Recent data shows that job security in the UK is becoming increasingly rare, with female, ethnic minority, and disabled people most likely to experience insecure work. In this article, we consider the statistics on current job insecurity and the potential impact on both employers and employees.
We also discuss the importance of employers and employees working together to achieve greater job security in the UK going forward.
Job Security in the UK: 6.8 Million People Experience Severe Insecurity
Since the end of the Great Resignation, job security is becoming increasingly valued. However, unfortunately, it is not as prevalent as might be hoped. According to the UK Insecure Work Index 2024, 6.8 million people in the UK experienced severe job insecurity in 2023. This is a shocking 21.4% of the UK workforce and an increase of 600,000 people since 2022.
Read: After The Great Resignation Comes “The Big Stay”: How to Retain Employees in 2024
The report further revealed that women are 2.3 times more likely to experience severe job insecurity than men. Moreover, of those with a disability, 28% are in severely insecure work compared with only 20% of those without a disability. Sectors most affected include wholesale and retail, professional and scientific, and hospitality.
Mixed Bag of Factors Contribute to Job Insecurity
The Work Foundation, which produced the report, has identified three main types of job insecurity:
- Those with involuntary part-time, temporary, or zero-hours contracts are contractually insecure.
- Some have specific insecurities; For example, those receiving low pay are financially insecure. Similarly, those who enjoy fewer rights due to their employment status have rights-related insecurity.
- People experiencing two or more of the above factors typically have severe job insecurity.
Multiple factors have played a role in creating job insecurity since the Great Resignation. The uncertainty generated by economic downturn and political unrest frequently leads to more redundancies and fewer hiring staff. The cost-of-living crisis has also led to people having to work more than one job, resulting in instability.
Like what you're reading? Don't forget to subscribe to our bi-weekly newsletter!
Moreover, technological advancements have resulted in many formerly secure roles being replaced with various forms of artificial intelligence, causing yet more job losses. Hence, as global outsourcing increases, job security is affected.
Those previously employed in these roles often find themselves without work. Whereas, others opt for working remotely, sometimes in addition to their existing job, to meet the demands.
The Impact of No Job Security
Job insecurity has a significant impact on both employers and employees. The key similarity between the two is that it is almost always negative. Whilst the concept of “absolute job security” is practically non-existent these days, increasing job security in the UK is still a mutually desirable circumstance.
Employee Job Security Directly Impacts Their Quality of Life Overall
For employees, “job security” is often synonymous with “financial stability”. In other words, those with secure jobs are more likely to be able to meet their monthly outgoings, save for future expenses, and feel comfortable with the state of their finances. This, in turn, has a positive impact on overall wellbeing. Financial instability generally means more stress and a worse quality of life overall.
Employees with good job security typically feel more valued by their employers. They are also able to devote more time and energy to the job in question without the constant worry of it being taken away. This increased engagement leads to higher levels of productivity and better job satisfaction. Job insecurity, on the other hand, generally results in feelings of ill-usage, detachment, and discontent.
Having a secure job also impacts professional and personal development as secure employees are more likely to invest in development. This might include challenging themselves to grow and progress by learning new skills and/or taking on more difficult projects. Conversely, those with no job insecurity will typically invest the bare minimum.
On a personal level, secure employees are likely to feel more confident in planning for the future. Setting long-term goals, making investments, and pursuing further training or education will result in a greater sense of achievement and self-worth. Those with low job security are likely to be focusing on mortgage payments or making ends meet.
Employee Job Security Could Lead to Higher Turnovers
The main practical effect of job insecurity for employers is the risk of losing their staff and the resultant need for hiring employees. According to research, job insecurity is strongly suggested as one of the top reasons for employee turnover in the UK. This consequently has a significant knock-on effect on the business as a whole.
Greater job security often results in better employee engagement and, consequently, increased employee retention. Having to hire constantly is likely to result in deteriorating productivity and team cohesion. Additionally, there will be increased costs associated with the recruitment process.
Read: Employee Financial Wellbeing a Concern as
UK Workers May Not Be Able to Afford Retirement
Job security generates positive perceptions of an employer. Secure employees make for a healthy workplace culture, which in itself encourages employee retention. On the flip side, poor job security could negatively impact the employer’s workplace culture and image, potentially repelling both present and future staff.
The Importance of Collaboration to Eliminate Job Insecurity
Just as job security in the UK impacts both employers and employees equally, so is each responsible for promoting and implementing it. Whilst employers have more control over the level of job security they offer when hiring staff, employees can do their bit by proving themselves keen to commit to a role.
- The first step to promoting job security in the UK should be taken during the recruitment process. When hiring employees, employers should always consider the terms on which they are willing to engage them. Offering permanent contracts with set hours will ensure greater job security than zero-hour or temporary contracts. Employees, for their part, should not be afraid to address this issue during the recruitment process.
- For employers, providing regular feedback and appraisals to existing staff can help achieve greater job security. Employees generally appreciate knowing where they stand and understanding what is expected of them. This will, in turn, build a relationship of trust and stability between employer and employee and help employees feel more secure in their roles, including when working remotely.
- Investing in employees is another way for employers to achieve job security. Providing training and coaching to employees, to develop not just in their roles but in their careers overall, will make them feel secure within the business. Underappreciation and job dissatisfaction are the top reasons for employee turnover. So, preventing such notions will increase the likelihood of employee retention.
- From an employee perspective, it is important to integrate into the business. Making oneself as useful and productive as possible is key to ensuring job security, as you’re adding value. This includes working effectively within a team, being respectful and adaptable, and communicating well on all levels. Showing an eagerness to develop and initiative to take responsibility for tasks will also help.