When Job Insecurity Undermines Performance: The Calming Role of Religious Faith

What is it about?

This study examines how job insecurity—employees’ fear of losing their jobs—reduces their ability to complete work tasks on time, and why some employees are more resilient to this effect. Drawing on Conservation of Resources (COR) theory, the authors propose that job insecurity triggers beliefs about work-induced mental health deprivation, meaning employees feel that their employer is harming their psychological well-being. These feelings, in turn, erode motivation and focus, leading to poorer task performance. Using three-wave survey data from employees and supervisors in Pakistan’s banking sector, the findings reveal that mental health deprivation beliefs mediate the relationship between job insecurity and timely task completion. When employees perceive their jobs as unstable, they often feel that their work is undermining their mental health, making it harder to stay engaged and productive. However, this harmful pattern weakens among employees with strong religious faith. Faith provides emotional comfort, meaning, and hope, allowing individuals to maintain balance and commitment even under uncertainty. For human resource managers, the study highlights that fears about job loss can not only harm well-being but also directly affect performance. Organizations can help by promoting psychological safety, providing transparent communication about job expectations, and recognizing the positive coping role of faith-based values that enable employees to remain composed and effective despite insecurity.

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Photo by Madrosah Sunnah on Unsplash

Photo by Madrosah Sunnah on Unsplash

Why is it important?

This research is unique in identifying work-induced mental health deprivation as the psychological bridge through which job insecurity undermines task performance, while showing that religious faith serves as a valuable personal resource that buffers this effect. It advances COR theory by integrating faith-based resilience into the understanding of how employees manage resource loss in the workplace. Conducted in Pakistan, where religious belief plays a central role in employees’ lives and workplaces, this study is particularly timely as organizations worldwide face economic uncertainty and restructuring. It suggests that supporting employees’ spiritual and emotional resilience can help maintain both mental well-being and consistent performance, even amid instability.