Job insecurity and job satisfaction

Abstract

Purpose – The purpose of this paper is to examine optimism and how facets of subordinates’ psychological characteristics, such as their attitudes and personalities, are similar to their direct supervisors’ (as person-supervisor deep-level similarity or P-S deep-level similarity) in order to understand their interactions with job insecurity in predicting employee job satisfaction. Design/methodology/approach – Empirical study had been conducted. Sample firms in this study consist of eight state-run electric power companies and 16 licensed chemical companies in central Hubei Province in China. In total, 368 valid samples were included in the analyses (with a valid return rate of 73 percent). All constructs were rated on a five-point Likert-type response scale. In order to diminish the possibility of common method biases, the authors used participants’ dyad supervisors to rate P-S deep-level similarity and P-S guanxi. The authors tested the hypotheses by implementing hierarchical linear regression. Findings – The results show that when certain demographic variables (e.g. age, gender, education, post, employment type, income proportion, position) and P-S guanxi are controlled, optimism and P-S deep-level similarity significantly interact with job insecurity to predict job satisfaction. Job satisfaction is bolstered when job security increases among those who report a high level of both optimism and P-S deep-level similarity. Originality/value – Researchers have found that job insecurity has negative effects on job satisfaction (Sverke et al., 2002). But there is a lack of understanding about the mechanism of how job insecurity affects job satisfaction. In this study, the authors found that optimism and P-S deep level similarity could jointly moderate the relation (and direction) between job insecurity and job satisfaction. The work illustrates how positive traits (such as optimism) and psychological factors (such as P-S deep-level similarity) could affect employee job satisfaction with different levels of job insecurity.