The Impact of Job Insecurity on Employee Engagement and Job Performance: Mediating Role of Engagement

https://doi.org/10.56225/finbe.v3i3.404

Authors

  • Kusmuni Kusmuni Department of Management Science, School of Economics of Indonesian (STIESIA), Sukolilo, Surabaya, 60118 Jawa Timur, Indonesia
  • Suhermin Suhermin Department of Management Science, School of Economics of Indonesian (STIESIA), Sukolilo, Surabaya, 60118 Jawa Timur, Indonesia
  • Kuswanto Kuswanto Department of Management Science, School of Economics of Indonesian (STIESIA), Sukolilo, Surabaya, 60118 Jawa Timur, Indonesia

Keywords:

Job Insecurity, Employee Engagement, Job Performance, Mediation Effect

Abstract

This study investigates the effect of job insecurity on employee engagement and job performance and examines the mediating role of employee engagement in the relationship between job insecurity and job performance. Employing a quantitative research approach with a causal design, the study was conducted at RSUD Dr. H. Moh. Anwar Sumenep, involving all 169 non-civil servant (non-PNS) employees using a total sampling technique. Data were analyzed using Structural Equation Modeling (SEM) to determine the strength and direction of the relationships among variables. The findings indicate that job insecurity has a positive and significant impact on both employee engagement and job performance. Moreover, employee engagement significantly enhances job performance and mediates the relationship between job insecurity and job performance. These results highlight the complex dynamics in the workplace, where job insecurity, despite traditionally being viewed as a negative factor, can drive employees to engage more actively and perform better, possibly due to heightened motivation to secure their positions. The study offers important policy implications for healthcare institutions. Hospital management should prioritize initiatives that foster employee engagement, such as open communication, career development opportunities, and supportive leadership, to buffer the effects of job insecurity. These strategies can help maintain high performance levels even in uncertain employment contexts. Future research is encouraged to validate these findings in other sectors or regions, employ longitudinal designs to track changes over time, and integrate additional variables such as organizational culture, leadership style, and psychological resilience to enrich the analysis.

Downloads

Download data is not yet available.

References

Amalia, SF, Abas, M. & Marhan, C., 2022. Comparison of Job Satisfaction of Civil Servant and Non-PNS Nurses. Journal of Sublimation, 3(1), 12-22.

Aruma, EO & Hanachor, ME, 2017. Abraham Maslow's Hierarchy of Needs and Assessment of Needs in Community Development. International Journal of Development and Economic Sustainability, 5(7), 15-27.

Aulia, 2016. Emotional Intelligence, Work Engagement, and Organizational Commitment of Indonesian Army Personnel. Anima Indonesian Psychological Journal, 31(3), 124-31.

Balakrishnan, C., Masthan, D. & Chandra, V., 2013. Employee Retention Through Employee Engagement - A Study At An Indian International Airport. International Journal of Business and Management Invention, 2(8), 9-16.

Bridgman, T., Cummings, S. & Ballard, J., 2019. Who Built Maslow's Pyramid? A History of The Creation of Management Studies Most Famous Symbol and Its Implications For Management Education. Academy of Management Learning & Education, 18(1), 81-98.

Callea, A., Urbino, F., Ingusci, E. & Chirumbolo, A., 2014. The Relationship Between Contract Type and Job Satisfaction in a Mediated Moderation Model: The Role of Job Insecurity and Psychological Contract Violation. Economic and Industrial Democracy, 1(1), 1-22.

Cao, H. et al., 2013. A Maslow's Hierarchy of Needs Analysis of Social Networking Services Continuance. Journal of Service Management, 24(2), 170-90.

Darvishmotevali, M. & Ali, F., 2020. Job Insecurity, Subjective Well-being and Job Performance: The Moderating Role of Psychological Capital. International Journal of Hospitality Management, 8(7), 1-11.

Darvishmotevali, M., Arasli, H. & Kilic, H., 2017. Effect of Job Insecurity on Frontline Employee's Performance (Looking Through the Lens of Psychological Strains and Leverages). International Journal of Contemporary Hospitality Management, 29(6), 1724-44.

De Cuyper, N. et al., 2019. All Insecure, All Good? Job Insecurity Profiles in Relation to Career Correlates. International Journal of Environmental Research and Public Health, 1(6), pp.1-19.

Desmet, P. & Fokkinga, S., 2020. Beyond Maslow's Pyramid: Introducing a Typology of Thirteen Fundamental Needs for Human-Centered Design. MDPI , 4(38), 1-22.

Etehadi, B. & Karatape, OM, 2018. The Impact of Job Insecurity on Critical Hotel Employee Outcomes: The Mediating Role of Self-efficacy. Journal of Hospitality Marketing & Management, 10(10), 1-25.

Greenhalgh, L. & Rosenblatt, Z., 1984. Job Insecurity: Toward Conceptual Clarity. Academy of Management Review, 9(3), 438-48.

