Abstract:
Sri Lanka faced a severe economic crisis post-COVID-19, with hyperinflation causing immense stress. This crisis worsened underemployment and job insecurity, raising concerns about employee productivity. The study, a pioneer in Asia, aimed to explore how these economic stressors affect perceived productivity among Sri Lankan workers. Through convenient sampling, the survey used 384 respondents from the public and private sectors. The study used Smart PLS software and structural equation modelling to show that underemployment and job insecurity significantly reduce perceived productivity. The analysis revealed weak relationships between underemployment (β = 0.105) and job insecurity (β = 0.198) on perceived employee productivity, with only job insecurity showing statistical significance (p = 0.023), indicating a moderate yet significant negative effect. This highlights the importance of managerial and organizational interventions like enhanced employee engagement, providing a safe work environment, organizational support, and fostering job satisfaction to mitigate these stressors in the long run.
