Job security definition

Job security is the feeling that your job is safe indefinitely. In other words, it’s the confidence your employees feel in their contributions to your business and potential to advance their careers. Some positions provide much greater job security because they’re essential to the company’s goals or needs. A good example of this is healthcare workers who serve at overcrowded hospitals because the hospitals simply can’t operate without them.

Entry level workers may not feel they have as much job security because they might not manage client accounts or work on projects that are critical to your company’s objectives. Their positions can be stepping stones toward better opportunities, but these workers might feel replaceable. Promoting a company culture that values everyone’s accomplishments can remind these employees that they’re noticed and important.

Employees can have an impact on their own job security. Employees who take initiative and continue learning new skills also help themselves have greater job security by making themselves more valuable in the eyes of the company. If you reward workers who adhere to company policies with recognition and new opportunities, they’ll have no reason to suspect they’re in line for the next layoff.

Why job security matters

Job security is often a concern for employees. Families who live paycheck to paycheck or who don’t have much in savings worry about a sudden job loss. Lack of job security can cause major stress on employees, which can affect their work performance and overall well-being. That means that even though job security mainly seems like a benefit for employees, it can be an advantage for your company, too, since job security and employee performance are related.

Benefits of job security

Along with understanding the job security definition, it’s important to understand what benefits you may get from it. Offering your employees job security can have the following effects on your business.

Reduced turnover

By making your workers feel secure, you can reduce employee turnover and lower your hiring and training costs. Employees who feel secure are more likely to stay with your company, and they might continue expanding their skills to advance through the ranks. This can make filling top positions easier and introduce new skills and knowledge into your company. While workers who underperform aren’t guaranteed job security, recognizing one person’s achievements may inspire someone else to improve.

Positive work environment

If everyone is constantly stressed about potentially losing their jobs, you’ll likely notice a lack of positivity around the office. Employees who know their job is secure will likely feel better and have a more positive attitude about the company and work in general. That can help create a more positive work environment. It can also create a more relaxed atmosphere where coworkers get along better. Being stressed can cause people to snap at each other and negatively impact working relationships.

Higher productivity

The stress of worrying about job loss can interfere with productivity. For some employees, knowing they don’t have to worry about their jobs lets them focus more on their duties. This allows them to get more done.

Positive image

High job security also looks good to outside parties. If you’re known as a company with good job security that treats its employees well, your public reputation can get a boost. This may help you attract more job applicants and improve customer loyalty.

Potential drawbacks of job security

It might seem like job security only offers benefits, but there are some concerns on the employer’s end to consider. These drawbacks shouldn’t stop you from offering job security when possible, but being aware of them may help you come up with solutions to prevent them. Some potential drawbacks of job security include:

• Lack of motivation: When there’s no threat of losing their job, employees might not feel motivated to work hard. Some employees may do the bare minimum.
• Boredom: Other employees might grow bored because there’s nothing keeping them on their toes.
• Poor performance: Another possible effect is poor performance. If employees aren’t worried about job loss, they might slack on work quality, miss deadlines or otherwise perform poorly.
• Less growth: When an employee knows their job is secure, they might stop learning new skills or putting effort into their job. This limits their room for growth and advancement, and it can keep your company from gaining those new skills that could help you grow.

How to offer job security

You can’t predict the future or foresee all potential factors that could force layoffs, but you can improve job security in some ways. Sometimes, it’s simply a matter of communicating with your employees. Here are some ways to offer your employees more job security:

• Talk about the future: You might know that your employees’ jobs are safe for the foreseeable future, but they might not. Letting them know about future plans and the company’s current state may give them more confidence in their job security.
• Hire from within: Promoting current employees who have the right skill set through internal versus external recruiting can help show your employees that you care about them and that they have a future with your company.
• Focus on growth: Emphasizing continued growth for your company helps secure the need for your employees. Relying on current clients without continuing to seek new ones may put you in a difficult position if you lose those customers in the future.
• Cut back: If you face a decrease in business or a difficult period, look for ways to cut back on expenses to allow you to keep your employees on staff.
• Consider alternative options: Finding alternatives to layoffs during difficult times can also give your employees more security. You might offer them the option of cutting their hours instead of losing their job completely, for example. When business picks up, they can return to their full-time hours. You might still lose employees in this scenario if they find a full-time job somewhere else, but it can keep them from losing their full paycheck.
• Hire wisely: You can’t expect your employees to do the jobs of two or three people, but hiring too many employees may also create a difficult situation. When hiring employees, analyze your company’s needs to determine if additional staff members are really necessary.
• Set expectations: Having high expectations for employees and giving them regular feedback helps them perform better. This can give them greater job security by reducing the risk of them getting fired. Providing additional training opportunities can also help by expanding their skill set and making them valuable employees that you won’t want to lose.