Employee Wellbeing or Performance Pressure ? Rethinking HR Priorities in Sri Lankan Organizations


Due to organizations quest for productivity and competitiveness, many have pursued the need for implementation and performance outcomes over employee wellbeing. In Sri Lanka, this facet has become more intense due to the economic instability, where firms necessitate higher productivity with limited resources. In Sri Lanka, this subject is often oversighted, as studies prove that nearly 12% of the populace is affected by mental health concerns, while over 50% of employees regardless of their age account for experiencing workplace stress at some point in their careers (Siromani, 2022). This raises a pivotal concern within the working environment. Are firms achieving sustainable performance, or are they undermining long term productivity by neglecting employee wellbeing?

The Job Demands Resources Model which emphasizes on workplace characteristics provides a useful framework to further understand this dynamic. This model suggests that excessive job demands such as raised targets, intense workloads and emotional and mental strain could lead to burnout whilst job resources such as autonomy, feedback and development prospects significantly enhance performance and employee engagement (Bakker, Demerouti and Sanz-Vergel, 2023).

 

                     

 Figure 1: Job Demands–Resources Mode

Source:  (Bakker and Demerouti, 2007)

 

As illustrated in Figure 1, a disparity between job demands and available resources results in employee exhaustion and disengagement. In a plethora of firms, especially in high pressure segments, obligations often outweigh the availability of resources, enhancing the risk of employee disengagement and exhaustion.

Maslow’s Hierarchy of Needs proposes that individuals must feel content and satisfy their fundamental physiological and psychological needs before reaching increased levels of motivation and performance (Channell, 2025). Conversely, the workforce which faces financial pressure, insecurity, and excessive workloads are very much unlikely to attain best possible productivity, regardless of performance expectations from organizations.

This disparity is particularly visible in the banking and apparel industry in Sri Lanka. Revered firms such as Commercial Bank of Ceylon operate in highly competitive market where it is mandatory for the workforce to meet aggressive targets simultaneously adapting to digital transformation also known as the new normal. Likewise, organizations such as MAS Holdings undergo immense global pressures that necessitate competence and tight production timelines. Additionally, organizational culture in Sri Lanka is often distinguished by prolonged work hours, firm hierarchies, and limited work-life balance. These factors further escalate job demands while no emphasis is shown towards resources, reinforcing the imbalance highlighted in the JD-R model. While these firms have initiated employee engagement initiatives and programs, the overall systems reflect an inclination to encourage and prioritize productivity over holistic wellbeing of employees (Iddagoda & Opatha, 2020).

 

                                  

Figure 2: Relationship Between Stress and Performance

Source: (Pietrangelo, 2020)

 

Figure 2 further demonstrates the relationship between stress and performance, where moderate levels of stress enhance productivity, while excessive pressure leads to performance decline (Pietrangelo, 2020). Various Studies consistently demonstrates that persistent exposure to intense work pressure on employees without sufficient resources leads to reduced career satisfaction, disengagement, and increased employee turnover (Bakker and Demerouti, 2007). Limited organizational focus on mental health exacerbates these outcomes, making employees more vulnerable to stress-related challenges.

Leadership should negate assessing employee wellbeing as a secondary concern and instead build a core business strategy which includes all aspects of employee wellness. This includes stimulating supportive leadership frameworks, balancing demands and resources through work optimization and fostering a culture that focusses on employee health whilst also aligning them with organizational performance.

 

Conclusion

The tension between employee wellbeing and performance is often misunderstood as a tradeoff rather than a strategic balance. The rising job demands without adequate support undermines long-term organizational effectiveness. The Job Demands Resources model clearly highlights that excessive pressure leads to disengagement and burnout, simultaneously Maslow’s hierarchy theory suggests that intrinsic motivation is achieved by high levels of self actualization. Leadership and organizations that disregard these aspects may enjoy short term improvements but will undergo excessive productivity losses and higher turnover. Therefore, incorporating employee wellbeing initiatives into core HR strategies is vital for building a resilient and adaptable workforce. Organizations could achieve long term viability by building support systems for employees, not by maximizing pressure.

 

 

 

 

 

 

 

 

 

Bakker, A.B. and Demerouti, E. (2007) ‘The Job Demands–Resources model: State of the art’, Journal of Managerial Psychology, 22(3), pp. 309–328.

Bakker, A.B., Demerouti, E. and Sanz-Vergel, A. (2023) ‘Job Demands–Resources Theory: Ten Years Later’, Annual Review of Organizational Psychology and Organizational Behavior, 10, pp. 25–53.

Channell, M. (2025) Maslow’s hierarchy of needs: How leaders motivate their teams. TSW Training. Available at: https://www.tsw.co.uk/insights/maslows-hierarchy/ (Accessed: 9 April 2026).

