3. What is Job Security?
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Job Security:
• Assurance an employee has about the continuity of gainful
employment for their work life.
Job Insecurity:
• An employee’s overall concern or threat about the continued existence
of their job in the future.
• An Employee’s PERCEPTION of threat of job loss including:
• Cognitive – perceived probability
• Emotional – worry and stress about job loss.
The discrepancy between the level of security a person experiences and
the level they would prefer.
4. Causes of Insecurity
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Market Forces:
• Deindustrialization
• Technological innovation
• Computers
• Internet
• Robotics & autonomous machines
• Globalization
• Free market economics
• Privatization of public services
• Economic climate
Organisational/Industry Forces:
◦ Downsizing, mergers etc.
◦ ‘Casualization’ of workforce
◦ Workload creep
◦ Organisational culture/leadership
◦ Work group perceptions
◦ Labour market conditions
6. Job Security & Health
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Insecurity is affecting more people in the Australian workforce
Insecurity causes economic and social stressors:
◦ Income loss & Economic Stress
◦ Loss of identity/status
◦ Loss of purpose
◦ Social Isolation
Is a risk factor for mental and physical health problems
Can be a contributor to poor health outcomes with other lifestyle factors:
◦ Diet
◦ Exercise
◦ Stress
◦ Smoking/Drinking
7. Mental Health
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Job insecurity is consistently linked with negative mental health
◦ SF-36 Mental Summary & Kessler 10 scores.
A dose – response relationship may exist.
Perceived insecurity acts as a chronic stressor
Risk factor for depression & anxiety in particular
Access EAP recently identified job insecurity as the primary trigger for stress in
the Australian mining industry.
Those in ‘precarious’ employment are at greater risk
8. Physical Health
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• Less consensus within the literature, less research than mental health
• Correlation is greater with subjective measures
• Associated with work role limitations (physical/emotional issues)
• Extended periods of insecurity increased physical symptoms
• Associated with increases in medically certified sick leave (30% short term, 20%
short)
• Objective measures (Allostatic load, BP, cortisol etc.) have mixed results.
• One study found that job insecurity had an negative effect on self reported
health, but not objective measures (Allostatic load/cortisol)
9. Health & Productivity
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• Health impacts both absenteeism and presenteeism
• Presenteeism = health related productivity loss caused by employees coming to work whilst ill
or injured.
• Presenteeism may result in a greater proportion of productivity loss
• Adverse working conditions have health and productivity decrements
• D&A and Psychological issues = highest absenteeism risk
• Psychological, D&A and fatigue issues = highest presenteeism risk
• Comorbidity can increase functional impairment
10. Insecurity and Productivity
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Job Insecurity is associated with poor employee attitude, i.e. reduced:
◦ Job satisfaction
◦ Organisational commitment
◦ Work involvement
◦ Organisational trust
• Individual perception of insecurity is influenced by social context and “climate”
• Leadership influences strength of the insecurity climate
• Employees with similar demographics have similar perceptions.
• Greater climate strength is associated with poorer individual employee attitudes
• Low climate strength can also be a stressor
11. Impacts on Safety
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Globally 260M occupational injuries annually, that’s 700K/day!
Employees with increased insecurity demonstrate:
◦ Decreased safety knowledge
◦ Decreased motivation to comply with safety policies/procedures
◦ Increased accidents/injuries
◦ Increased safety policy violations
Work Stress = Increased cognitive failures
Insecurity may result in:
◦ Decreased cognitive resources to devote to the job & safety
◦ Short cuts to improve productivity, under reporting of incidents
Research found insecurity increased
◦ Likelihood of experiencing and accident
◦ Likelihood accident would not be reported.
12. Experience of “Survivors”
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Organisational restructuring results in “Survivors”
Effects of job insecurity remain, particularly in weak labour markets
Workload may increase, resources and knowledge lost
Survivors experience increased stress which can persist long after the downsizing has taken
place
High work stress and low perceived control have detrimental effects.
Greater downsizing results in higher levels of survivor stress
◦ Also higher levels of hypertension
Salaried workers experienced greater stress than ‘hourly’ workers
“Survivor Syndrome” is a recognized issue
13. Managing and Coping with Insecurity:
Helping Others
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Listen, help them understand the source of insecurity/stress
General Advice:
•Accept the situation (focus on what you CAN control)
•Look after health and wellbeing (diet, exercise, relaxation etc.)
•Be proactive (instead of worrying, plan - helps gain control)
•Check in with your personality (predisposition to anxiety etc.?)
•Seek identity and enjoyment beyond work
•Write out/talk out worries
•Seek help (refer to services and resources)
14. Managing and Coping with Redundancy:
Helping Others
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Redundancy is often experienced as a grief/loss cycle
◦ Shock/Disbelief
◦ Depression/Anger/Fear
◦ Acceptance & Moving On
Listen, understand where they are, help them understand their experience
Help them to identify negative/counterproductive thinking
They may not be ready to problem solve, offer to help when they are
When ready, help with brainstorming and goal setting, seeing opportunities and
problem solving, share resources and knowledge.
Refer to other services if they are not coping or at risk of harm (EAP, Lifeline, GP
etc.).
Taking Care of Yourself after Retrenchment or Financial Loss
15. Managing and Coping with Insecurity:
Helping Yourself
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Take your own advice!
• Check in with yourself, your feelings and experiences
• Helping others can affect you, be aware of your own experience and capacity
before jumping in.
• Don’t take on too much or try to fix everything
• You don’t have to help if you don’t want to or can’t, refer to
someone/resources that can.
• You may be helping others, but who is helping you? Tap into support networks
• Seek help for yourself i.e. EAP
16. References
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Rhode, N., Tang, K., Osberg, L. & Prasada Rao, D. (2014). The effect of economic insecurity on
mental health: recent evidence from Australian panel data. Griffith Business School Discussion
Papers. Griffith University.
Holden, L. et al. (2011). Which health conditions impact on productivity in working Australians?.
Journal of Occupational and Environmental Medicine, 53 (3), 253 – 257.
Modrek, S. & Cullen, M. (2013). Job insecurity during recessions: effects on survivors work
stress. BMC Public Health. 13 (929).
Sora, B., Cuyper, N., Caballer, A., Peiro, J. & Witte, H. (2013). Outcomes of job insecurity climate:
the role of climate strength. Applied Psychology. 62 (3), 382 – 405.
Milner, A., Kavanagh, A., Krnjacki, L., Bentley, R. & LaMontagne, A. (2014). Area-level
unemployment and perceived job insecurity: evidence from a longitudinal survey conducted in
the Australian working-age population. The Annals of Occupational Hygiene. 58 (2), 171 – 181.
17. References
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Naswall, K., Lindfors, P. & Sverke, M. (2012). Job insecurity as a predictor of physiological
indicators of health in healthy working women: an extension of previous research. Stress and
Health. 23, 255 – 263.
Ferrie, J. (2001). Is job insecurity harmful to health? Journal of the Royal Society of Medicine. 94,
71 – 76.
Probst, T., Barbaranelli, C. & Petitta, L. (2013). The relationship between job insecurity and
accident under – reporting: a test in two countries. Work & Stress. 27 (4), 383 – 402.
Rhode, N., Tang, K., Osberg, L. & Prasada Rao, D. (2014). The effect of economic insecurity on
mental health: recent evidence from Australian panel data. Griffith Business School Discussion
Papers. Griffith University.
