The Benefits of Job Security & Stability for Employees

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Posted by: David Garcia April 13, 2024

You probably don’t often think about the phrases “job security” or “job stability,” but the concepts can be at the forefront of many people’s minds. Most workers depend on income earned from their jobs, and no one wants to feel like that may be in jeopardy. 

A secure job can become a prominent part of a person’s future plans, goals, and ambitions – and it’s impossible to build a future on shifting sands. Job security in the workplace has a lot of benefits for employees and employers alike, but surprisingly, many workers have different preferences about job stability.

What Is the Meaning of Job Security? 

Job security generally refers to having confidence that your role with your current employer is secure and safe from layoffs or sudden firing. However, this can mean different things to different people. Some things that influence a person’s sense of security include how well their employing company is performing, how it’s projected to perform, and the overall state of the economy.

Other factors, such as confidence and consistency in company leadership and culture, can also have a considerable impact. While some degree of staffing changes are inevitable, high turnover rates don’t tend to foster feelings of security. 

Why Is Job Security Important to Employees?

Most people use the money from their jobs to live – to pay for food, housing, clothing, children, cars, insurance, healthcare, retirement funds, etc. Ideally, people prefer not to have to worry about their ability to afford these things, which would be jeopardized by being made unemployed. 

In the US, health insurance adds another layer. Most people’s health insurance and their access to healthcare and medicine for themselves and their families are tied to their jobs. As such, job insecurity may seem a direct threat to the health and well-being of employees and their families. 

Beyond just affording the basics, job security informs an individual’s future goals and economic mobility – the potential to move up in the world. A lack of job security can put a halt to your present goals and future plans. 

What Are the Affects of Job Security?

Psychology tells us that people feel and perform better when their basic needs are met. Job security helps employees meet their basic needs and feel confident they’ll be able to continue to do so, increasing productivity and the quality of work. 

However, there’s an old-school mindset that some degree of job insecurity motivates people to work harder out of fear and desperation to keep their position. Unsurprisingly, research has shown that there are more efficient ways to raise productivity. Researchers found that job insecurity negatively impacts innovation, creativity, and collaboration; any positive impacts on productivity are limited and insignificant. 

What Are the Benefits of Job Security for Employees?

Job security has many significant benefits for employees – and it comes as no surprise that the constant worry of losing your job can have detrimental consequences in all areas of life. Each benefit may seem like common sense, but their impact on an employee’s life is profound. 

Decrease Stress and Anxiety

Feeling constant fear that your job is on the line is no way to live. It can take a serious toll on a person’s physical and mental well-being, which spills over into all other areas of life, including friends and family relationships. Compounding stress and anxiety is also a fast track to burnout. 

Employees Feel Valued

Feelings of security and value go hand in hand. Employees who feel valued, recognized, and rewarded for their skills and effort in their position are less likely to worry about being laid off and can focus more on the tasks at hand. 

Improved Performance 

Some degree of stress and anxiety is standard in almost every workplace at some time or another. However, feelings of security can reassure employees during these increasingly trying times. Removing those worries allows people to spend more energy tackling problems and improves overall performance

Increases Productivity and Engagement 

Happy, well-supported employees are more productive and more engaged. Contented workers perform and interface better with each other, leading to less turnover and fostering teamwork and cohesion. This type of environment can also help reduce employee turnover, which can be a big cost-saver for companies by reducing the cost of constant hiring and onboarding. It’s also a great way to attract new talent.

What Are the Differences Between Job Security vs Job Stability?

Job stability means that your role and responsibilities remain consistent over time – things remain stable. On the other hand, job security means you’re likely to be able to stay employed, and you don’t have to worry about being laid off or suddenly fired. Here are the main differences:

  • Job security deals with feelings of safety, value, reassurance
  • Stability is linked with things not changing
  • Stability is not as popular in today’s job market as it used to be, as younger workers often job-hop to learn and earn more
  • Security could also include confidence in one’s ability to land a new position, i.e., their security in the overall market

The specifics and importance of job security and stability can vary from person to person – it depends on their background and unique situation. 

What Careers Currently Provide the Best Job Security?

