How job security can affect productivity.
Employees are the backbones of any organisation, irrespective of its type. And in order to ensure your organisation is functioning to its best of capacity, the employee must be happy and satisfied. Organisational performance is suggested to be determined by the collective performance of the employee. A valuable method of achieving competitive edge for any organisation is to utilise the employees’ full potential. Thus, it is important for companies to consider and acknowledge motivational factors.
According to a survey by Human Resource Services Inc., the top motivational factor for employees is job security. This obviously means that the lack of job security can definitely affect productivity.
Job security is defined as the assurance in an employee’s job retention. It focuses on the possibility and probability of an employee keeping their job. Jobs which do not incorporate a contract lack job security.
Job security is an employee’s assurance or confidence that they will keep their current job for a longer period as they so wish. It is a guarantee from the company or the organization that their employees will remain a part of the organisation for a certain period of time without their terms being wrongly terminated.
A recent survey conducted by KPMG (2010) on job security found that more than 75% of participants considered job security their top priority when searching for a job as a result of the uncertain economic environment. Job security helps employees balance their personal and professional lives effectively thereby reducing anxiety and stress. This will obviously in turn positively affect their productivity. Organisations with no job security for employees cause them to lose trust in their future which affects their performance. Owing to these factors, it can be inferred that companies should find means of balancing between employee job security and the organizational performance because employee job security is a major determinant of organizational performance.