• Job security is also an important variable that directly affects

employee organizational satisfaction and level of his commitment. If

an employee is sure that he will not be kicked out of the organization
any time sooner then he will definitely work harder. In fact, he will try
to reciprocate by giving more input to the organization and it will also
increase the level of his satisfaction [6]. Employees can work properly
only if they are committed, loyal and sincere towards the organization
and this is only possible if they are satisfied with the organization, its
decisions, their salary packages and other similar factors.
• There is a strong need to study this framework in Pakistan as there is
very less research being done on this topic. Pakistan is a developing
country; there is a strong need to study different factors that affect
employee and organizational performance so that business owners
and top management can incorporate these factors in their
operations for successful management of human resource.
• Every employee compares this input with the rewards he get as an
output from the organization and if he finds out that he is getting less
for his hard work, then he will eventually start to feel that the
organization is not fair to him.
• Employees want financial security from their organization and if an organization fails to provide
this then it can lose its human resource. The majority of the business corporations these days
are giving employee‟s part in the shares. This is just one way of increasing job satisfaction and
job security. The National Center for employees in 2002 reported that more than 8.8 million
employees were a part of equity based compensation plans (EBCPs) which clearly proofs that
organizations are giving extra attention to compensation and rewards for its employees in order
to increase their job satisfaction. Giving rewards and incentives in the form of providing share
in stock, or offering compensation plans, especially in the middle and senior management also
resolve a lot of principal-agent issues as employees start to work with loyalty [23]. According to
the current literature, the best way to increase motivation and job satisfaction among
employees, including top management is to determine the salary and wage rate solely on the
basis of long term productivity of the organization [24]-[26]. This in other word means that
those managers should be laid off who fail to give output in the long run [27]. Rewards and
compensation has known to have a positive impact not only on employee satisfaction, but also
on organizational performance [28].
• Every employee is useful for the organization in one way or the other
so it is very necessary to keep employees motivated and satisfied so
that they can perform their best [7]. When you provide job security
and ensure organizational justice, then the employees automatically
start to show a positive attitude and this positive attitude is very
crucial to the organization, especially if it is dealing in service industry
as service industry is all about a good attitude and behavior with the
customers [33].
• It is the human force of any organization that determines its long term
success in terms of profitability, income and similar factors but the
question arises how to achieve employee satisfaction. Job security
and organizational justice are two main factors that increase
organizational satisfaction among employees as a result of which
organizational productivity increases
• It is very important for the organization to ensure employee job
satisfaction as the cost of hiring a new employee is very high and no
organization has enough resources and time to hire a new employee
every now and then [43]. Lack of employee job satisfaction can cause
serious trouble for the organization as it not only adds recruitment
cost, but it affects the growth of the organization in the long run [44].
Job satisfaction comes from different factors, some of which include
pleasant work environment, friendly management, good salary
package, job security, organizational justice and career opportunities
[45].
• Studies indicate that employees feel satisfied with their job only when
their organization is providing them financial security which can be in
the form of good salary packages or job security [
• Employees are a true asset for any organization and every
organization wants to get maximum benefit from its resources.
Employees can only perform well if they are satisfied with the
organization and this happens if there is job security and
organizational justice. This study tries to explore the relationship
between organizational justice, job security and organizational
productivity in relatively a different manner as a mediator named job
satisfaction is added into the relationship
• If employees feel that they have facility of job security along with the
increased level of job satisfaction than automatically they will show
more commitment to the organization and at the end organizational
productivity will be increased
• SAN DIEGO—For the fourth year in a row, employees ranked job security and
benefits as the top two “very important” contributors to job satisfaction over other
factors such as career development, flexibility and compensation, according to
the 2010 Employee Job Satisfaction survey report released June 27 by the Society
for Human Resource Management (SHRM) at its Annual Conference here.
• HR professionals agreed on the importance of job security, ranking it second.
However, for the last seven out of eight job satisfaction surveys fielded by
SHRM, HR professionals have viewed an employee’s relationship with his or her
immediate supervisor as the top contributor to employee satisfaction, selected by
72 percent of respondents for 2010. By comparison, less than half (48 percent) of
employee respondents felt that such a relationship was very important, ranking it
seventh.
