Welfare led 2-1 at one point thanks to a brace from in-form Liam Radford but a second half collapse saw them slip to only a second defeat in seven games.
The Church Street side are battling for their NCEL Premier Division lives, and currently sit just one place and three points above the relegation zone.
“Last Saturday’s home defeat against Liversedge was a big wake up call to all the players,” said Carmody, who was appointed in September.
“Yes we’re a good side. Yes we’ve been on a good run of results but if we don’t apply ourselves right in everything we do then we will be punished for that.
“If we don’t do the things that have been working for us, and earn the right to play, teams in this league will take their opportunities.
“I’m the first one to praise my players when we’ve given everything but Saturday’s result and performance was disappointing, something we’ll be doing our best to rectify very quickly.
“Standards have been set over recent weeks and every one of my players know what is expected of them. We won’t press the panic button over one bad performance.
“As I said recent results and performances have been excellent up until Saturday and the boys are just as disappointed with the performance.
“They were all back on the training pitch on Tuesday working hard to put our mistakes right.
“I’ve got a very honest bunch and we’ll keep fighting all the way starting on Saturday away at Harrogate Railway.”