Job Security

Published by MBA Skool Team, Last Updated: May 27, 2020

What is Job Security?

Job Security is the presumption or confidence of an employee that he will not loose his current job he is holding to. High level job security indicates that the employees will not loose their jobs in the near future. Job security is more of a perception; it is intangible thing which we can not look at but we feel it.


Job security will be different in different professions and industries. This factor affects employees’ performance in a company. The employee with low job security always feels under threat regarding his job and the employee could not work to his full potential. Often then threat faced by such employees will also be transferred to other employees in the company. This will lead to a low productivity of the employees. Hence employees’ perception about how secure their employment is very important for performance of the company.


The perceived job security depends on many factors, some of the main factors are individual's performance, current economic situation, the performance of the company in which the employee is working, the importance of his skills to the employer etc. The employees with low performance and with no differentiating skills can be replaced by others at any point of time, since many others are available who could do the same job, hence more job insecurity. Job security would be high in the public sectors than in the private sectors, and would be very low in the service sectors as the economic situations are unpredictable and continuously changing. At any point of time an employee can increase his position in the company by his performance, his contribution to the company and his differentiating skills.


This article has been researched & authored by the Business Concepts Team. It has been reviewed & published by the MBA Skool Team. The content on MBA Skool has been created for educational & academic purpose only.

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