• One aspect that the HR department tries to deal with is job
security. To guarantee job security, many employees know
that they need to show commitment to the company and
their job duties. The HR management comes in to put
measures in place that ensure that staffing levels
correspond to the company’s needs and that, in the process,
assure employees of their long-term positions within the
organization. The firm demonstrates its long-term
commitment to the workers by providing regular training,
performance evaluations, and goal-setting activities.
• The concept of job security started gaining popularity in
the recent times as a result of economic pressures on
organizations. This could be the reason why 
Adebayo and Lucky (2012) agreed that job security has
become indispensable in employee and organization
• Globally, about 75% of the employees preferred to keep
their jobs compared to other factors in their preference
list (Towers Watson, 2010). This indicates that job
security is as important as the employees’ salary and
healthcare
• Job security: Job security is defined as the assurance
in an employee’s job continuity due to the general
economic conditions in the country (James, 2012). It is
concerned with the possibility or probability of an
individual keeping his/her job (
Adebayo and Lucky, 2012). It deals with the chances of
employees keeping their jobs in order not be
unemployed (Simon, 2011). Jobs which are not backed
by indefinite contract or cannot be guaranteed for
reasonable period are deemed to lack job security.
• Job security is an employee's assurance or confidence
that they will keep their current job for a longer period
as they so wish (businessdictionary.com). It is the
assurance from the company or organization that their
employees will remain with them for a reasonable
period of time without being wrongly dismissed
• Generally, certain type of jobs and industry jobs has
been perceived to have high job security. For instance,
government jobs, educational jobs, healthcare jobs and
law enforcement jobs are deemed to be very secure
while on the other hand, jobs in the private sector are
widely perceived to offer lower job security which may
also be according to industry, location, occupation and
other factors
• In the USA for example, it was reported that national
job security depended greatly on the economic and
business conditions due to the capitalist system that
encourages and promotes entrepreneurship
development and minimal government intervention in
businesses
• in Britain, job security is found to be very low because
many companies believed that it is much cheaper to fire
permanent employees since employees are only entitled
to a legal minimum of one week's redundancy pay per
year worked 
• However, in some other European countries many
employees have indefinite contracts which, whilst not
guaranteeing a job for life, make it very difficult for the
employer to terminate an employee’s employment (
Adebayo and Lucky, 2012).
• A recent survey conducted by KPMG (2010) on job
security found that more than 75% of participants
considered job security their top priority when searching
for a job as a result of the uncertain economic
environment. While the result also showed that 67% of
the participants were likely to work in a public or non-
profit organization than a corporate business due to the
recession. Accordingly, the study conducted by the
University of Michigan's Center for the 
Center for the Education of Women (2010) found that
teachers such as professors desire greater job security.
• According to Geoffrey James, job security has a
significant effect on the overall performance of the team
as well as on the organization's performance (
James, 2012). He noted that organizational with
workers with low job security cause people to lose faith
in their future which consequently affect performance
• For instance, a low job security is possible in a situation
where a particular employees' ethic group seems to
dominate other ethnic groups in some organizations or
industries (Bumi,2011; Hassan, 2010). In this case, the
minority employees in that company will feel low job
security and therefore may not be able to perform
effectively. For example, a Chinese owned company may
be dominated by more Chinese employees other than
other ethnic groups (Bumi, 2011; Hassan, 2010) thereby
causing fear of losing their jobs to other minority
employee ethic groups in the company and vice versa.
• It was observed that the economic pressure has pushed job security to the top
priority list of the employees, making it a significant and crucial factor to be
considered by the employees when making decision about the organization
they want to work with. The multiethnic composition of an organization also
can have a strong impact on job security. Despite the inconsistent result of the
previous studies, it is argued here that job security has a significant effect on
the overall performance of a team as well as on the organizational
performance. We further argued that the more an employee enjoys a high job
security the more he is likely to effectively perform his task which is reflected
in the overall performance of the organization. It is hoped that the arguments
presented in this paper will be of immense benefit to the owner-managers,
practitioners, organizations and researchers. Finally, it is suggested that
further investigation on other directions of job security should be investigated
in order to help build this area of research.