Iddagoda, Y.A. and Opatha, H.H.D.N.P. (2020) ‘Relationships and mediating effects of employee engagement: An empirical study of managerial employees of Sri Lankan listed companies’, SAGE Open, 10(2), pp. 1–15. doi: 10.1177/2158244020915905

Pietrangelo, A. (2020) Yerkes-Dodson law: How it correlates to stress, anxiety, performance. Healthline. Available at: https://www.healthline.com/health/yerkes-dodson-law#how-the-law-works (Accessed: 9 April 2026).

Siromani, J. (2022) Prioritizing mental health in Sri Lankan workplaces: Addressing stigma, enhancing well-being, and boosting productivity. Great Place to Work® Sri Lanka. Available at:https://greatplacetowork.lk/prioritizing-mental-health-in-sri-lankan-workplaces/ (Accessed: 10 April 2026).

 

 

Comments

  1. Ashan WimalasurendraApril 15, 2026 at 12:41 PM

    This was a really interesting read. I liked how you explored the tension between wellbeing and performance. it made me wonder, do you think organisations sometimes treat them as opposites when they’re actually connected?

    ReplyDelete
    Replies
    1. Shewan SundarampillaiApril 20, 2026 at 8:56 AM

      That’s a really insightful perspective. I agree on the fact that organizations often frame wellbeing and performance as if they are in tension, when in reality they’re deeply connected. You are right to raise that question. Too often, wellbeing is seen as separate from performance, but in practice, they reinforce each other. When employees feel supported and valued, their energy and engagement rise, which directly improves performance. Treating them as opposites risks missing the bigger picture that sustainable performance depends on wellbeing.

      Delete
  2. Madavi HemachandraApril 21, 2026 at 6:59 AM

    This blog highlights an important issue in Sri Lankan organizations, how performance pressure often overshadows employee well being. It clearly shows that focusing only on short term productivity can actually harm long term results. The discussion around the Job Demands, Resources model. Overall, it’s a strong reminder that organizations must create a balance between performance and wellbeing to build a sustainable and motivated workforce.

    ReplyDelete
    Replies
    1. Shewan SundarampillaiApril 21, 2026 at 7:27 AM

      I certainly agree with your perspective, when performance pressure overshadows employee wellbeing, organizations risk undermining their own long term success. The Job Demands Resources model is a useful reminder that sustainable productivity comes from balancing demands with adequate resources like support, recognition, and flexibility. In the Sri Lankan context especially, where high targets often dominate, creating this balance is essential for building a motivated and resilient workforce

      Delete
  3. NadeekaApril 21, 2026 at 7:13 AM

    This is a well-argued blog that clearly shows the imbalance between performance pressure and employee wellbeing. Your use of the Job Demands–Resources Model effectively explains how excessive demands without adequate support lead to burnout rather than sustainable productivity.
    The integration of Maslow's Hierarchy of Needs also strengthens your point that employees cannot achieve high performance when basic psychological and safety needs are unmet.

    However, it raises a critical issue: many Sri Lankan organizations recognize these theories, yet still prioritize short-term output over long-term wellbeing. This suggests the real gap is not awareness, but execution and leadership mindset.
    Overall, the key takeaway is clear—organizations must treat employee wellbeing as a strategic driver of performance, not a secondary concern, to achieve sustainable results.

    ReplyDelete
    Replies
    1. Shewan SundarampillaiApril 21, 2026 at 7:25 AM

      A great point. One practical way organizations can upskill quickly without hurting productivity is through microlearning approaches such as short, focused modules that fit into daily routines. Combining this with on the job coaching and digital platforms for flexible, self paced learning helps employees build new skills while staying engaged in their regular work.

      Delete
  4. Janith WijekoonApril 21, 2026 at 8:59 AM

    This is a timely and thought-provoking post, especially in the Sri Lankan context where organizations are navigating economic uncertainty alongside rising employee expectations. The tension you highlight between wellbeing and performance pressure isn’t really a choice—it’s a balancing act. When organizations lean too heavily on performance metrics without supporting employee wellbeing, it often leads to burnout, disengagement, and ultimately lower productivity.

    ReplyDelete
    Replies
    1. Shewan SundarampillaiApril 21, 2026 at 9:34 AM

      I agree with the fact that the tension between wellbeing and performance pressure is not an either choice but a balance that organizations must actively manage. When leaders prioritize only metrics, they risk undermining the very productivity they aim to achieve. Practical approaches like integrating wellbeing into performance systems, encouraging realistic targets, and fostering supportive leadership can help organizations in Sri Lanka sustain both employee health and long term competitiveness. Over time, this balance builds resilience and trust, which are far more valuable than short term gains.

      Delete
  5. Devaraj SanjeevApril 22, 2026 at 8:27 PM

    This is a very relevant and well-balanced discussion on the relationship between employee well-being and performance. I particularly like how you highlighted the tension between achieving high targets and maintaining employee health. Research also shows that while performance-driven practices can improve results, they are only sustainable when employee well-being is supported alongside them . How can organisations design performance systems that drive results without creating long-term stress and burnout among employees?

    ReplyDelete

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