Feeling like your job is at risk?

Mass employee termination in Nigeria is mostly experienced in the private sector. For example, in 2009, MTN Nigeria laid off 63 employees and barred them from related employments in rival companies for four years. Similarly, in 2014, Etisalat reportedly sacked over 2000 employees, Glo let go 54 of their engineers in July 2016, while Airtel reportedly sacked 30% of its workforce in 2015 for restructuring purposes. Mass termination is however not unique to telecommunication agencies in Nigeria. Nigerian banks, which are the prime suspects of mass employment terminations, sack employees on a regular basis. Many employees go from being employed one minute and unemployed the next, sometimes without prior notice. This state of ambiguity and changes can make employees anxious, stressed and insecure about the nature and continued existence of their jobs.

In work and organizational psychology, job insecurity is the perceived discrepancy between an employee’s experienced and preferred levels of employment security. While job insecurity is viewed as a subjective phenomenon that is based on the work context and the employee’s perception of it, job insecurity can also be viewed through the form of employment, such as holding a temporary work contract. This shows that:

• Feelings of job insecurity varies between employees exposed to the same work situation
• Employees may react differently to perceptions of a job at risk

Job insecurity may be a perceptual phenomenon, but these perceptions are generally affected by environmental threats. For example, job insecurity tends to increase with rising national unemployment rate, and in response to technological and other changes in the business environment (e.g. globalization) that contribute to industrial and occupational decline, shrinking demand, and the outsourcing of labour. Individual variables are also relevant. Personality traits of negative affectivity and locus of control could explain high levels of job insecurity. Other traits, such as low core self evaluations and low self esteem, as well as several experiential (e.g. emotional exhaustion) and demographic factors (e.g. minority, tenure) are also linked with job insecurity.

Thus, every factor, condition or circumstance that influences either the perceived probability of job loss or the perceived severity of the consequences of job loss, or both, may increase feelings of job insecurity.

Job insecurity can be regarded as a future-focused phenomenon. That is, it reflects a forecast about an event, specifically a loss event, which might happen at some point in the future. Therefore, not all anticipated or potential job related events creates job insecurity, rather only those that involve the “potential for harm or loss”. Because threats have not yet materialized, job insecurity involves uncertainty.

Job Insecurity causes stress

Job insecurity is regarded as one of the major stressors in the work environment, specifically because it is associated with uncertainty. Job insecurity as a stressor is unsurprising if the functions of work in an individual’s life are considered. Work provides financial security, it structures time, defines an individual’s social status and provides social contact. Therefore, the possibility of losing these meaningful aspects of life is likely to create severe stress. Moreover, job insecurity has been associated with individual outcomes, such as low self esteem and high anxiety. Over a prolonged period, job insecurity could lead to burnout, depression, psychiatric problems and high sickness presenteeism (working while ill). Negative work related outcomes due to job insecurity include, low job satisfaction, diminished commitment, negatively affected organizational trust and loyalty, higher turnover intention, lower work performance, and greater incivility at work.

Job Insecurity affects the organization

In terms of consequences to organizations, the perception of job insecurity is associated with deterioration in organizational commitment, distrust in company management, resistance against organizational change, a performance decrease and a reduction in organizational citizenship behaviours. Job insecurity is one of the components of the traditional psychological contract between employers and employees. Thus, when less security is offered, employees may attempt to restore the resulting imbalance by showing less involvement, less motivation and a decrease in performance.

What are some signs your job may be at risk?

Job insecurity may be a perceived phenomenon, but there are still some signs that your job is at risk. If you ever get that gut feeling that something is really wrong, you hear rumours about financial troubles within your organization, or you are no longer invited to join important meetings, you should probably be a bit worried. Look out for these tell-tale signs:

• You are given fewer projects and responsibilities

If you have been demoted, your role moves into a less important position within the company or your authority is reduced and you are given less meaningful work, it could mean you are about to be handed a pink slip

• New management/mergers/acquisitions

It is not uncommon for new managers to clean house, so these situations always bring an air of uncertainty

• Your relationship with your boss suddenly changes

If your boss becomes suddenly unfriendly or critical, there is no interest in small talk, and a smile is as elusive as your last raise, it is possible your job is at risk

• Poor feedback and reviews

There is a good chance you are losing your job if your performance review is frequently coming back with reoccurring issues

• Financial troubles

A certain deterrent to job security is unprofitability. Missed budgets, deadlines and an all round lack of revenue generation can put positions at risk

• You feel invisible

If you suddenly feel like it would not matter if you didn’t show up at all, your correspondence goes nowhere, your managers do not recognize your completed projects, or your project status reports are ignored, you should start to worry

• Someone with the same skill set as you has just been hired

If you see that someone has been brought in with similar skill set, and is being trained for duties much similar to yours, you should worry about the future of your job, unless there is a very clear reason for such an expansion

Essentially, at company level, company performance, management changes, as well as formal and informal announcements of impending changes serve as more proximal warning signs that one’s job might be at risk and are accordingly associated with increased job insecurity.

When you think your job is at risk, there are a few things you can do:

• Control your emotions

Develop a strategic approach and do not let your fears get the best of you

• Show your success

Do not be afraid to fend for yourself, as certain managers may not be aware of your accomplishments

• Produce outstanding work

Put in more effort in your work but do not overdo it as it will be counterproductive to your performance

• Be visible and visibly helpful

Hiding is not a good option to avoid the sack. Perform actions that will help your employer see your larger value as a driven contributor and leader

• Start a discreet job search

Think about how your current job has added to your experience and then search for jobs that advance your career.

• Remain confident and professional

This may be difficult, but your poise, confidence and professionalism is significant. Showing strength and producing under duress speaks volume to your value

• Save your money

Few things are more stressful than worrying about how you will pay your bills if you are suddenly laid off. This could mean you will likely accept the first job offer you receive even if it is not the right fit. But if you save at least three to six months of living expenses, it affords you the time you need to find the best opportunity that is right for you.

A positive attitude can make a difference. Do not go on the offensive or become overly defensive. This will only confirm your lack of interpersonal skills. Also, do not discuss with your coworkers about your fears. Furthermore, pleading for your job or saying negative things about your boss will not make you more desirable as an employee. It is important you try to see the big picture. Realize that being laid off could be good for your career.

As a result of the Covid-19 pandemic, many people have lost their jobs, and others that remain in work or on furlough are anxious about future redundancies. It is thus important for managers to address potential issues within the workplace by:

• Communicating with honesty: being honest about the current situation and acknowledging those areas that are still ambiguous goes a long way. Try to speak openly about potential difficulties and make it clear how employees can give feedback. Also, commit to regular updates to build an atmosphere of mutual trust.
• Understanding how people react to change: Managers should consider that employees could react differently to difficult situations. This helps to empathize and respond appropriately.
• Looking for ways to continue motivating employees: Covid restrictions may make it challenging to motivate employees in usual ways. For instance, team get togethers or away days could be hard to arrange. So, think about other ways, such as a thank you card sent to an employee working at home. Companies should foster a sense of belonging by making employees feel cared for and showing employees that their contributions are valued.

The Covid-19 pandemic has provided extra challenges to consider. CEOs and managers must keep an eye on internal matters, including any stresses and feelings of insecurity within their own teams. Providing the human touch will allow companies face difficult situations. Here at PAT Consulting, we provide consultation on dealing with stressors in the workplace and improving the well-being of employees.

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