Job insecurity in COVID-19: A longitudinal study

Abstract

BACKGROUND: Due to the COVID-19 pandemic, many employees lost their jobs. At the same time, millions of individuals have been forced to relocate because of a “new normal, “ which requires them to work from home offices. Working from home poses difficulties for employees whose employers do not provide appropriate support to their home workplaces. Hence, it significantly affected employee performance and organizations. OBJECTIVE: This study utilizes stress theories to evaluate perceived job insecurity and perceived employability during COVID-19. The research examined perceived job insecurity and the resulting work stress, which led to adverse work outcomes. METHODS: The authors collected information from two multinational corporations and gathered longitudinal data in two waves. The authors used hierarchical regression for our data analysis. RESULTS: The findings indicated a substantial positive relationship between perceived job insecurity and work stress. Job insecurity in working environment has also increased, adversely affecting employee productivity. It follows from the moderated mediation analysis that perceived employability significantly impacts indirectly on work stress and outcomes. CONCLUSION: This study expands our knowledge and adds to the literature on workplace stress theories regarding COVID-19.