According to Valletta(2000) Job security is reliant on financial system, current business conditions, and the individual’s special ability. It has been found that people have more Job security in times of economic expansion and less in times of a recession. Also, some laws strengthen job security by making it illegal to fire employees for specified reasons. Unemployment rate is a good indicator of job security and the state of the economy and is tracked by economists, government officials, and banks.
Personal factors such as education, work experience, job functional area, work industry, work location, etc, play an important role in determining the need for an individual’s services, and impacts their personal job security. Since job security depends on having the necessary skills and experience that are in demand by employers, which in turn depend on the prevailing economic condition and business environment, individuals whose services are in needed by employers tend will enjoy higher job security.
2.11.2 Job Security and Motivation
An important finding for organizations to note is that job security has a rather feeble connection to work motivation (Brown, 2006)This is a vital piece of information to researchers and businesses, as the idea that job security and Job performance are directly related to one another is often cited in the media and in someMedia and non-academic management literature A recent meta-analysis found job security and Productivity is positively correlated (Patton, 2001)Further, the meta-analysis found that the relationship between job security and job motivation can be moderated by job complexity. In short, the relationship of feeling of job security to productivity is not necessarily straightforward and can be influenced by a number of other work-related constructs, and the notion that “a happy worker is a productive worker” should not be the foundation of organizational decision-making.
According to Lindner(1998)if Hertzberg;s theory is followed, management should begin by focusing on pay and Job security (hygiene factors) before focusing on interesting work and full appreciation of work done (motivator factors) in order to motivate the employees.