Impact of Employees’ Job Insecurity and Employee Turnover on Organisational Performance in Private and Public Sector Organisations

Abstract

Layoffs and alternative staffing seem to be a phenomenon in many workplaces, many employees seem uncertain of their continuing in their job as a result of threats that they face on the job which could lead to job loss, and these call for concern. This paper therefore examines some of the factors responsible for job insecurity and employee turnover and the attendant effects of job insecurity on organisation. The study investigates the relationship between job insecurity and organisation performance, as well as relationship between job insecurity and employee turnover. Self-developed structured questionnaire titled ‘Job Insecurity, Organisation Performance and Employee Turnover’ (JIOPET) was used as the instrument to collect data from one hundred and twenty randomly selected respondents from organised private sector (financial institutions) in Akure and public sector (state secretariat) in Ibadan, Nigeria. The data were analysed and the two hypotheses drawn up for the study were tested using Pearson Product- Moment Correlation. The findings establish that job insecurity negatively affect organisation performance and induce employee turnover. It is recommended that organisation policy makers should diligently address the factors that contribute to job insecurity, have training policy and train employees as work procedures are becoming more dynamic with new technologies.

Linking nurses’ job security to job satisfaction and turnover intention during reform and privatization: A cross‐sectional survey

“…Job security has been defined as employees’ perception that they can have their jobs as long as they want and that there are no subjective or objective factors that can make them susceptible to job loss (Abolade, 2018). Contradictorily, job insecurity is the perception of potential involuntarily job loss (Salas Vallina & Alegre Vidal, 2017).…”

“…Job security was positively associated with work engagement (Salas Vallina & Alegre Vidal, 2017). Job security was negatively associated with organisation performance (Abolade, 2018). Additionally, employees’ moral disengagement may be amplified by employees’ perception of job insecurity (Probst et al., 2020).…”

“…Turnover has been defined in the literature as the ‘number of employees leaving an organization either for personal reasons due to some dissatisfactions in the workplace or being laid off by the employer due to certain issues faced by the organization’ and found to be induced by job insecurity (Abolade, 2018). In the literature, there are several identified predictors of turnover intention, such as age, sex, profession, income, commitment, job security and organisational environment.…”

Impact of Selected Factors on Employees’ Satisfaction and Organisational Performance

“…Robbins et al (2008) explain that the organisation structure is how job tasks are formally divided, grouped and coordinated and that in designing the organisation structure, mangers must address work specialisation, departmentalisation, the chain of command, the span of control, centralisation and decentralisation and formalisation. Abolade (2018) concludes that the organisation's performance is an analysis of the company's performance as compared to the set goals and objectives; and that communication is the tool that gets people informed about their roles and responsibilities and allows them to be informed about the state of affairs in the organisation, so that the individuals will be able to work along with the management for the overall success of the organisation. Ion, Criveanu (2016) say that the performance consist in achieving the goals assigned to an individual in the convergence of the enterprise orientation; that the performance is not just finding the outcome but that it is the result of a comparison between the outcome and the objective.…”

Workers Job Security and Productivity in Missionary Educational Centres in Delta State, Nigeria

“…This situation could lead to challenge/threat to the workers in diverse employments who are not convinced of what might be their survival in this era of sacks and even premature retirement, could also affect performance of the organisation. It is generally believed that once an employee on the job passes the probationary period, the need for job security quickly appears to recede its importance (Abolade, 2018). As this is achieved, the individual becomes relaxed and complacent in a job situation.…”