Title: An Analysis of the Effects of Job Security on Employee Retention: A Case Study of

Jemesin Medical Supplies Company

1.0 Introduction

Organizations are consistently concerned with retaining skilled and motivated employees. Job
security is a critical factor influencing an employee's decision to remain with their current
employer or seek opportunities elsewhere. In the healthcare industry, where retaining top talent
can be especially challenging, it is crucial to understand the impact of job security on employee
retention to maintain operational effectiveness and deliver high-quality care. This chapter
presents the study's background, which concludes by identifying the research gap being pursued.
The research objectives, questions, significance, assumptions, limitations, and delimitations are
also outlined.

1.1 Background of the study

As Rousseau (1989) suggested through the Social Exchange Theory, individuals tend to
participate in social interactions by adhering to the principle of reciprocity. They aim to increase
their benefits while minimizing their expenses. Within professional relationships, employees
offer their skills and efforts to the organization in exchange for various rewards, such as job
security, compensation, and acknowledgment. Job security holds a significant place in the
employment relationship, as it serves as one of the incentives that the employees receive for their
dedication and contributions, as discussed by Blau (1964)

The Psychological Contract Theory is a widely accepted concept that delves into the implicit
expectations and obligations shared between employees and employers. One of the major
components of this theory is job security, which is seen as a crucial factor in maintaining a
healthy psychological contract. Employees seek stability and security in their employment and,
in exchange, offer their unwavering commitment and contributions to the organization. Any
breach of this unspoken agreement, such as perceived violations of job security, can lead to
detrimental consequences like decreased trust, job dissatisfaction, and a desire to leave the
company. Rousseau (1989) sheds light on these phenomena.
According to the organizational support theory, employees form perceptions about the value their
organization places on their contributions and well-being Eisenberger et al (1986). Job security
measures are a tangible way for organizations to demonstrate commitment to their employees'
long-term employment and welfare. When employees feel that their organization supports them
in this way, they are more likely to reciprocate with greater commitment, engagement, and
loyalty Eisenberger et al (1986). Human capital theory posits that individuals invest in acquiring
and developing their skills, knowledge, and abilities to enhance their productivity and earning
potential, Becker (1964). Job security is considered a form of investment in human capital, as
employees are more likely to invest in skill development and long-term career planning when
they perceive their jobs as secure. In turn, organizations benefit from a more skilled and
committed workforce, leading to improved performance and competitiveness.

Jemesin Medical Supplies Company operates within the healthcare industry, a sector known for
its unique challenges in talent management and retention. With an ever-growing demand for
quality healthcare services and products, the company faces intense competition for skilled
professionals. The ability to retain talented employees is paramount for Jemesin to maintain
operational efficiency and meet the needs of its clients effectively. In recent years, Jemesin has
observed fluctuations in employee turnover rates, prompting the need for a closer examination of
factors influencing employee retention. Job security emerges as a significant consideration, given
its potential impact on employee perceptions, job satisfaction, and commitment to the
organization.

Research within the broader field of organizational behavior and human resource management
consistently highlights the importance of job security in influencing employee attitudes and
behaviors. Employees who feel secure in their jobs are more likely to exhibit higher levels of
engagement, productivity, and loyalty. Conversely, uncertainty about job stability can lead to
increased turnover intentions, decreased morale, and diminished organizational performance. In
the context of the healthcare industry, where the nature of work is inherently demanding and the
stakes are high in terms of patient care, job security takes on added significance. Healthcare
professionals require a sense of stability and confidence in their employment to perform their
roles effectively and sustainably.
Against this backdrop, the focus on job security and employee retention becomes imperative. Job
security, defined as the perceived stability of employment and the assurance that one's position is
secure within the organization, has been identified as a critical factor influencing employee
satisfaction and commitment. In the context of Jemesin Medical Supplies Company,
understanding the relationship between job security initiatives and employee retention is
essential for addressing turnover issues and fostering a stable and engaged workforce. Employee
retention is not only about reducing turnover but also about maintaining a workforce that is
highly skilled, motivated, and committed to the organization's mission and goals. High turnover
rates can disrupt team cohesion, impede knowledge transfer, and erode organizational culture.
Conversely, a stable workforce contributes to operational continuity, innovation, and long-term
success.

Through a thorough examination of the relationship between job security and employee retention
at Jemesin Medical Supplies Company, the study seeks to reveal valuable insights that can guide
strategic decision-making. By pinpointing effective job security measures and gaining a deeper
understanding of how they impact employee attitudes and behaviors, the organization can
implement tailored interventions to bolster retention efforts. Ultimately, this can result in greater
employee satisfaction, decreased turnover rates, and heightened organizational success.

Given these considerations, conducting a thorough investigation into the effects of job security
on employee retention at Jemesin Medical Supplies Company is essential. By understanding the
dynamics at play and identifying opportunities for improvement, the company can implement
targeted strategies to enhance job security measures and, consequently, bolster employee
retention efforts. The findings of this study will not only benefit Jemesin Medical Supplies
Company but also contribute to the broader body of knowledge on job security and employee
retention within the healthcare sector. Ultimately, the aim is to support organizations in
cultivating environments where employees feel valued, secure, and motivated to contribute to
organizational success.

Problem Statement:
Jemesin Medical Supplies Company, like other healthcare organizations, faces challenges related
to employee turnover that can disrupt operations, increase costs, and impact service quality.
Despite implementing various retention strategies, the company continues to experience
fluctuations in employee retention rates. A critical factor that affects employee turnover is job
security, which refers to employees' perceptions of the stability and assurance of their
employment within the organization. However, the effectiveness of current job security
initiatives in fostering employee retention at Jemesin is uncertain. Therefore, this study aims to
examine the impact of job security on employee retention at Jemesin Medical Supplies
Company, identifying factors that influence job security perceptions and exploring strategies to
enhance retention efforts.

1.2 Objectives of the study

• To assess Jemesin Medical Supplies Company's current job security measures, including
policies, procedures, and practices that ensure employee stability and confidence in their
employment.

• To measure employee perceptions of job security through surveys and interviews within
the organization and explore factors influencing these perceptions, such as communication,
leadership support, job stability, and opportunities for career advancement.

• To analyze turnover rates and retention trends within Jemesin Medical Supplies Company
over a specified period, comparing data before and after the implementation of job security
initiatives to assess their impact on employee retention.

• To explore the factors influencing employees' decisions to stay with the company or seek
employment elsewhere, considering job security, compensation, organizational culture, and
career development opportunities.

• To investigate potential strategies and interventions to improve job security and enhance
employee retention.

• To provide actionable recommendations to Jemesin Medical Supplies Company for

enhancing job security measures and improving employee retention rates.
1.3 Research questions

1. What are the current job security initiatives implemented by Jemesin Medical Supplies
Company, and how are they perceived by employees?

2. What are the factors influencing employees' perceptions of job security within Jemesin
Medical Supplies Company?

3. How have employee retention rates at Jemesin Medical Supplies Company changed over
a specified period, and what is the relationship between job security initiatives and retention rates

4. What are the key factors influencing employees' decisions to stay with Jemesin Medical
Supplies Company or seek employment elsewhere?