Underemployment: Impact on Business and Strategies to Prevent it

Underemployment

Table of Contents
INTRODUCTION ..........................................................................................................................3
TASK ..............................................................................................................................................3
CONCLUSION .............................................................................................................................10
REFERENCES..............................................................................................................................12

INTRODUCTION
Underemployment is a situation where there is lack of workforce with unavailability of
workers in the area of companies, industries or workplace. It is also the situation where skills or
talent of the employee is not valued which forces the workers or employees to give up their work
in order to recognition. Generally, underemployment is caused due to lack of jobs at workplaces
which is mainly due to unavailability of jobs in organisations. Sometimes the companies or
organisations pay less to the employees or workers which forces them to leave their jobs. This
situation of underemployment is very uneconomical for growth and development of any country.
The efficiency, productivity and skills of the employees is misused or wasted due to this situation
of underemployment. When an employee is not able to work full time which causes less use of
his skills leading to hamper his financial needs causes the situation of underemployment. The
main reasons of underemployment are extremely severe and critical economic situations that
affects the growth of a company or organisation. The decline in economic growth of a country
also causes the situation of underemployment which affects the performance and growth of an
employee(Cuestas and Gil-Alana 2018). This situation also leads to less or not full use of
resources by employees which affects the overall development of employees. The main aim of
this report is to examine the impact of underemployment on business organisations and the ways,
methods and strategies that may help in preventing the situation of underemployment.
TASK
The situation which causes the deteriorating conditions of employees due to lack of work,
workforce and jobs in companies, organisations or industries causes underemployment. The
manner in which the labours are employed with part time jobs which does not regulate with their
professional or financial needs. This is a very alarming situation in consideration with the
efficiency and productivity of employees which must be improved in order to regulate the
working standards among employees.
Objective
The main objective of underemployment and the situation of insufficient employment is
to eradicate such problems of employment from the working industry (Driffill 2018). It aims to

provide a stable base of employment for employees in order to manage their economic needs.
The jobs of employees is so insufficient that it affects his performance and growth in the
company (Fakih, Haimoun, and Kassem 2020). This leads to improving the standards of
organisations by providing productive work to the employees and also contributing in improving
their skills.
Such objectives can be achieved by taking following measures in order to improve the situation
of underemployment which are mentioned below:
 The standards of the company should be improved in order to provide and enforce
productive work for growth of employees as well as the organisation.
 There should be proper and appropriate training of the employees in order to give them a
descriptive idea of particular work or task done by them.
 The skills and performance of employees should be improved by providing them regular
training for implementation of productive work in the organisation.
 Government should also provide sufficient and adequate opportunities for enforcement of
a stable and productive work force.
 The employees should be offered job according to their skills and capability which may
enable them to execute productive results for growth of the company or organisation.
Time scale
This situation refers to the condition of underemployment which is formed due to need of
additional hours for working with load of extra work. When employees are not able to work
according to the required task or have worked less in comparison with the allotted hours. The
situation where employees could have worked for additional hours if provided an opportunity for
working. All these situation form the condition of time scale in underemployment.
Brief background of the problem
The change in economic conditions of the country with fall in growth of economy caused
the problem of underemployment. The condition of recession which causes decline in the
economic growth of the country also created the issue of underemployment. This situation arises
when skills of the employees are not used in a productive way which adversely affects the
performance of employees (Hauser, and Burrows 2018). The increase in population with more
supply of workers in comparison to less demand of workers also created the lack of employment
in corporate sector. This increase in population with less availability of opportunities created a