The Red Rose, on the brink of defeat by Surrey this week, have lost two and drawn five of their previous seven County Championship games.
Lancashire won three of their opening five Division One games this season, but last triumphed in May.
"We are looking behind us now," Giles told BBC Radio Lancashire.
"It would be nice if results went our way elsewhere around the country, but ultimately we can only do what we do and we need to play better cricket for the last three matches.
"We're getting a bit of a wake-up call here as there is a lot of cricket to be played and it is a very tight division.
"At the moment we're far from safe so we've got to play better cricket."
Lancashire sit fourth in the table after 12 County Championship matches, 17 points above second-from-bottom Hampshire in the relegation places.

The airport is in competition with Heathrow to win approval for an additional runway.
One of the guarantees is compensation for people living close to the airport.
Gatwick's chairman Sir Roy McNulty said: "These guarantees would mean Gatwick takes on the main risks of building the new runway."
The Airports Commission is currently considering three options for expanding airport provision in south-east England and is due to publish its findings in the summer.
These options are a third runway at Heathrow, lengthening an existing runway at Heathrow or a second runway at Gatwick.
Gatwick has "guaranteed" the project would be privately funded with no need for public subsidy, that airport charges would be capped and it would bear the main risks of the expansion plan.
It has also promised to compensate residents by Â£1,000 towards council tax bills if they are affected by significant level of aircraft noise, and said it would ensure that air quality targets always were always met.

The 25-year-old joined the Blues from Reading in August 2015 but has yet to make his debut for the Premier League champions.
He was loaned back to the Royals in 2015-16 before spending last season with German side Eintracht Frankfurt.
Hector has also had spells with five non-league sides, as well as spells in Republic of Ireland and Scotland.
The Jamaica international has played for Bracknell Town, Didcot Town, Havant and Waterlooville, Oxford City, Horsham, Dundalk, Barnet, Shrewsbury, Aldershot, Cheltenham, Aberdeen, Reading and Frankfurt.
He could make his Tigers debut against Aston Villa on Saturday, 6 August.
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Lancashire cricket director Ashley Giles is concerned their end-of-season form could see them dragged into a relegation fight.
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Bosses at Gatwick Airport have unveiled five "guarantees" they hope will convince the Airports Commission to approve a second runway.
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Chelsea defender Michael Hector has joined Hull City on a season-long loan, the 14th loan spell of his career.