I recently read an interesting article by Hamish McCrae in The Independent newspaper which discussed the growing chasm between the public and private sectors. The author claims that it is now at its widest since the 1970s – jobs are being lost daily in the private sector (e.g. Total, LDV Vans, C&G), while we have seen strikes and pay disputes rather than redundancies in the public sector.
The key point was that a major divide between the sectors can hardly be good for the UK’s economic recovery. ‘Resources and productivity’ are cited as two key areas of difference, but three others are also highlighted – pensions, pay and job security. In terms of both pay and pensions the private sector has been hit harder but, as demonstrated by the examples above, it is job security that is perhaps the area where we see the biggest differences between the two sectors. This caught my attention because of the likely impact on the well-being and engagement of staff.
Hamish McCrae makes the point ‘the entire burden of recession in terms of job losses has been carried by the private sector’. In principle, creating and safeguarding public sector jobs during an economic crisis seems sensible (it’s certainly Obama’s chosen approach to recovery), but if this is at the expense of the sector where the vast majority of UK workers earn a living (23,596,000 vs. 5,783,000 in the public sector) the recovery of the whole economy may be at risk.
From a psychological perspective, perceiving that your job is secure is one of the nine major determinants of employee well-being and engagement. It stands to reason that if the majority of the UK’s workers feel that the security of their jobs is under threat, there will be a negative impact on their well-being, and by extension, their productivity & performance. The government has had to make tough choices over the last 18 months, but this may be just one of several unfortunate and unintentionally divisive side-effects. It’s true to say that the government can’t be expected to ensure that we all feel secure in our jobs the whole of the time, but they do create the economic playing field for business and have a responsibility for keeping it relatively level. That said, private sector organisations also have to take responsibility for keeping well-being and motivation levels up during these uncertain times – looking after those that remain after redundancies.
Of course, this could all switch around if the private sector starts to recover and public sector budgets are slashed in order to recover the money that was required to stem the financial crisis. Perceptions of job security could swing from one extreme to another in both sectors, and that would hardly bode well for creating a stable new economy characterised by productive and trusting relationships between the sectors. This situation may need to be actively managed as the next 18 months unfold.
Posted by Cary Cooper 
