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Job insecurity: the new normal?

Date

Work in Progress

James Adonis is one of Australia's best-known people-management thinkers

View more entries from Work in Progress

We live in a world where layoffs appear to be more frequent. Let's talk about it.

Redundancies are a new constant reality for some workers.

Redundancies are a new constant reality for some workers.

Losing your job is one thing; fearing you might lose it is another.

The prolonged uncertainty, the constant unknowing, the craving for predictability. And yet if those were all that characterised insecure work environments, perhaps they'd be tolerable. The reality, however, is that more often than not, a number of emotional and physical consequences ensue.

In recent decades, dozens of studies have demonstrated the consequences can include anxiety, stress, insomnia, stomach problems, skin irritations and mental illness. All of which can be attributed to the threat of financial hardship, diminished social networks and a bruised self-esteem.

"If insecurity is inevitable, then the best we can do is to adapt to it."

"If insecurity is inevitable, then the best we can do is to adapt to it." Photo: Gabriele Charotte

Complicating the situation further is that job insecurity can be subjective. There are times when employees fear their jobs might be lost for legitimate reasons (such as the imminent bankruptcy of their organisation) while at other times their fears are unfounded (such as a recruitment freeze during which their employers have no intention of retrenching staff).

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Irrespective of the fear's legitimacy, the psychological consequences are usually the same as are the physical manifestations.

According to research published earlier this year in the Journal of Safety Research, a villain and a hero have emerged. The villain is the employee's supervisor. In the study of employees working at an American copper mine, those who felt their jobs were insecure were more likely to feel dissatisfied with their boss even if that individual wasn't the culprit.

And who might the hero be? Well, contradictorily, again it's the employee's supervisor. The researchers found the stronger the relationship between employees and the boss, the less frequently those employees complained about the health-related consequences of their potential job loss.

Those findings are important because "most jobs in today's global economy are not in fact secure". We live in a world where layoffs appear to be more frequent, which means for many workers their long-term employment is anything but certain. It's not practical to try to reverse that insecurity and it may indeed be something we must learn to tolerate. Which is easier said than done.

So even though supervisors can't make the insecure secure, what they can do is mitigate some of the harsh effects of working in such a climate. And nowhere is that more evident than in the relationships they build with their employees. The researchers suggest they can cultivate these relationships by being respectful, ethical, communicative and informative.

Which sounds like it's stating the obvious but you'd be amazed how quickly those responsibilities are neglected. Especially when a supervisor's employment is as unsecure as employees'.

Making the experience somewhat more difficult is the presence of another job insecurity villain: the team. 

When an employee's colleagues are venting about their uncertain employment prospects, at the same time as rumours become increasingly common, it's almost impossible for emotional contagion to be avoided. Before they realise it, positive-minded team members get sucked into the despair and pessimism.

That was certainly the case in a study published in March by Swedish and Kiwi researchers. Employees were more likely to report poorer health and higher burnout if they worked in an environment where they perceived their co-workers to be plagued by feelings of insecurity.

And the contagion spreads further. In her book released last year, The Tumbleweed Society, sociology professor Allison Pugh drew upon 80 extensive interviews to demonstrate that employees who feel insecure at work often end up feeling insecure at home.

"If insecurity is inevitable, then the best we can do is to adapt to it. Yet why would those adaptations end at the workplace door? For people who bear witness to the end of employer commitment … their adaptations at work [seep] into their intimate lives like muddy floodwater across a threshold."

Do you agree? Is job insecurity the new normal? How does it affect you?

James Adonis is the author of 'Employee Enragement'.

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6 comments so far

  • The internet provides a wonderful opportunity for people to become self-employed. Time to get on board and say good-bye to dodgy employers!

    Commenter
    BB
    Date and time
    June 24, 2016, 3:42AM
    • Times are very strange, perhaps a new reality that digitization has brought to the work force as Corporates begin to invest in AI or robots to replace jobs that be easily automated.

      With near zero interest rates, prospect of further company tax rates and yet we barely see an uptick in full-time employment numbers.

      It is an ideal solution for employers, as annual, sick leave, and super contributions are eliminated from operating a business model.

      I know of many people have been made redundant many times and the only option for them is to enter the Gig economy - find short term work where you can and when you can.

      Full time work what's that they say ? - a pipe dream of yesteryear.

      Welcome to the Gig Economy, at least you can't be fired or fear losing a job, as it is up to your social skills to mostly secure the next contract or project.

      Commenter
      it's the gig economy
      Date and time
      June 24, 2016, 12:20PM
      • The brilliant government strategy of "efficiency dividends" means that every last person in the public service is permanently stressed as their departments inexorably shrink and the redundancies keep rolling on.

        If you want to address Australia's growing mental health issues, then getting rid of a blunt, lazy, slow-torture policy like "efficiency dividends" would be a great start.

        Commenter
        Apollo Era
        Location
        Sydney
        Date and time
        June 24, 2016, 3:02PM
        • It is not the government only that sheds jobs. Efficiency dividends is a necessity when a government organization does not provide the service or the output expected. They are funded with public money, so we need to keep them accountable. With the private sector, they operate without my money, so I do not have to dictate them what I think

          Commenter
          John Lucas
          Location
          West Pennant Hills
          Date and time
          June 25, 2016, 8:36AM
      • Why do the decision makers suffer no consequence of dismissal for delivering failed vision, over and over? And they continue to sacrifice the serfs to save themselves? Until they get a golden parachute so large, their heirs will derive a privileged lifestyle? Where does the board of multinationals, stand on this? To pay for leadership failure but display contempt for the sacrificial lambs demanded to execute the flawed vision?

        Commenter
        rolo
        Date and time
        June 25, 2016, 7:43AM
        • As a casualised teacher in the university sector, the insecurity of my life and that of my colleagues, brings with it many problems, not least being health. Living in short term increments with no long term employment commitments can be enormously stressful. A range of health issues such as depression, anxiety, muscular-skeletal disorders and alcoholism have become increasingly common. As teachers,we give our best but we are not supported by management who think of nothing but the dollar.
          In terms of continuity and development of quality education, it's a disaster. In terms of collegial relations, it is extremely destructive. How can you support and share material with each other when everyone is perceived as a rival? It was graduation day yesterday. I shook the hands of my students in congratulations. It took a great effort from us all... and I wondered if I would have work in the following months.

          Commenter
          wageslave
          Location
          Sydney
          Date and time
          June 25, 2016, 9:32AM

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