Cost of living | The alarming link between financial pressure and employee performance

Almost half of employers (46%) believe financial pressures are one of the main external factors affecting employee underperformance.

The survey conducted by employment law and HR consultancy firm, WorkNest, has also revealed that 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.