Crafting a pathway for underemployed workers who feel ‘stuck’

Underemployed workers whose skills are often not being effectively used quickly become disengaged, affecting long-term business outcomes for organisations.

HR Leader recently spoke to Leah Mano, founder of job listing platform TYFU, about the curious case of underemployed workers. Mano expressed how these workers often feel stuck in their roles with no hope of career growth or advancement. This feeling often plagues their performance in their current role.

“Underemployed workers often feel stuck in their current roles for several reasons, even if they’re actively searching for better opportunities,” Mano said.

“One of the biggest issues is the limited availability of jobs that match their skills and experience, especially in a competitive market where there are fewer full-time or high-paying positions. This makes it hard for them to find roles that offer the stability or advancement they’re looking for.

“Also, with many companies downsizing or laying off employees, there’s a sense of job insecurity. Workers might hesitate to leave their current roles out of fear that the next opportunity could be unstable, making them feel trapped despite wanting better options.”

There are also external pressures that can feed into this, which Mano explained.

“Financial pressures play a big role as well. Many workers can’t afford to take time off for additional training or education, or to risk switching to a new field, especially if their current job is their main source of income,” she said.

Employers can play a huge role in overturning this stagnant position that a number of Australian employees find themselves in. Mano provided some key strategies that employers could consider deploying to ensure their employees don’t experience this:

• “Provide skill development opportunities that help workers acquire new skills that make them eligible for higher-level positions.
• “Promote internal hiring whenever possible. Give underemployed workers the chance to apply for roles first as they become available.
• “Provide mentoring programs where senior staff act as mentors and provide guidance on how to navigate careers and identify growth opportunities.
• “Offer where underemployed workers get exposure to different departments or projects wherever possible. This can broaden their skill set, open up new career avenues, and provide them with more networking opportunities within the company,” Mano said.

If employers fail to step up and address this issue when it pertains to their employees, then they could face a wide range of consequences pertaining to the mental health and wellbeing of their staff.

“Prolonged underemployment can take a serious toll on mental health, leading to stress, frustration, and feelings of inadequacy. This can reduce motivation, making workers feel stuck or hopeless about their career growth,” Mano said.

“Over time, it can also hurt long-term career prospects, as gaps in full-time experience or advancement opportunities make it harder to transition into higher-level roles. In short, underemployment can lead to burnout and a stalled career.”