Financial Insecurity During the COVID-19 Pandemic: Spillover Effects on Burnout–Disengagement Relationships and Performance of Employees Who Moonlight

Abstract

The novel Coronavirus disease (COVID-19) has magnified the issue of financial insecurity. However, its effect on individual-organizational relations and, consequently, on organizational performance remains understudied. Thus, the purpose of this study was to explore the spillover effect of financial insecurity on the burnout–disengagement relationship during the pandemic. The authors investigate in particular whether the spillover effect influences the performance of moonlighting employees and also explore the mediating effect of disengagement on the relationship between financial insecurity and burnout interaction effect and the performance (i.e., mediated-moderation). This study collected responses from 162 public and private sector employees who are engaged in moonlighting activities in Malaysia. The results from the partial least square structural equation modeling (PLS-SEM) revealed greater levels of financial insecurity and burnout associated with greater levels of work disengagement. The analysis of the interaction-moderation effect showed that when financial insecurity rises, the burnout effect on work disengagement increases among moonlighters. Using the PROCESS macro model, the results displayed burnout as a predictor of extra-role performance via a moderated (financial insecurity) mediation (work disengagement) relationship. Going forward, this study not only opens new avenues for research into the financial consequences of COVID-19 but also calls on managers to take proactive steps to mitigate the negative effect of the pandemic on the performance of moonlighting employees to keep them in the profession.

Job Insecurity and Job Performance: A Serial Mediated Relationship and the Buffering Effect of Organizational Justice

“…This insecurity enhanced the level of distress and concern among workers about their job and financial futures (Menéndez-Espina et al, 2019). Also, the damage caused by the pandemic in several employment sectors and the rising levels of unemployment (Blustein et al, 2020;McKibbin and Fernando, 2020) put additional pressure on employers and organizations in terms of being both competitive and responsible for preserving the health and performance of their employees (Wilson et al, 2020;Rasdi et al, 2021). Overall, such changing working conditions require a better understanding of how employees respond to such changes and the consequences for employees' psychological and physical health and job performance.…”

Burnout in COVID-19 era - a literature review

“…According to Southwick and Southwick (2020), social bonding is a basic need for every human being, the loss of which can result in an increased risk of burnout. A study by Rasdi RM and co-authors also found that financial uncertainty negatively affected their work engagement and productivity [8].…”

“…A sample item is "When you think about COVID-19 in general, how often do you feel hopeless?" [8] ils3. .…”

“…Interestingly, COVID-19 own illness or daily hours spent at work were not factors in differentiating groups of employees without burnout from those with burnout. It has been shown that the occurrence of professional burnout syndrome is in correlation with the presence of depressive symptoms [1,7,8]. Another tool used in burnout research was the PCL-C questionnaire, which assesses symptoms of post-traumatic stress disorder (PTSD) in the general population.…”

“…Combined with other accompanying emotions during this time including but not limited to elevated levels of anger, frustration, and other negative feelings, employees' ability to maintain a positive motivational-affective state is reduced. In light of these limitations, COVID-19 significantly exposed night shift workers to a greater risk of burnout, which is also associated with leaving their jobs [8].…”