Effect of job insecurity on frontline employee’s performance

Abstract

Purpose The aim of this paper is to extend the knowledge of the link between job insecurity and job performance by exploring potential mediating mechanism of psychological strains and moderation role of psychological advantages on the mentioned relationship in the hospitality industry. Design/methodology/approach A sample of 288 frontline employees from five and four star hotels in north Cyprus was selected through judgmental sampling. Structural equation modeling was used to investigate the research model, and hierarchal multiple regression was used to test forwarded hypotheses. Findings The results showed that Job Insecurity mitigates Job Performance. The results further suggested that anxiety, as a psychological strain, mediates the effect of job insecurity on job performance. Additionally, psychological advantages (supervisor support and intrinsic motivation) play a crucial role as a delimiter against the negative effect of job insecurity on job performance. Research limitations/implications Hotel managers need to establish and communicate transparent human resource polices including, win-win-based employee contracts, fair selection, placement, appraisal, compensation, reward and similar human resource systems within hotels. Empowering and developing relations skills between supervisors and employees by providing continued training programs are vital for minimizing organizational stress and anxiety from job insecurity. Keeping in mind high employee turnover rates in the industry and its considerable costs, especially intrinsically motivated employees willing to work long hours should be selected in those organizations. Additionally, buddy-buddy approach in mentoring can be used by well-selected senior employees to help new employees socialize, improve their performance via social support and retain them in the end. By implication, lacking time lag is considered as the limitation. Originality/value Empirical research relating to the psychological strains and leverages of job insecurity is sparse in the hospitality industry. Based on job demand-resource and conservation of resource theories, the present research aimed to fill this gap.