What is the definition of job security?
There are two facets of job security: actual job security and perceived job security. One’s actual job security refers to how resistant a particular employee’s position is to an economic downturn, a round of layoffs, job performance and other factors.
An employee’s perceived job security refers to how confident they feel about their position’s ability to withstand external forces like industry changes, company restructuring or decreased sales. It also includes how they regard their ability to fulfil their role.
Why do employees value job security?
There is no denying the importance of job security to your workforce. Why do employees and potential hires crave job security? Here are a few reasons that job security is deemed important:
Reduces anxiety
Stable employment provides your workforce with a significant boon to their well-being. Conversely, a sense of job insecurity can greatly undermine an employee’s overall mental and physical health. Ongoing anxiety over potential job loss and possible financial hardships can cause a multitude of problems, including sleep disruptions, panic attacks, gastric and cardiovascular issues, substance abuse and other physical or mental health manifestations.
Provides financial security
With grocery, housing and fuel costs rising, your employees find comfort in having a secure pay cheque. This not only enables them to make financial plans and purchases, but this sense of financial security frees them to pursue other aspects of their personal lives. In this way, job security sets the foundation on which they can build their other hopes and dreams.
Increases job satisfaction
Job security makes someone feel like they matter, that the work they do is important, and that they are an integral part of the organization. As a result, they feel invested in their role and the company. This enables them to thrive and enjoy greater job satisfaction and happiness at work.
What is the state of job security in Canada?
The world can be a noisy place. With a steady influx of information competing for your attention, it can be difficult to formulate an accurate picture of just how secure jobs are in Canada. In order to fine-tune this image, it is helpful to examine the numbers.
In December 2023, Statistics Canada’s Labour Force Survey showed that people who were unemployed in November of that year were more likely to have been laid off than those from the previous year. According to these statistics, job security is on the decline.
Furthermore, in October 2024, Statistics Canada‘s report on job tenure illustrated that some employees in certain industries enjoy a shorter employment tenure than others. The proportion of employees with less than one year on the job was highest in “accommodation and food services (23.2%), business, building and other support services (18.6%), and construction (15.7%).” An employer within one of these industries may find it more difficult to foster a sense of job security in their workforce.
How can your company increase job security?
When it comes to fostering a sense of job security, your approach must consider actual job security and perceived job security. You can take steps to make your employees more resistant to layoffs while fostering an overall sense of job security. Here are a few ways to accomplish both:
Nurture learning and development
Developing employee skill sets can foster job security in several ways. By supporting employee lifelong learning and providing opportunities to learn, your employee enjoys greater job satisfaction and feels more valued. This enhances their sense of job security. Your organization also benefits from a more highly skilled workforce. This can make your company more competitive, which can increase real job security. Furthermore, by taking steps to impart skills like managing change and adaptability, you can enhance your organization’s ability to pivot when necessary — further increasing actual job stability.
In the event of downsizing, your employees’ newly developed skills will better equip them to take on new roles within your organization or find new employment more easily. This knowledge or “back-up plan” can ease any real or perceived job loss anxieties.
Promote from within
There are several obvious benefits associated with promoting from within, including decreased hiring costs, lower training requirements, boosted employee engagement and increased employee loyalty. Another benefit is a heightened sense of job security. If employees can envision advancing along an unimpeded career path, they will be less anxious about job security. This is why it is important that valued team members do not feel passed over for promotion, particularly by outside candidates.
Set objective job expectations
A sense of job security does not always hinge on a company’s performance. It can also be related to how an employee actually performs their role and how they perceive their performance. For this reason, it is imperative that each position has a clear and concise job description with measurable criteria for assessing one’s performance. These performance indicators enable the team member to have a clear picture of what is expected of them and whether or not they are meeting these expectations. It is also important to provide frequent feedback regarding job performance. This can dramatically increase levels of perceived job security while offering actionable steps to achieving real job security.
Plan ahead
The best way to create job security is to take care of your company’s overall fiscal health. By planning for potential problems before they happen, you can create a more resilient organization that can adapt to change and pivot when needed. This requires pragmatism, creativity and foresight. By preparing and equipping your team for every eventuality — even the unexpected — you can greatly enhance job security at your company.
Create a positive atmosphere
It’s hard to feel down or anxious in an upbeat environment. By investing in a positive workplace, your company is communicating that “all is well” and that it plans on being around for the long haul. By offering well-being initiatives, team-building exercises and benefits employees will value, you can foster a strong sense of job security. This positive culture can be further complemented by things like ergonomic seating and keyboards, ideal lighting and ventilation, comfortable break spaces, plants or a pleasant view.
How can communication boost job security?
In an atmosphere of closed-door meetings, rumours and sudden cost reductions, it’s easy for an employee to become anxious about their job security — even if those worries are unfounded. The best way to foster an overall sense of job security is to build trust through transparency and open dialogue. Here are some tips that can enhance your internal communication efforts:
Encourage employee engagement
If you truly wish to know how your employees are feeling about their job security, ask them. This can be done via one-on-one meetings or surveys. Not only will creating a speak-up culture provide you with concrete information, but it will also let your employees know that you value their opinions and feelings.
This open dialogue is pointless if you don’t act on it. Take measures to address any concerns that become evident and consider these findings when making future decisions. By actively demonstrating that your employees’ voices have been heard, you can build trust.
Practise transparency
When an employer is experiencing financial woes, the employee is often the last to know. Situations handled in this way can breed distrust and a feeling of job insecurity. Plus, there are times when the truth isn’t nearly as scary as what is being said in the rumour mill. By practising workplace transparency and keeping your employees abreast of your company’s situation, you can prepare them for what is likely to follow and allay unfounded fears. You can also invite them to actively participate in proposed solutions.
Make it a team effort
Armed with a truthful picture of your company’s situation, your team members can now work together to make your organization more innovative, competitive and agile. This more cohesive team will be in a better position to reach company goals, increasing actual job security.
A sense of job security is a key component of a happy, productive employee. Thankfully, you can nurture an atmosphere of trust and security among your employees by following a few actionable steps. The mental and physical well-being of your team will be well worth the effort.
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