What role does self-esteem play between job insecurity and life satisfaction?

Abstract

Job insecurity is defined as the perceived threat of job loss and the related concerns which make employees' future unclear. It is evident that life satisfaction is lower among respondents who feel insecure about their jobs. There are many assumptions about what may be the main cause. Previous studies mention the significant role of self-esteem, one of the strongest predictors of life satisfaction, but there is still a question about the nature of it. The aim of this research is providing the answer whether self-esteem plays a mediating or moderating role between job insecurity and life satisfaction. The study included 383 employees in IT companies from Serbia (69% male), with an average age of 36, and six years of employment in average. The following questionnaires were administered: Satisfaction With Life Scale, Rosenberg Self-esteem Scale, Job Insecurity, and the list of demographic characteristics. As expected, regression analyses indicated that people with higher level of self-esteem have a higher level of life satisfaction (r= .47, p< .001), and that those more insecure about their job manifest lower level of life satisfaction (r= .24, p< .001). Multiple linear regression showed that self-esteem doesn’t play moderating role, while Sobel test analysis (STT= 3.19, p< .001) showed a significant mediating role of self-esteem in the relation between job insecurity and life satisfaction. One of the main implications is that HR psychologists should focus on improving a perception of job security for their employees so that it wouldn't affect employees' self-esteem, and indirectly their life satisfaction.