Perceived Post-restructuring Job Insecurity: The Impact of Employees' Trust in one's Employer and Perceived Employability

Abstract

The aim of this study is to investigate whether trust in one's employer and also perceived employability are able to reduce employees' perceived post-restructuring job insecurity. Both, quantitative job insecurity (insecurity over the continuity of a job) and qualitative job insecurity (insecurity over the continuity of valued aspects of the job) are examined. Based on Lazarus' theory of stress, we predict that employees' trust in their employer, perceived levels of employability and the combination effect impacts employees' perceived post-restructuring quantitative and qualitative job insecurity. Results taken from a sample of 377 employees working in Switzerland who survived restructuring mostly support these hypotheses. In general, employees with a high level of trust in their employer and high level of perceived employability show lower post-restructuring quantitative and qualitative job insecurity. Moreover, results suggest a potentially important role for the multiplicative effects of trust in one's employer and perceived employability regarding the perception of qualitative job insecurity. Implications for both research and practice are discussed.