Job Security Rule Changes and Employee Organizational Commitment

Abstract

This study assesses the impact of different job security rules on federal employees’ organizational commitment by looking at the effects of changes in the Department of Homeland Security (DHS) precipitated by MaxHR, introduced to DHS in 2005. The 2005 job security rule changes, as part of the “reformed” personnel system of the new DHS, reduced employee job security, which in turn weakened organizational commitment. The study found subsequent repeal of the job security rules in 2007 boosted organizational commitment among DHS workers by as much as 10 percentage points. Taken together, the results of difference-in-differences (DID) analysis for the new job security rules in the period 2005-2006 and subsequent repeal of the job security rules in the period 2007-2010 suggest that employees’ commitment to DHS was more favorable after the repeal of the job security rules than prior to the 2005 reforms.