Today, a rising number of employees worry about their job security. Many sectors, such as technology and retail, have already seen mass lay-offs over the last year, while others are subject to hiring freezes. Longer term the rise of AI threatens to disrupt and automate many roles, potentially replacing humans or requiring them to learn new skills to remain in the workforce.<\/p>\n
There\u2019s a proven link between job insecurity and lower engagement and poorer work performance. So how can companies and managers help increase job security for employees and ensure they get the best from their people?<\/p>\n
Having job security is all about being confident that you and your role are safe from being fired or laid off<\/span>. Essentially, it is about reassurance that you will be able to work at your current employer, now and in the future. Many people actively look for jobs with job security to balance work and home lives.<\/p>\n Job security is subtly different to job stability. Having job stability means that your role remains consistent and broadly unchanging.<\/strong> You go into the same office every day, interact with the same people, and do the same things, with the reassurance that you\u2019ll receive the same pay check<\/span> at the end of the month. You might well stay at the same company for the whole of your working life.<\/p>\n <\/p>\n What is clear today – and especially now in these uncertain times: Job stability has taken a back seat for many. Instead, most employees want job security. The younger generation is also increasingly striving for job security.<\/p>\n <\/p>\n How secure and comfortable someone feels in their job is related to multiple factors:<\/p>\n <\/p>\n Different generations see job security in different ways. Older generations, such as Baby Boomers and Generation X<\/a>, value security far more than their younger counterparts. For example, Gen Y<\/a> are known for changing jobs more frequently, preferring new experiences to stability within their working lives. For Generation Z<\/a> security is an important aspect when looking for a job. They come to the job market uncertain and worried, and in addition to freedom of development, they also want job security.<\/p>\n <\/p>\n There\u2019s a direct link between feeling secure in your job and giving your best. According to Gallup<\/a>, engagement drops by 37% amongst those who worry about their current and future job security.<\/p>\n At the moment, job security is dropping across the board \u2013 even though unemployment in the US remains low. Nearly half (49%) of employees interviewed for recent research were concerned about job security. It isn\u2019t just low earners who are feeling insecure – 66% of executives were worried about job security too.<\/p>\n <\/p>\n Many old-school managers believed that a certain level of job insecurity had a motivating effect on staff. Concerns about potentially losing their job made them work harder to try and impress their boss and retain their role. For example, General Electric used a 20-70-10 system, ranked by managers. The top 20% of employees were rewarded and the bottom 10% fired.<\/p>\n However, analysis shows that any correlation between insecurity and higher productivity are limited. Researchers at the University of Auckland and the University of Texas at San Antonio<\/a> found that job insecurity did have some positive impact on productivity, but that it also has a negative effect on creativity, innovation and helping others. As organizations<\/span> increasingly differentiate themselves through agility and innovation, using job security as a threat therefore becomes counter-productive.<\/p>\n <\/p>\n Rather than looking at job insecurity as a way of scaring employees into working harder, it is vital to focus on the benefits of good job security for both staff and organizations<\/span>.<\/p>\n <\/p>\n There are three main benefits of job security for employees:<\/p>\n <\/p>\n There\u2019s a direct connection between organizations<\/span> with high levels of job security and success:<\/p>\n <\/p>\n Particularly at times of turbulence, it can be difficult for managers to increase feelings of job security amongst their people. After all, they can be equally concerned that they will lose their jobs or be impacted by the rising cost of living and static wages. However, there are four areas they can focus on to reassure and motivate their reports who are looking for job security:<\/p>\n Transformational leaders<\/a> motivate their people and show empathy for their concerns. They are transparent and share information, communicating change and balancing pragmatism and optimism. All of this means that fears around job security are put to the back of employee minds as they look forward to coming to work and see the positive opportunities that change brings. They are happy to confide their worries to their manager, without feeling it will negatively impact their career.<\/p>\n Concerns around job security require managers to reassure staff and simply answer their questions. That makes listening a key skill \u2013 whether face-to-face in meetings\/one-to-ones, or by collecting feedback via surveys. Understanding what is worrying staff, and then providing answers and corrective actions reduces concerns and builds a stronger, more secure workplace.<\/p>\n Many employees are concerned that they don\u2019t have the right skills to succeed in the changing world of work. This impacts their self-esteem and leads to a lack of security around their job. Managers therefore need to encourage staff to embrace relevant learning and development opportunities, whether it is learning new skills that directly help them in their current job or wider training that helps them progress and take on new roles<\/p>\n Particularly amongst younger generations, employees want their mental as well as physical health to be supported. A lack of job security will directly impact wellbeing and can quickly lead to poor health, lower engagement, higher rates of absence, and greater employee turnover. By putting in place a full range of wellbeing resources<\/a> organizations<\/span> support staff and show that they care about them as individuals. These initiatives should be led from the top, with senior managers taking part in sessions to remove any stigma around wellbeing and demonstrating that it doesn\u2019t impact their career.<\/p>\n In today\u2019s experience economy, it is vital that organizations understand \u2013 and meet \u2013 the needs of their employees, including around job security. Understanding starts with listening, collecting feedback across the employee lifecycle and then acting on the insights that surveys deliver.<\/p>\nJob security vs job stability<\/h3>\n
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What impacts job security?<\/h3>\n
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Why job security matters<\/h2>\n
Let\u2019s face it: Does job insecurity increase performance?<\/h3>\n
The benefits of job security<\/h3>\n
The benefits of job security for individuals<\/h4>\n
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The benefits of job security for organizations<\/span><\/h4>\n
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How can managers increase employee job security?<\/h2>\n
1. Be an open, transformational leader<\/h3>\n
2. Listen and act on feedback<\/h3>\n
3. Encourage learning and development<\/h3>\n
4. Focus on wellbeing<\/h3>\n
How Tivian helps to provide job securuity<\/h2>\n
Listen to employees and address concerns early on<\/h3>\n