"Don’t blame it on the sunshine, the moonlight, or on good times." Instead, the late Michael Jackson urged: “blame it on the boogie”.
When it comes to unethical behavior at work the song should go;
“Don’t blame it on the employee, blame it on job insecurity.”
Growing evidence suggests job insecurity can be an important driver of unethical employee behavior. Corporate scandals of the previous decades triggered much new research. Yet the big question remains: why do people behave in unethical ways in business?
A new study in the latest Business Ethical Quarterly suggests it may all come down to two factors. First, does the employee feel “embedded” in their job? Second, what is their degree of personal adaptability?
Embedded individuals feel well-connected to their company. This strong attachment though increases the chances they will suffer from emotional exhaustion. This may stem from pressure to perform, hard to reach goals, and a desire to show loyalty at almost any cost. People who suffer from emotional exhaustion are less able to handle ethical challenges.
In contrast, adaptable employees are more likely to view job insecurity as a potential opportunity. For example, to find a new job, or start their own venture. They’re less likely to suffer from emotional exhaustion and more likely to avoid unethical practices.
This well-researched study tries to unravel how job insecurity saps people’s ability to make good ethical decisions. Beyond this study, real life examples seem to support this conclusion.
For example, Wells Fargo staff were under serious pressure to meet sales goals every day. There was an industry culture of pressure and fear—generating emotional exhaustion. This helped drive low-wage employees to become willing to rip off customers.
Low bank wages were also an incentive to behave in unethical ways. People didn’t fear being fired for overzealous selling. Instead, they worried about losing their job for not meeting sales targets.
Wells Fargo staff concluded it was more important to sell than treat the bank’s customers well. Uncertainty in Wells Fargo and the need to preserve jobs, drained employees’ emotional reserves. It undermined their natural tendency to be ethical and adapt. Instead, some 5000 staff responded to the management pressure by resorting to mass unethical behavior.
Implications
Employees in many companies suffer from job insecurity. According to an ILO report, around three out four of the world’s workers live in economic insecurity. Job security has fallen even in the industrialised European countries, and Canada.
For example, more than 3,000 workers aged between 20 and 60 were interviewed in 2012 for the UK Skills and Employment survey. It revealed increased insecurity and fear among all types of employees, with those in the public sector as worried about work as those in the private sector.
Job security varies widely across nations – see table. Concern with security and benefits matter to employees. For example, while most want job security, more than half (65%) feel their current job already has it.
Best practice insight and technology company CEB found 43% of workers are unhappy with the stability their employers and jobs provide. The result was a drop in employee satisfaction or engagement. This may create emotional exhaustion which contributes to corruption levels; and lack of concern about unethical behavior.
Among the known causes of job insecurity are:
More flexible employment and short term contracts
Globalisation–less down-sizing, outsourcing
Reduced regulation of the labor market
Retreat on unemployment benefits
Growth of personal debt
Weakening of trade unions
We also need to know far more about the health consequences of these trends and how to alter them.