On the reciprocal relationship between job insecurity and employee well-being: Mediation by perceived control?

This study aims to explain the reciprocal relationship between job insecurity and employee well-being (i.e., emotional exhaustion and vigour) by perceived control. Building on appraisal theory and conservation of resources theory, we suggest that perceived control mediates the cross-lagged relationships from job insecurity to employee well-being, and from employee well-being to job insecurity. These hypotheses were tested using repeated-measures data (two waves) from 536 Flemish employees from different organizations and sectors. First, cross-lagged structural equation modelling analyses showed an effect from job insecurity to perceived control, and from perceived control to emotional exhaustion, so that perceived control (partially) mediated the positive cross-lagged relationship from job insecurity to emotional exhaustion. Second, we established a cross-lagged effect from emotional exhaustion to perceived control, although not from perceived control to job insecurity. Third, no cross-lagged paths were found between perceived control and vigour. This study contributes to both appraisal theory and conservation of resources theory by investigating reciprocal relationships that fit the transactional conceptualization of stress within both frameworks. Furthermore, the results of this study highlight perceived control as the process through which the stressor job insecurity impacts on employee well-being.