Job Security ^HOT^
Job security is the probability that an individual will keep their job; a job with a high level of security is such that a person with the job would have a small chance of losing it. Many factors threaten job security: globalization, outsourcing, downsizing, recession, and new technology, to name a few.
Basic economic theory holds that during periods of economic expansion businesses experience increased demand, which in turn necessitates investment in more capital or labor. When businesses are experiencing growth, job confidence and security typically increase. The opposite often holds true during a recession: businesses experience reduced demand and look to downsize their workforces in the short term.
Governments and individuals are both motivated to achieve higher levels of job security. Governments attempt to do this by passing laws (such as the U.S. Civil Rights Act of 1964) which make it illegal to fire employees for certain reasons. Individuals can influence their degree of job security by increasing their skills through education and experience, or by moving to a more favorable location. The official unemployment rate and employee confidence indexes are good indicators of job security in particular fields. These statistics are closely watched by economists, government officials, and banks.
Unions also strongly influence job security. Jobs that traditionally have a strong union presence such as many government jobs and jobs in education, healthcare and law enforcement are considered very secure while many non-unionized private sector jobs are generally believed to offer lower job security, although this varies by industry and country.
This is a list of countries by job security, an important component in measuring quality of life and the well-being of its citizens. It lists OECD countries' workers' chance of losing their job in 2012, with some non-OECD countries also included. Workers facing a high risk of job loss are more vulnerable, especially in countries with smaller social safety nets. This indicator presents the probability to become unemployed, calculated as the number of people who were unemployed in 2012, but were employed in 2011 over the total number of employed in 2011.
While all economies are impacted by market forces (which change the supply and demand of labor) the United States is particularly susceptible to these forces due to a long history of fiscal conservatism and minimal government intervention.
According to data from 2014 employee confidence reports, 50% of all current workers 18 and over feel confident in their ability to find a new job if necessary, and 60% are confident in the future of their employer. Job insecurity, defined as being worried about becoming unemployed, is a concern to 25% of U.S. workers.
Overseas outsourcing (sometimes called offshoring) may decrease job security for people in certain occupations such as telemarketers, computer programmers, medical transcriptionists, and bookkeeping clerks. Generally, to outsource work to a different country the job must be quick to learn and the completed work must be transferable with minimal loss of quality.
The main difference vis-à-vis the United States is the system of indefinite contracts. In most European countries many employees have indefinite contracts which, whilst not guaranteeing a job for life, make it very difficult for the employer to terminate a contract. Employees who have legally acquired these rights, for example because they have been with a company for two years continuously, can only be dismissed for disciplinary reasons (after a number of formal warnings and subject to independent appeal) or in the case of a company undergoing restructuring (subject to generous laws on redundancy payments and often with retraining paid for by the company). In Spain, for example, such employees are entitled to 45 days redundancy pay per year worked. The high cost of redundancy payments is in practice what gives employees job security.
Whilst employees who have such legally binding, indefinite contracts are in the enviable position of knowing that they (and their family) have complete financial security for the rest of their lives, it is important to realise that these obligations work both ways. In some countries such as Germany a company may prevent an employee (whose occupational training they have paid for) from leaving to take up a better post elsewhere until compensation is agreed. An employee of a company about to fold may feel compelled to stay with the company, even if they are offered work with a different firm.
Every company will have a mix of employees on different types of contract. Indefinite contracts can also exist for seasonal work. These so-called discontinuous contracts mean that a hotel, for example, may dismiss its staff in the autumn, but it must take the same people back on again the following spring.
In less regulated European economies, such as the United Kingdom, it is much cheaper to sack permanent employees. In Britain, employees are only entitled to a legal minimum of one week's redundancy pay per year worked (one and a half weeks for workers over 40 years old). Instead, private- and public-sector employees who feel they have been unfairly dismissed have the right to take the company to an Employment Tribunal in order to be re-instated or to obtain extra compensation. It is not necessary to go through the normal court system.
In Sweden, employment contracts can be time-limited, and can be extended for new time-limited periods, or not, without reason. This is only allowed for the first two years of employment. At expiration the employee will stand without job and without compensation if no extension takes place. Once with an indefinite contract the employer may only lay off people for strong valid reason. One reason could be for the employer needing less workers. In that case the general law is the person who hold their employment the longest are the last when losing their job.
In all European Union countries an employee retains their existing contractual rights if their company is taken over under the Acquired Rights Directive (in the UK, known as TUPE) so the years spent working for the old company would count when calculating redundancy payments, etc.
In India job security is high as Indian labour law make firing difficult for permanent employees. Most Indians work till retirement in the same company apart from workers in some sectors such as technology. Due to large population, competition is high but so is the size of the job market.
For some people, work offers a sense of purpose and meaning. We can often tie our identities, our passions, and who we are as people to our work. Beyond a sense of identity, job security matters for many reasons.
Job security comes with a feeling of protection against things like layoffs, economic downfalls, and other factors that could impact employment. Here are five reasons why job security is so important for both employees and employers.
A recent study looked at job insecurity and employee engagement. The study found that job insecurity negatively impacts employee engagement. Gallup found some interesting data that backs up this stat. Employees who are insecure about their job are 37% more likely to be disengaged in the workplace.
But when employees feel secure, safe, and valued, employee engagement increases. An engaged workforce has a positive ripple effect. This includes better employee retention, less turnover, and even better overall business performance. And job security plays a key role in how connected employees feel to their organization.
Job security. Job security essentially means employees feel secure and are unlikely to be fired, laid off, or dismissed. Job security eliminates that risk and fear that a job would simply cease to exist or disappear.
When it comes to job security, there are some professions that are more bulletproof to external factors than others. We looked to US News for its analysis and rankings for careers with the best job security.
One of the key tenants of future-mindedness is preparing for the road ahead. Future-minded leadership is about being prepared for roadblocks and setbacks that may occur along the way. A combination of optimism and pragmatism can help you build the skills necessary.
Job security can feel entirely out of your control. But in reality, as an employee, you are in the driver seat of your career. And there are things that you do have control over to help impact your own job security.
For example, you might volunteer for projects out of your comfort zone. Or you might attend a training or class to build a new skill. Whatever the learning opportunity looks like, keep an open mind. You never know how learning opportunities might benefit your career journey.
One 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.
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.
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.
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. 041b061a72