Abstract
This article examines the effects of job insecurity on employees’ financial well-being and work satisfaction. Based on a literature review on financial well-being, we proposed that financial well-being consists of two categories: personal financial well-being and family financial well-being. We developed a theoretical model that links job insecurity to employees’ personal and family financial well-being, and then to employees’ work satisfaction. Data were collected from 334 Chinese pink-collar workers in Macao. Results of the structural equation modeling showed that job insecurity negatively and significantly influenced employees’ personal financial well-being whereas employees’ personal financial well-being positively and significantly influenced work satisfaction directly and indirectly through employees’ family financial well-being. However, the direct relationships between job insecurity and employees’ family financial well-being and between job insecurity and work satisfaction were not significant.
Highlights
Many organizations require employees to do more with less because the market is hyper-competitive and the economic condition is unpredictable (Haynie et al, 2016)
A survey in the United States showed that respondents in average had a slightly low level of job insecurity and financial stress, and an appropriate financial wellbeing (FWB) in 2017 (Choi et al, 2020)
Nonresponse bias was evaluated by comparing the first wave and last wave of responses, that is, the first and last 100 responses
Summary
Many organizations require employees to do more with less because the market is hyper-competitive and the economic condition is unpredictable (Haynie et al, 2016). Employees face enormous pressure due to the tough working and living environment and the associations among job insecurity, financial wellbeing (FWB), financial stress, and people’s happiness cause great concern for individuals, families, organizations, and society (Choi et al, 2020; Cotton, 2017; Daly et al, 2019; Halvorsen, 2016; Lebert & Antal, 2016; Rajani et al, 2016; Weller, 2012). Weller (2012) reported that Australian households had very little cash reserves due to the escalation of household borrowing and expanding credit card debt When unexpected events such as job loss interrupted income flows, one out of four Australian households did not have enough money to cover their expenses even for 1 month
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