Job insecurity causes stress
Taking into consideration the continued rise in the cost of living, house prices, and budget changes, more than ever employees want to feel that their jobs are secure with a steady income to support them and their families.The era of downsizing and re-engineering in all around the globe has done more than make corporations "leaner and meaner"; it is literally making employees sick. Surprisingly, the effect is worse than actually losing your job, the research suggests.
Based on how participants rated their own physical and mental health, Burgard (2009), a sociologist at the University of Michigan, found that people who were persistently concerned about losing their jobs reported significantly worse overall health in both studies and were more depressed in one of the studies than those who had actually lost and regained their jobs recently. She also highlights the fact that chronic job insecurity was a stronger predictor of poor health than either smoking or hypertension in one of the groups.
It's important that all times the major decisions which affect the company's direction or fate should be communicated before the rumors cause panic. HR should intervene and prevent miscommunication to avoid employees loosing faith in the organization completely and be a demotivating factor for others.