Job insecurity isn’t just “part of the job”, it can be deeply damaging to people’s mental health and well-being. But this doesn’t mean we can’t do anything about it.
Organizations and managers who act with transparency and fairness can reduce this uncertainty and help employees feel more secure. This will lead to happier employees shown through better performance, lower staff turnover and greater trust in their leaders.
1.Threat to basic needs and stability
At a psychological level one of our core needs is for stability and predictability and we need to know roughly what lies ahead. When job security is threatened that sense of safety is undermined. People begin to worry about how they will pay the rent or mortgage or even how they will feed their family. When those basics are at risk, stress ensues.
2. Uncertainty breeds overthinking and anxiety
When we don’t know what will happen we tend to imagine the worst. We replay possible scenarios over and over in our minds and that level of overthinking is stressful. It often causes anxiety, difficulty sleeping, trouble concentrating and mood swings. Our brains are naturally wired to look for threats, but job insecurity triggers, threaten our thinking.
3. Loss of control
Feeling in control over your work situation really offers reassurance in your job role. But when decisions are made behind closed doors, or when changes loom (for example reorganizations, mergers, layoffs) with little communication, people feel utterly powerless. That sense of helplessness then adds to stress.
4. Reduced self-esteem and identity threat
For many people, they feel their job is part of who they are. So, losing a job or believing that it could happen threatens that identity. Also, people sometimes internalize insecurity, thinking “Am I not good enough?” or “Maybe I’ll get the blame.” That undermines confidence and increases psychological vulnerability.
5. Overspill from work to home
Stress at work doesn’t stay at work. When someone is constantly worried about their job they often carry that anxiety home affecting their family life, health (sleep, eating, immune system), and relationships. Over time this can lead to burnout, depression or chronic anxiety.
There is research to back this up: for example, in a large US-study greater perceived job security was strongly associated with lower risk of psychological distress and anxiety. Also, more than half of US workers say job insecurity has had a significant impact on their stress levels.
What Managers and Businesses Can Do To Help
Since insecurity is a major stressor it’s in the best interest of both employees and employers to reduce it wherever possible. Here are some examples of interventions at managerial level that have good evidence of working.
1.Transparent communication
One of the strongest support mechanisms is regular, honest communication. When businesses are open about their plans, challenges, what’s known and unknown, employees are less prone to imagine the worst. Even if there might be difficult news ahead, knowing that helps people mentally prepare.
2. Active listening and empathy
Managers who take the time to listen attentively to employees’ worries and acknowledge them help reduce feelings of isolation and anxiety. By showing empathy a manager helps the person feel heard and supported.
3. Clear roles and feedback
When people understand exactly what their responsibilities are and what’s expected of them and how well they’re doing, there is less room for anxious uncertainty. Realistic goals that clearly communicate help.
4. Job flexibility
Allowing some flexibility (hours, location, scheduling) helps employees manage stress in their lives outside work. It can give a sense of greater control which helps buffer insecurity. Research shows, flexibility and perceived job security together have lower odds of causing serious psychological distress.
5. Training, upskilling, and professional development
If employees feel they are learning and growing and their skills are valued and can transfer elsewhere, this gives them a fallback. Being able to adapt to change also reduces fear. Managers can invest in training or create opportunities for internal progression.
6. Psychological safety and support
Creating an environment where people feel safe to express doubts, fears, or ask questions without fear of negative consequences helps a lot. Also providing access to mental health support (counselling, employee assistance programmes) or peer support. “Safety” isn’t just physical but also emotional.
7. Monitor workload and avoid overloading
Ironically, job insecurity often coexists with people doing more than before, hoping to prove themselves. That can lead to burnout. Managers need to watch for overload by redistributing tasks and making sure employees take rest periods.
How Businesses Can Help
It’s not just in the lap of the managers to sort these issues out. Businesses as a whole can adopt policies and culture change that reduce job insecurity as a chronic issue. Some strategies to consider:
● Strategic planning and forecasting clearly so potential threats (market downturns, automation, outsourcing) are anticipated and discussed. This allows preparation and reduces surprise.
● Stable contract policies where possible. While sometimes temporary or short-term contracts are necessary, over-reliance on them fuels insecurity. Offering clearer paths from contract to permanent employment can help.
● Supporting alternative roles: when change is necessary, help staff transition to other roles rather than just abruptly moving them. Retraining, redeployment.
● Fair and transparent performance reports: decisions about retention, promotion or redundancy can be clearly linked to observable criteria and communicated properly.
● Building resilience in the organization: companies that invest in culture, wellbeing initiatives, mental health awareness and encourage peer support and buddy systems tend to cope better when uncertain times arrive.
What Employees Can Do (Even If Employers Are Slow To Act)
Although the main responsibility lies with organizations and managers, there are things individual workers can do to reduce the impact of insecurity:
● Ask for clarity where possible: ask about likely future plans, how long a contract is expected to run, what criteria are used for retention or restructuring.
● Build up skills and networks so you have options. This might include keeping your CV up to date, staying connected in professional communities and training.
● Practice stress management: mindfulness, exercise, sleep, talking to friends or a therapist.
● Reframe your mindset when possible: uncertainty is part of modern work but viewing it as a challenge rather than just a threat can sometimes shift emotional responses.
*All conversations with our team are strictly confidential.
PVD Psychological Associates specialize in college mental health, anxiety, depression, eating disorders, trauma, LGBTQIA+ issues, and relationship difficulties.
We also see clients for a range of other issues.
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