Downsizing Policy: Job Insecurity Makes Non-medical Employee’s Work Engagement to Decrease

Abstract

This paper arranged based on the downsizing issues, due to the implementation of new regulation at public health services. There are at least two problems i.e. the employee felt insecure in carrying out their job and the decreased performance. The research had been conducted in non-medical employees at a private hospital in Jakarta. The research was done toward 175 employees in total as the respondents. The data had been collected using job insecurity scale and work engagement scale. The data analysis was tested to see the causal relationship that occurred between job insecurity and work engagement. The results of the test showed that job insecurity had a role in reducing the level of work engagement. It indicated that an increased insecurity made the employee’s work engagement to decline. Another result of the test showed that job insecurity and work engagement had a negative interaction. Nevertheless, a conditions of high job insecurity gave an effect to decrease work engagement. Based on this condition, it is considered that employees significantly do not give benefits to the company. Despite being in uncertain regulation, downsizing is not expected to be the only solution. Therefore, the need for advanced empirical studies to explore the role of organizational climate and innovation culture may help the management to take the proactive steps.