The massive lay off workers in public and private organizations in 80s and 90s led to the demand of job security in the United States. During recessions of 80s and 90s, the millions of workers to lose their jobs, those that did not lose their jobs got their wages reduced, and many workers were working for longer hours with less pay. Meanwhile, in 80s and 90s, there was massive difference between the wages of high paid workers, medium paid workers and low paid workers. There was also deterioration of wages in men and women. (Lawrence).
Moreover, the standard of living of most working class Americans were greatly reduced, including the standard of living of their family and most Americans were unable to cope with financial emergencies caused by stagnant in income and falling of wages. Furthermore, between the same years, there was sharp decline in the wages of Male-white collar job, the wages of managers and technical workers greatly reduced. Thus to reduce job insecurity among worker (Lawrence) and real hardship which the lost of employment brought onto the workers and their family, there was an agitation for job security.
In 1988, the congress passed law which mandated employer to notify worker in case of mass layoff. Additionally, in 90s certain states began to offer unemployment benefits to workers that their working hours were reduced. Additionally, there was an introduction of unemployment insurance; most states in the United States give insurance benefits to workers that their work hours have been cut due to certain circumstances. The U. S. policies on job security led some European countries to copy U. S style.
In Germany, government enacted employment protection laws that restricted companies to lay off workers. Additionally, government introduced short-term unemployment insurance system, and there was also subsidise for early retirement. The dismissal laws made it an offence to German companies to lay off workers. Moreover, government introduced the unemployment insurance for workers and there was also subsidise for the workers that retire early. (Katharine) In Holland, an employer can only lay off workers only with prior approval of director of regional of employment office.
In Sweden, the employer must inform the employee before he can terminate his job appointment. In United States and Europe in general, there is now job protection for employees and there are various laws that protect the rights of employees. Because of the laws protecting the workers, the employers cannot just layoff workers for unjust reasons. (Alan, Hoyt) The law protecting the employees from unjust lay off has led to organizational success of most business organizations in USA and European countries as a whole.
For example, there are employment growth in EU and US. More so, there is high increase in management performances and increase in job quality and workers now feel that they are part of organizational success. The success of all organization depends on the quality of workers. The performance of employees improves if Reinforcement theory is applicable to job environment. The workers should be motivated or be reinforced in the working environment. The reinforcement theory means, people do things because they know other things will follow.
Thus, depending upon the type of consequence that follows, people will produce some behaviors and avoid other. Thus, the organization must motivate worker by applying employment recognition in the working environment because every employee needs to be praised and be recognised for the good work he has done. The only way to recognise and praise worker is to increase the pay packet of the worker to induce the worker in putting more effort in his work. More so, this will make the employees to feel that his job with the organization is secure.
Additionally, government should review law protecting the job security of the worker; the employee who is of very good performances for certain numbers should not be sack for lesser offence. Another reinforcement method the organization can use to motivate worker is by implementing the Skill based pay plans. In United States, Some organizations have experienced difficulty retaining skilled employees because the employees feel that they were not paid according to their skills.
Thus to promote the job security of the skilled employees, the salary system of the business organization should be linked to the number or depth of skills an employee acquires. Skill based plan is a way of developing broader and deeper skills between the workforce and the pay increases are usually tied to the types of skills workers acquire. The employees must be rewarded with according to the number of skills the employee acquires. If both the private and public organizations can apply this method in dealing with workers, the workers will be motivated to acquire more skills and thereby improving their job security.