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Employee personal problems
Blog Post

Employee Personal Problems Can Ruin Your Business

5 min read · August 23, 2017

How personal problems affect employee performance and productivity

Rising rates of depression and mental health concerns are contributing to this challenge. Personal problems, such as mental health struggles or family matters, can affect an employee's ability to perform effectively. The increasing prevalence of struggles in the workplace highlights the need for businesses to proactively address these issues to prevent negative impacts on performance.

Employee struggling with personal problems affecting workplace performance

Research shows that nearly half of employees report personal issues negatively impacting their work. This highlights the need for businesses to identify the problem early and address these concerns to maintain productivity. However, many employers lack the tools and training to manage personal problems at work effectively, which is a gap that businesses must strive to fill.

Despite the growing need for intervention, few official training programmes are available to help managers navigate these issues. Without clear guidance, managers often struggle with how to handle sensitive situations while maintaining business performance. That's why businesses must develop strategies to support our staff through challenging times, ensuring that issues do not lead to a decline in productivity or morale.

Acknowledging these challenges and providing proper support can foster a healthier, more supportive environment. This approach will benefit both our employees and the organisation as a whole, improving not just individual performance but also overall business outcomes.

The impact of personal problems on employee performance

Personal issues, including mental health struggles, family problems, and financial stress, can significantly affect an employee's performance. A study by Bensinger, DuPont & Associates found that 47% of employees report personal problems impacting their job performance. This data highlights the growing need for businesses to understand the problem and how challenges affect work output.

Personal issues don’t just affect individuals, they also impact the entire team. When personal struggles are left unaddressed, these problems lead to:

  • Reduced productivity
  • Increased absenteeism
  • Lower morale
Employee absenteeism impacting team productivity, causing disruption and delays in workplace operations.

As personal issues spread across the team, they disrupt not only individual focus but also team dynamics. Ultimately, this affects the business, leading to reduced overall efficiency. It’s clear that businesses need to address problems promptly to prevent long-term damage to team performance and company results.

How depression and personal problems impact work performance

Depression and other mental health issues are increasingly common in the workplace. Research shows that around 1 in 5 Australians will experience mental health problems in any given year. Mental health directly affects employee performance, and the workplace is no exception. According to the Black Dog Institute, people with depression miss an average of 4.6 days of work per year due to mental health issues. Beyond absenteeism, depression can lead to presenteeism, where employees are physically present but disengaged or unable to perform at their best.

Anxiety, stress, and other mental health challenges contribute to reduced productivity. Employees facing personal problems often find it difficult to focus on tasks. This leads to errors, missed deadlines, and a lack of motivation. If these challenges remain unaddressed, they can persist and cause long-term negative effects on business performance. Investing in mental health support for employees can drastically improve overall efficiency and job satisfaction.

employee facing mental health challenges in the workplace, addressing employee well-being in business

Managers' challenge in handling personal problems at work

Managers face a complex challenge when personal issues begin to impact job performance. Without formal training, many managers struggle with how to approach sensitive topics with employees. Balancing empathy with professionalism becomes difficult when issues affect work outcomes. In some cases, managers may not even recognise that struggles are behind declining performance.

Managers must learn to identify the problem early. They must understand the underlying issues and address them through a systematic problem-solving process. This helps mitigate the impact on business operations and maintains employee morale. Defining the problems employees face is crucial to understanding how these issues affect their ability to work effectively.

Managers need to develop problem-solving skills to better support employees during difficult times. The key is finding practical, actionable solutions to address personal problems while maintaining high levels of performance.

Manager discussing personal issues with an employee in a professonal setting, addressing the impact of personal problems >
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  Strategies to support employees with personal problems at work
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  Supporting employees through issues requires balance. While managers want to help, it’s important not to compromise business needs. Creating a supportive environment fosters trust, but managers must set clear boundaries to avoid stepping into areas outside their responsibilities. Managers must understand their role and the limits of their support. This ensures their approach is both professional and effective.
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  1. <strong>Ensure workplace factors are not contributing to personal problems</strong>
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  Managers must ensure that workplace factors aren’t contributing to personal problems. Work-related stress, unrealistic expectations, and poor communication can exacerbate personal struggles. Identifying the problem early and addressing it is essential for improving the problem-solving process within the team. A step-by-step approach is vital in creating a <a href=healthier work environment for all team members.