Here is a list of some of the most secure careers right now:

  • Data scientist
  • Software Developer
  • Mail carrier
  • Accountant
  • Nurse
  • Market research analyst
  • Administrator
  • Physical therapist assistant
  • Web developer
  • Actuary

When Should You Consider Taking a Less Secure Job?

Deciding between jobs and choosing a career path is a very personal decision. Some industries are more volatile and are, therefore, less secure than others. Often, these industries have some extra incentives to entice people despite these risks, such as high pay or good benefits, allowing employees to grow their own security net to fall back on in case of layoffs. 

People in these fields may be highly skilled, sought after, and well-adjusted to volatility and job hopping. It can be helpful to reflect on your priorities and evaluate if your current position aligns with them. It’s also good to evaluate potential future positions through this lens. 

Which Boundaries Should Be Considered Essential Over Job Security?

For some, no boundary is more important than security. It depends on the person, their lifestyle, and priorities. There is no one-size-fits-all answer. Some people prioritize work, while others want to balance family, hobbies, and well-being – they may want their life to revolve around something other than their job. 

Other boundaries may include being treated well and respectfully and compensation for work outside of normal hours or responsibilities. Legal boundaries, such as adherence to safety regulations, meeting industry quality standards, reasonable accommodation, and freedom from harassment and retaliation, should always be non-negotiable. 

How Can Employees Influence Their Job Security?

While factors like the economy, industry volatility, and company performance and culture are significant drivers of job security, employees can do a few things to bolster their position.

Network, Network, Network

Networking is a great way to make yourself a central part of the team – and even secure other opportunities. Creating and maintaining relationships can help you find new positions and give you a leg up in interviews. 

Seek Out Opportunities for Growth

Try continuously to learn new skills and take on new challenges – it will improve your performance and bolster your resume. It can also make you an indispensable part of the team. 

Be Receptive to Constructive Feedback

Be open to well-meaning, constructive input. Our words and actions aren’t always received in the way we intend, and this type of feedback can be an excellent opportunity to understand how others perceive you and for you to grow in new ways. 

How To Live With Job Insecurity

The negative impacts of job insecurity are well documented; it’s physically, emotionally, and financially draining. People in these situations often feel like their options are limited, but it can be a good idea to explore other job opportunities if you are able.

You can also prioritize your mental and physical health as much as possible: try adding in short walks throughout the day, eating healthier, and exploring therapy or medication if needed. 

If you’re able, try to factor insecurity into your financial planning. Leave yourself a nest egg if you can to have something to fall back on. Be mindful of insurance alternatives and unemployment help so you’re not caught off-guard if you were to be laid off.

Frequently Asked Questions

Why Are Job Security and Stability Important?

Many people value job security and stability in their careers. This can mean different things to different people, but most employees work because they need to earn a wage. When job security and stability are questioned, a person’s entire life and comfort may be threatened.

What Is the Role of Job Security on Employee Satisfaction?

Being able to feel confident and secure in your job is essential. It allows employees to feel safe about their current situation and their ability to attain future goals. This creates room for employees to be more innovative, motivated, and engaged, which is fantastic both for productivity and employee satisfaction.

How Important Is a Stable Job?

Depending on their situation, people can have many differing opinions on the importance of job stability – there’s no one correct answer. Older generations prioritize a stable job, while many younger workers prefer to job-hop or assume positions that present them with new challenges and opportunities for growth.

How Does Job Insecurity Affect Employee Performance? 

Job insecurity has many profoundly negative impacts on employee well-being and performance. It creates intense stress, uncertainty, and fear, which can invade every aspect of a person’s life, including their health and family relationships. People become tired, agitated, and burnt out – not conditions where someone will reach peak performance.

Final Thoughts

Job security – or feelings of confidence and assurance that you won’t lose your job – is vital to an employee’s health, well-being, and performance. At the same time, only some people prize job stability or the lack of changes in duties and responsibilities. However, fostering a culture that promotes security helps attract and retain top talent, giving your company a positive reputation amongst potential recruits. 

For everything relating to recruitment and staff retention, think ScoutLogic. ScoutLogic offers several services, such as background checks and screening, that can help companies streamline their hiring process, saving both time and money.

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