Their concerns can undermine productivity, innovation and retention, leading to significant business costs. Employers can safeguard business performance and employee wellbeing by implementing the following strategies to mitigate job insecurity.

Foster a culture of open communication

Clearly communicate business strategies, challenges and changes to keep your employees informed and reduce anxiety driven by speculation.

Check in regularly with your teams and create dedicated channels where employees can voice concerns. Also reinforce their value to the organisation by recognising and appreciating their contributions.

Harness psychological safety

Ensure that your employees feel safe to share their concerns without fear of negative repercussions. You can achieve this by inviting input on business strategies, acknowledging feedback, and then explaining your decision-making processes.

It’s also a good idea to train your managers to actively listen to their employees and engage with their concerns. It’s important to avoid being dismissive.

Align work assignments according to employee strengths

When reassigning work due to restructuring, consider your employees’ skills, strengths, interests and career goals to help maintain engagement. If some employees have higher workloads, redelegate tasks to those who aren’t as busy. Even temporary delegation can help reduce anxiety around job security.

Where possible, provide opportunities for employees to upskill or pivot within the organisation.

Offer support programmes to your team

You can support employees by providing access to Employee Assistance Programmes (EAPs), career coaching or financial wellness resources. Also encourage your leaders, where possible, to have one-on-one career development discussions with employees to show commitment to their growth.

Monitor employee wellbeing and workplace safety

Job insecurity can increase stress-related health issues and workplace safety incidents. Establish mechanisms for your employees to report their concerns without fear of retaliation, ensuring compliance with health and safety regulations.

Why this matters for your business

It’s logical to expect that job insecurity will motivate employees to work harder, perform better and stand out in an effort to safeguard their roles. However, research has indicated the opposite.  Employees who face job uncertainty often experience reduced performance, increased absenteeism and higher turnover due to perceived powerlessness and lack of control, which decreases motivation.

Other studies report that job insecurity leads to knowledge hoarding, stifled innovation, and disengagement, which are important factors given businesses rely on remaining employees to step up during transitions.

Job insecurity also correlates with under-reporting of safety incidents, exposing organisations and those who oversee safety to legal and financial risks.

Job insecurity heightened by AI and automation

Even as recessionary pressures ease, job insecurity is expected to persist due to technological disruptions such as AI and automation. Leaders who proactively address these challenges are more likely to build more resilient, high-performing teams.

By implementing these strategies, businesses can support employees through uncertainty and also drive long-term engagement, retention and organisational success.

For more tips that enable your people and workplace to thrive, contact our HR workplace leadership specialists in Auckland, Tauranga, Taranaki and Hawke’s Bay.