The Negative Effect of Job Insecurity in the Virtuous Cycle Between Trust in the Organization, Subjective Well-Being, and Task Performance in the Current Volatility, Uncertainty, Complexity, and Ambiguity Context.

Abstract

Over the past decade, job insecurity referring to the employees’ perceived threat to the continuity and stability of employment as it is currently experienced has become a hot topic. A general assumption, supported by the findings, is that job insecurity causes far-reaching negative consequences for the employee health and well-being, attitudes toward organization and the job, and behaviors at work. However, the focus on behavioral outcomes, especially on employee performance at work, is still scant. Moreover, the literature remains fragmented concerning the impact of job insecurity on employee trust in the organization and how the trust influences employee subjective well-being (SWB), which in turn affects employee performance. Consequently, the link between job insecurity and SWB needs more investigation. Trying to narrow the gap, the paper aims at revealing the linkage between job insecurity, trust in the organization, SWB, and task performance. Quantitative data were collected in Lithuania. As predicted, the results revealed that job insecurity had a negative impact on trust in the organization and employee SWB. In case of linkage between job insecurity and task performance, the hypothesis was rejected. In general, these findings affirmed that job insecurity was a hindrance stressor, which needed to be considered when managing human resources in the current volatility, uncertainty, complexity, and ambiguity context.