Understanding the Relationship Between Job Insecurity and Performance: Hindrance or Challenge Effect?

Abstract

This study aims to propose a theoretical model that explains the psychological processes underlying the job insecurity-performance relationship. To accomplish this goal, we draw on a twodimensional stressor framework. Job insecurity may undermine performance through a hindrance effect, because it causes strain reactions and withdrawal behaviours. In contrast, it can trigger productive behaviours as a form of job preservation strategy, when reacting actively. These competing predictions are integrated in the same structural equation modeling by testing the negative indirect effect of job insecurity on task and contextual performance, mediated by job satisfaction and affective commitment. The positive challenge effect is examined by testing the remaining direct path to performance. To provide convergence of evidence, two studies were conducted with the purpose to replicate patters and findings across different measures and samples.The results provide support only for negative and passive reactions to job insecurity, leading to lower performance.

A Meta-Analysis of Job Insecurity and Employee Performance: Testing Temporal Aspects, Rating Source, Welfare Regime, and Union Density as Moderators

“…The results are consistent with much of the research on job insecurity and how it relates to various performance outcomes, including two meta-analyses on job insecurity that included job performance [4,9]. The finding that job insecurity appears to be detrimental for employee performance is also contrary to those studies suggesting that experiences of job insecurity will make employees work harder [16,17]. The fact that we did not find any relationship between job insecurity and creativity could be attributed to several different factors, for example, that while job insecurity is associated with other types of performance [69,74], it is not related to creative and innovative performance.…”

“…More specifically, our results replicate previous meta-analyses that have found that job insecurity is detrimental for employee performance [4,9], and also extend existing research by investigating a wider range of performance outcomes (task performance, contextual performance, counterproductive work behavior, creativity, and safety performance). The findings that job insecurity was associated with lower levels of task, contextual, and safety performance and higher levels of counterproductive behavior (but not with creativity on a general level) diverge from those of certain other studies which suggest that job insecurity will lead to employees working harder [16,17]. Rather, our results are in line with theories suggesting that job insecurity is associated with impaired performance due to it being a stressor [15] and that it constitutes a breach of the psychological contract [42] or a threat to one’s identity [40].…”

“…Mirroring this duality, the link between job insecurity and employee performance has generally been theorized in two contrasting ways in previous studies. Whereas the bulk of theoretical approaches suggests that job insecurity, like any stressor, would result in negative consequences, such as impaired performance through employee withdrawal [14,15], others maintain that job insecurity may challenge employees to demonstrate their value to the organization by performing better and engaging less in counterproductive work behaviors [16,17]. This inconsistency could be due to the way in which employee performance was operationalized in these previous meta-analyses.…”

“…Additionally, social identity theory suggests a negative relationship between job insecurity and performance, as the experiencing of potential job loss erodes work-related identity [40]. However, those experiencing job insecurity may also attempt to counteract the threat to their job by working hard to show that they are worthy of keeping their employment, resulting in higher task performance and more organizational citizenship behaviors [16,17,61].…”

Job Insecurity and Safety Behaviour: The Mediating Role of Insomnia and Work Engagement

“…Individuals in stressful work situations often suffer from health problems such as insomnia [ 13 ]. Most scholars identify job insecurity as an obstructive stressor [ 34 ]. By definition, job insecurity refers to an employee’s fear and worry about becoming unemployed.…”