with an employee on performance management, line managers can increase employee engagement and motivation as well as provide clarity on individual and team objectives. Line managers also have an opportunity to identify training gaps and development opportunities through regular conversations for those team members that might require extra support.”

*Research by WorkNest

    Read more

    Latest News

    Read More

    How to elevate your delegation and accountability impact

    18 March 2024

    Newsletter

    Receive the latest HR news and strategic content

    Please note, as per the GDPR Legislation, we need to ensure you are ‘Opted In’ to receive updates from ‘theHRDIRECTOR’. We will NEVER sell, rent, share or give away your data to third parties. We only use it to send information about our products and updates within the HR space To see our Privacy Policy – click here

    Latest HR Jobs

    Guildhall School of Music & Drama – Guildhall School of Music & DramaSalary: £30,180 to £33,120 per annum including London Weighting depending on experience, Grade B

    Human Resources Coordinator To assist the HR Manager and the Director of Human Resources in maintaining positive internal and external relationships with both Associates and

    My client a Global Communications firm, are looking to expand their HR team by hiring a People Partner to look after their Paris and Bussel’s

    Be part of a business that continues to grow and develop. You will be based in a regional office, and be required to travel accordingly

    Read the latest digital issue of theHRDIRECTOR for FREE

    Read the latest digital issue of theHRDIRECTOR for FREE