Employment Security as Moderator on the Effect of Job Security on Worker’s Job Satisfaction and Well Being

Fatimah O,Noraishah D,Khairuddin R,Nasir R

doi:10.5539/ass.v8n9p50

Abstract

Economic instability around the world has resulted in many organizations having to lay off workers and also shut down to save their business. This economic strain and stress have impact on the worker’s job satisfaction and well being through job insecurity. Thus, the purpose of this study is to examine the moderating effects of employment security on job security and job satisfaction and well being among workers in the banking sectors and manufacturing sectors who were most affected by the economic downturn. Participants were 600 workers of which 200 represented the workers who work in the bank, 200 in electronic industry and 200 in textile industry. They were randomly selected to participate in the research. A set of questionnaire comprising of Employment Security Scale, Job Security Scale, Job Satisfaction Scale and Well-Being Scale were used to measure the variables. Results from the multiple regression analysis showed that employment security did not moderate the relationship between job security and job satisfaction and well being of workers. However, job security had a direct relationship with job satisfaction and well being of workers. Thus, result from this study implicated that it was not the employment security that worried the workers but the security of their job that they were holding that impacted on their job satisfaction and well-being.

Highlights

The economic downturn and instability around the world caused economic strained globally
Results of the R2 obtained showed that 22.6% of job satisfaction can be explained by both the employment security and job security which were significantly shown by the F test, F (2,597) = 87.23, p < 0.05
In conclusion results of this study showed that employment security did not affect or moderated the relationship between job security and job satisfaction

Summary

Introduction

The economic downturn and instability around the world caused economic strained globally. As a result of this economic strain, many organizations have laid off their workers and some have shut down as ways to save their business or organizations (Friedrich, 1997) This economic strain and stress will impact on the workers and their family (Kinnunen and Pulkinen, 1998) and contribute to uncertainty about job security (Fullerton and Wallace, 2007). Job insecurity will contribute to the psychological stress experienced by the workers which includes depression, sadness, relationship problems, becoming alcoholic, drug abuse and low physical health (Jahoda, 1982) which will affect their well-being. In this context the instability in the economy have effect on the health and well-being of the society (Anom, 2009)

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