Practical steps include offering flexible working hours. Allowing staff to adjust their hours or work part-time provides them time to address personal matters. Personal leave also offers employees the space to resolve issues without worrying about work.

By offering these options, managers show they care about the employee’s well-being while ensuring the needs of the team are met without interference.

2. Maintain professional boundaries and avoid overstepping

While showing support is important, it is crucial for managers to maintain professional boundaries. It is not the manager’s role to act as a therapist. Asking too many personal questions can blur the lines between manager and employee. Instead, managers should focus on work performance and offer practical solutions to support them in the workplace.

If an employee shares personal struggles, listen carefully but avoid probing into their life. Offer a compassionate response like, “I understand you’re going through a tough time. Let me know how I can help with your work.”

This allows the employee to maintain privacy while feeling supported.

Checklist for supporting employees through personal issues, focusing >
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  3. <strong>Use empathy to support personal problems at work</strong>
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  Empathy is a powerful way to support employees through personal challenges. When employees feel understood and valued, they’re more likely to stay engaged and motivated, even during tough times. Showing empathy doesn’t mean solving the employee’s problems but acknowledging their struggles and offering support.
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  An empathetic approach involves:
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  <li><strong>Being a good listener</strong></li>
  <li><strong>Recognising the employee’s feelings</strong></li>
  <li><strong>Expressing concern in a way that reassures them they’re not alone</strong></li>
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  Saying something like, “I understand this must be difficult, and I appreciate your effort to keep going,” can help build trust and morale.
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  Creating an open, empathetic environment encourages employees to share their challenges. Regular check-ins and open communication help employees feel comfortable asking for help without fear of judgment. An empathetic leadership style strengthens relationships and improves the overall work environment. Empathy leads to increased job satisfaction, loyalty, and productivity.
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  Offering support for personal problems within practical boundaries
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  Finding the right balance between offering support to employees and ensuring business operations run smoothly is crucial. While empathy and understanding are important during personal challenges, managers must also consider the impact on overall team performance. Too much leniency can lower productivity and create resentment among other employees who may feel overburdened. Businesses must find ways to support staff while maintaining productivity.
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  4. <strong>Be kind, but fair in supporting personal issues</strong>
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  Offering support within business limits is key to avoiding disruptions. Being kind doesn’t mean ignoring the needs of the business or other team members. Managers should provide reasonable accommodations that align with what is practical for the organisation.
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  Flexible working hours can help employees manage personal issues without affecting work commitments. Temporary reduced responsibilities or adjusting deadlines where feasible can also provide support. It’s important to ensure that these accommodations don’t disrupt others or create unrealistic expectations.
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  Clear boundaries ensure support is sustainable. Communicate adjustments regularly with the team to avoid misunderstandings. By maintaining fairness, managers ensure that support doesn’t lead to resentment or operational challenges.
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  Knowing when it’s time to let go of an employee with personal problems
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  Despite efforts to help, there may be times when personal issues continue to affect work performance. In these situations, it’s essential to recognise when further support is no longer enough and the employee’s continued challenges are negatively impacting business effectiveness. Letting go can be difficult, especially when personal issues are involved, but sometimes it’s necessary for the individual and the organisation.
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5. Sometimes personal problems affect work performance permanently

When personal issues persist and impact work performance, managers may need to shift to performance management. This means setting clear expectations, providing regular feedback, and focusing on job performance rather than personal struggles. If performance doesn’t improve, more formal actions, including termination, may be necessary.

It’s important for managers to be fair and transparent throughout this process. Communicate challenges clearly and provide the employee with opportunities to improve. Document all discussions and set clear performance targets. This helps employees understand expectations and consequences.

It’s crucial to remember that letting go doesn’t mean failure on the manager’s part. Despite efforts to accommodate personal issues, it may be in the best interest of both the employee and the business to part ways. Handling the process with fairness and transparency ensures the decision is made professionally and respectfully.

