Effect of Job Insecurity on Employee Performance in the Nigerian Deposit Money Banks
The banking sector occupies a crucial position in any nation’s economy because it drives other sectors. Studies have revealed that the strength of the sector lies in the contribution and commitment of employees in the face of foreseeable job security. However, jobs in the banking sector in the last 30 years have become quite unsecured as a result of various banking reforms and economic downturn that characterised the nation’s economy. Previous studies on job insecurity as they affect employees’ performance remained inconclusive. Therefore, this study examined the effect of job insecurity on employees’ performance in Deposit Money Banks in Lagos State, Nigeria. The study employed a survey research design and a multi-stage sampling technique to select a sample of 623 employees from a total population of 24182 employees in 22 Deposit Money Banks in Lagos, Nigeria. Consequently a structured questionnaire was administered on the respondents while 520 were duly completed and returned representing 83.5% response rate. Both descriptive and inferential statistics were used to analyse collected data. Ordered Logistic Regression was used to determine the effects of Job Insecurity on employee’s performance in Deposit Money Banks in the studied area at 95% confidence level. The study showed job insecurity with contributed negatively to employees’ performance in Deposit Money Banks in Nigeria, that is, as job insecurity increased, employee performance decreased. The study concluded that job insecurity significantly affects employee’s performance in Deposit Money Banks in Lagos State, Nigeria. It was recommended that managements of the Deposit Money Banks should formulate and implement policies and practices that will enhance job security in order to ensure workers’ commitment, increase their performance and as well as reduce intention to quit.
Keywords: Job Insecurity. Job Performance, Banking Sector, Employee.