Importance of Employee Job Security for Workplace Success

employee job secruity blog imageOne thing most people desire in a career is job security. When we are sure that we will keep the job with relative ease and don't have to worry about various risks that may make us lose our job, we can focus on doing a better job and developing our career. 

Thus, employers and business owners need to develop and communicate a clear job security policy to improve workplace productivity and success. Here, we will discuss why it's essential and how we can implement it.  


What Is Employee Job Security?

In a nutshell, job security is an assurance that an employee can keep their job in the foreseeable future with minimal influences from outside factors. 

Typically, a business can offer better employee job security in times of economic expansion and vice versa; job security is usually worse during times of recession. Job security also varies depending on the niche/industry: jobs in law enforcement and healthcare are typically more 'secure' than employment in the private sectors. 

Below are some of the most critical factors affecting employee job security in an organization: 

  • Economic conditions as briefly discussed above
  • Business conditions. If the business is booming, then it can keep more employees
  • Local legislation regulating labor termination. Some places allow more painless termination than others, which might affect job security
  • Individual factors of the employee from performance, education, work location, experience, and so on
  • Labor organizations (union)
  • How important/valuable the employee's skills and experience are to the company

The Importance of Job Security

It's relatively obvious that job security is crucial for any employee, but it is also equally important for the employer.

For an employee, job security means the security of income, which will translate into reduced stress. A stressed employee will be less productive on the job and can also cause various long-term effects like depression. 

For instance, established job security would translate into less employee turnover, which will reduce hiring costs and better overall growth for the company. 

Below, we will discuss more of the advantages (and drawbacks) of establishing job security in your organization.


Advantages and Disadvantages of Employee Job Security

The main advantages of establishing job security include, but not limited to: 

  • Job security will translate to employees who settle down in a long-term position to advance their careers. Employees with long-term commitments in their careers tend to have a better chance of achieving their career goals than those in constant fear of losing their jobs.
  • Job security typically results in a more relaxed atmosphere in the workplace.
  • Job security results in better employee engagement. More satisfied employees lead to a reduced chance of employee turnover.
  • A secured job will improve the employee's efficiency level and productivity.
  • Recruitment can be costly and can significantly consume time and effort. Job security will translate into a lower employee turnover, which will also mean a reduced need for recruitment.
  • Employee job security can improve the organization's financial statement's bottom line, mainly due to the reduced recruitment expenses.
  • Established job security also boosts the organization's reputation and image. Many clients would prefer working with organizations that treat their employees well.

There are, however, some drawbacks to consider when establishing employee job security: 

  • When an employee becomes too secure, they might lose the hunger to improve themselves, which can be counterproductive for their productivity and efficiency levels. This can result in things like poor performances, missed deadlines, and bad overall results. 
  • Employees might rely on assigned workloads and see no incentives in being creative.
  • Job security can produce boredom, and when prolonged, it can also cause the employee to feel useless and depressed

Employee Job Security In Practice

Establishing job security goes way beyond establishing a legal contract, and at the center of it is a good relationship between the employer and employees. 

Here are some important practices in establishing job security and improving workplace satisfaction: 


Prioritize in-house, permanent employees

Nowadays, it might be tempting to stick with freelancers and remote workers, especially thanks to technological advancements. However, it's also important to keep and value high-quality talents in your organization. It's best to approach the recruitment process as an employee retention program instead of hiring an employee with a pre-determined termination date. 


Communicate your efforts visibly

Make an effort to interact with your employees more often and communicate your views, expectations, and future plans as clearly as possible. Don't be afraid to discuss things with your employees, including non-work-related topics. 


Manage expectations

In a professional relationship between employees and employer, it's important to understand that the psychological contract can be much more important than your written, legal contract. A psychological contract is an unwritten contract between an employer and employee managing sets of expectations in a nutshell. 

Employers should jot down as many of these unwritten expectations as possible and ask your employee to do the same (and let them remind you when it's due). Again, maintaining transparency is very important in creating tangible job security. 


Provide the necessary infrastructure and tools

You can't make an employee think that they are secure if you don't give them the required tools to do their job well. Understand their needs, and provide the infrastructure and tools they need. If, for example, there are budget issues in procuring these tools, discuss the situation with the respective employee(s) and figure out a solution together. 



Establishing and maintaining employee job security is essentially about the company admitting that it will only be as good as the structure management has implemented. This is why good job security and stability are going to improve workplace success in the long run. 

While the modern gig economy and remote working may make it seem like physical relationships and permanent job security are the things of the past, they are much more critical than ever before. By providing your employees the stability to continue working with you, you can improve their productivity while reducing your organization's costs. 

HRO Today Yoh Workers Confidence Index

About the Author: Mike Khorev is an SEO consultant who helps SaaS, software, IT, technology, B2B and startup companies generate more sales and grow revenue online. He offers expert advice on marketing your company the right way through performance-based SEO, inbound marketing, conversion rate optimization, search engine marketing and many other online practices.

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