POS and Psychological Empowerment as Moderating Variables on the Effect of Job Insecurity on Employee Performance in Islamic Banks

Abstract

Abstract. Employee performance in a company is an important component. The occurrence of the COVID-19 pandemic has caused employees to feel job insecurity due to the rise of layoffs in various sectors. This will indirectly affect the performance of employees in a company so that the performance of the company will decrease. For this reason, perceived organizational support and psychological empowerment are needed to reduce the negative effect of job insecurity on employee performance. This study aims to examine the effect of job insecurity on employee performance with perceived organizational support and psychological empowerment as moderating variables. This study uses descriptive quantitative research methods. Data were collected using a questionnaire via google form and distributed to employees who work at Bank Syariah Indonesia, Bank Muamalat, and Bank Madina Syariah. The questionnaire collected was 252 and analyzed using MRA (Moderate Regression Analysis) to test the hypothesis with the SPSS version 24 application. Research shows that there is a negative influence between job insecurity on employee performance, perceived organizational support could moderate the relationship between job insecurity and employee performance, and psychological empowerment is not able to moderate the effect of job insecurity on employee performance. Keywords: Employee performance; job insecurity; moderating role; perceived organizational support, psychological empowerment