Setting boundaries for yourself as a manager supporting personal problems

As a manager, it’s essential to recognise the importance of setting emotional boundaries to protect your own well-being. Supporting employees through personal issues can be emotionally taxing, and without boundaries, it can lead to burnout. While it’s natural to want to help employees, remember that you can’t be everything to everyone. Prioritising your own mental health is key to continuing effective leadership.

Manager showing empathy towards employee, demonstrating emotional intelligence and workplace support in times of personal challenges

Strategies for managers to avoid burnout supporting personal problems

To prevent burnout, managers must establish emotional boundaries and recognise when to step back. Limit the personal involvement you take on in an employee’s struggles. While empathy is essential, it’s equally important to avoid becoming overly involved in team members’ personal issues. Redirecting the employee to professional resources, such as counselling or employee assistance programs, ensures they get the help they need without overburdening the manager.

Creating a structured process for managing employee challenges is another strategy. Set clear expectations for the support you can provide and communicate these to your team. Regular check-ins can help, but ensure they’re scheduled so they don’t interfere with daily tasks.

Seeking professional advice to support personal problems

Managers should feel comfortable seeking professional advice when necessary. Consulting HR or a mental health professional can provide guidance on handling particularly challenging situations. Accessing personal therapy or support networks can help managers manage their emotions and maintain well-being.

By setting boundaries and seeking support when needed, managers can continue leading effectively without compromising their health. This approach allows them to be there for their team while maintaining resilience and longevity in their role.

Manager experiencing burnout while supporting employees, showcasing the challenges of balancing work responsibilities and personal well-being

Supporting employees through personal problems in the workplace

Supporting employees with personal issues is crucial for fostering a compassionate, productive workplace. Balanced and empathetic support helps employees navigate difficult times without compromising performance. However, recognising the limits of support and setting boundaries ensures a healthy work environment for both the individual and the business.

Managers should offer support, such as flexible hours or personal leave, but must be ready to escalate to performance management if personal issues continue to impact business operations. Transparency and fairness throughout the process ensure employees are treated respectfully while protecting organisational goals.

By balancing empathy with professionalism, managers can create a supportive culture that helps employees thrive while ensuring business efficiency. Knowing when to seek external support and when to take action is key to long-term success.

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Important Notice

The information contained in this article is general in nature and you should consider whether the information is appropriate to your needs. Legal and other matters referred to in this article are of a general nature only and are based on RosterElf's interpretation of laws existing at the time and should not be relied on in place of professional advice.

RosterElf is not responsible for the content of any site owned by a third party that may be linked to this article and no warranty is made by us concerning the suitability, accuracy or timeliness of the content of any site that may be linked to this article.

RosterElf disclaims all liability (except for any liability which by law cannot be excluded) for any error, inaccuracy, or omission from the information contained in this article and any loss or damage suffered by any person directly or indirectly through relying on this information.

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  • Personal problems can lead to reduced focus, increased absenteeism, and errors in work tasks. Employees distracted by personal issues may struggle to meet deadlines and contribute to team goals, ultimately lowering overall productivity.

  • Common issues include mental health challenges like anxiety and depression, family problems, financial stress, and health concerns. These problems can significantly impact an employee's ability to perform their job effectively.

  • Managers can look for signs such as changes in behaviour, reduced productivity, frequent absenteeism, or disengagement. Open and empathetic communication helps uncover underlying issues without being intrusive.

  • Empathy helps managers build trust and create a supportive environment. When employees feel understood, they are more likely to communicate their challenges, allowing managers to provide appropriate support without crossing boundaries.

  • Presenteeism occurs when employees are physically present but unable to perform at their best due to personal struggles. This can lead to lower quality work, missed deadlines, and a decline in team morale, impacting overall business efficiency.

  • Managers should focus on work-related accommodations, such as flexible hours or adjusted workloads, and encourage employees to seek professional support through employee assistance programs or counselling.

  • When personal problems go unaddressed, they can lower team morale, create tensions, and disrupt collaboration. The resulting decline in overall efficiency can affect business outcomes.

  • Addressing problems early prevents them from escalating, reducing long-term impacts on performance and morale. Proactive support also demonstrates the organisation’s commitment to employee well-being.

  • Addressing problems early prevents them from escalating, reducing long-term impacts on performance and morale. Proactive support also demonstrates the organisation’s commitment to employee well-being.

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