Hair JF, Ringle CM, Danks NP, Hult GTM, Sarstedt M, RS (2023). Review of Partial Least Squares Structural Equation Modeling (PLS-SEM) Using R: A Workbook. In Structural Equation Modeling: A Multidisciplinary Journal (Vol. 30, Issue 1). https://doi.org/10.1080/10705511.2022.2108813

Jung, HS, Jung, YS & Yoon, HH, 2021. COVID-19: The Effects of Job Insecurity on the Job Engagement and Turnover Intent of Deluxe Hemployees and the Moderating Role of Generational Characteristics. International Journal of Hospitality Management, 9(2), 1-9.

Karatepe, OM, Rezapouraghdam, H. & Hassania, R., 2020. Job Insecurity, Work Engagement and their Effects on Hotel Employees' Non Green and Nonattendance Behaviors. International Journal of Hospitality Management, 8(7), 1-12.

Kencana, MRB, 2020. BRI President Director Affirms No Layoffs of Employees Due to Corona and Digitalization. [Online] Available at: https://www.liputan6.com/bisnis/read/4270985/dirut-bri-tegaskan-tak-akan-phk-pegawai-akibat-corona-dan-digitalisasi [Accessed September 2021].

Mangkunegara, AAA, 2017. Evaluation of HR Performance. Bandung: PT. Refika Aditama.

Marchewka, M. et al., 2020. Multitasking Effects on Individual Performance: An Experimental Eye-Tracking Study. European Research Studies Journal, 23(1), 107-116.

Niesen, W. et al., 2018. Quantitative and Qualitative Job Insecurity and Idea Generation: The Mediating Role of Psychological Contract Breach. Scandinavian Journal of Work and Organizational Psychology, 3(1), 1-14.

Pandamsari, AP & Alvionita, L., 2020. Survey: Pandemic Makes 51% of People Depressed, 60% of Employees Anxious. [Online] Available at: https://lokadata.id/article/survei-pandemi-bikin-51-community-depresi-60-karyawan-cemas [Accessed September 2021].

Piero, JM, Bayona, JA, Caballer, A. & Di Fabio, A., 2020. Importance of Work Characteristics Affects Job Performance: The Mediating Role of Individual Dispositions on the Work Design Performance Relationships. Personality and Individual Differences, 15(7), 1-11.

Pradhan, RK & Jena, LK, 2017. Employee Performance at Workplace: Conceptual Model and Empirical Validation. Business Perspectives and Research, 5(1), 1-17.

Ramadhanti, ILF, Darna, N. & Herlina, E., 2021. The Influence of Workload and Job Insecurity on Job Satisfaction (Study at the Civil Service Police Unit of Ciamis Regency). Business Management and Entrepreneurship Journal, 3(2), pp.30-39.

Ruvio, A. & Rosenblatt, Z., 1999. Job insecurity among Israeli Schoolteachers; Sectoral Profiles and Organizational Implications. Journal of Educational Administration, 37(2), 139-58.

Schaufeli, WB & Bakker, AB, 2003. Utrecht Work Engagement Scale: Preliminary Manual. Utrech - Netherlands: Department of Psychology, Utrecht University.

Sitanggang, LMS & Yuliantina, AL, 2020. For the sake of efficiency during the Corona pandemic, a number of banks are cutting employee costs. [Online] Available at: https://insight.kontan.co.id/news/demi-effensi-di-masa-pandemi-corona-senomor-bank-memangkas-bayar-karyawan [Accessed September 2021].

Sugiyono. (2013). Research Methods, Quantitative, Qualitative and R & D (Issue July).

Sugiyono. (2017). Business Research Methods. Alphabet.

Sverke, M., Hellgren, J. & Naswall, K., 2002. No Security: A Meta-Analysis and Review of Job Insecurity and Its Consequences. Journal of Occupational Health Psychology, 7(3), 242-64.

Tabak, F., & Hendy, NT (2016). Work engagement: Trust as a mediator of the impact of organizational job embeddedness and perceived organizational support. Organization Management Journal, 13(1), 21–31. https://doi.org/10.1080/15416518.2015.1116968

Tenerife, J. T. (2017). Employee Engagement Analytics: The Relationship among Organization Engagement, Job Engagement, and Job Satisfaction Explored through Path Analysis. Proceedings of the Sixteenth Asia-Pacific Conference on Global Business, Economics, Finance and Social Sciences, 4(December), 1–16.www.globalbizresearch.org

Tripathi, SP, 2014. Impact of Motivation on Job Performance of Contractual Staff in Devi Ahilya University Indore (Mp), India. Paripex - Indian Journal of Research, 3(5), 1-6.

Vansteenkiste, M., Richard, MR & Soenens, B., 2020. Basic Psychological Need Theory: Advancements, Critical Themes, and Future Directions. Motivation and Emotion, 44(1), 1-31.

Zakaria, MA, Hasanati, N. & Shohib, M., 2019. The Effect of Resilience on Job Insecurity in Honorary Employees. Cognicia, 7(3), 346-58.

Downloads

Published

2024-12-31

How to Cite

Kusmuni, K., Suhermin, S., & Kuswanto, K. (2024). The Impact of Job Insecurity on Employee Engagement and Job Performance: Mediating Role of Engagement. Frontiers in Business and Economics, 3(3), 170–181. https://doi.org/10.56225/finbe.v3i3.404

Similar Articles

1 2 3 4 > >> 

You may also start an advanced similarity search for this article.