Influence of Employee Redundancy on Perceived Job Security Among Outsourced Employees of Essential Management Consultancy Services Limited

Abstract

Contracted employees have a perceived job security, which is heightened at the start of the employment contract and becomes diminished towards the end of the employment contract. The diminishing job security is occasioned by uncertainty as to whether the contracts will be renewed or not, implying a redundancy when they are not. A contract job offers limited commitment which creates a situation of uncertainty in employee minds (Muhamma, Muhammad, & Tariq,2011). This raised the question how does Employee Redundancy Affect Perceived Job Security among outsourced employees? The unit of study was Essential Management Consultancy Services Limited(EMCSL), a Human Resources Management firm, engaged in the supply and management of contracted labour to various client firms across Kenya on fixed contract terms. The accessible population for the study was 217 individuals. 217 questionnaires were distributed and 155 were filled and used for analysis. This was a response rate of 71%. The respondents generally agreed that they get very much affected when the organization announces a redundancy (mean =4.11, standard deviation=1.289, coefficient of variation of 0.32); and they get affected negatively when the organization announces redundancy (mean=4.11,standard deviation=1.412, coefficient of variation=0.34). The grand mean for employee redundancy was 2.95. The results of the respondents regarding job security indicate that the respondents scores regarding job security in the organization was (mean =2.68, standard deviation=1.385, coefficient of variation of 0.52). The grand mean for job security was 3.14. From the findings, the respondents reported the influence of employee redundancy on job security was found to be significant (F=21.289, p < 0.05). Following the study on the influence of redundancy on perceived job security amongst outsourced employees of EMCSL, the following recommendations can be made in relation to the management of redundancy exercises and the management of employee job security: When the organization announces redundancies, findings indicated employees experienced negative feelings. There was disaffection in the organization as to the provision of support services during redundancies, i.e. counseling support services. EMCSL should provide counseling support services for employees that are affected both directly and indirectly by the decision to make them redundant. This intervention will go to easing disaffection caused by the redundancy exercise. Employees had no trust in the organization to carry out redundancy in a manner that is free and fair from bias. EMCSL should take measures to build trust and loyalty in their workforce. Such measures can include regular town hall meetings with employees to hear employee grievances and to also put in mechanisms that allow for workers to express themselves freely, such as having suggestion boxes and embracing an open door policy that encourages employees to talk freely with site supervisors and managers. Employees felt that they will be unable to find other work following a redundancy. EMCSL should training to aggrieved employees such that they will be equipped with new skills that will empower them will skills to transition on to new employers or even open new businesses. Such learning could include digital learning or literacy and entrepreneurship skills. Employees felt that there is no job security in the organization. EMCSL should employ practices that promote employee job security such as having honest, clear, and concise goal setting during performance management, so that employees are clear on their expectations as to what is required to achieve organizational goals and objectives