Privatization-Induced Job Insecurity and Its Multilevel Consequences: A Qualitative Study of Psychological, Performance, Health, and Social Outcomes in Pakistan’s State-Owned Financial Institutions

Abstract

Present study aims to explore the role of privatization-induced insecurity of job among employees of Pakistan’s public sector financial institutions and to examine the multidimensional consequences related to physical health, family, work-life imbalances, and psychological related domains. 125 semi-structured in-depth interviews taken under qualitative study by utilizing the interpretivist approach among state-owned five financial institutions which are undergoing privatization or anticipating privatization. Interviews were analysed through thematic analysis to know the patterns in lived experiences of employees. Results of the study indicate that perceived job insecurity due to privatization functions as persistent and chronic stressor factor rather than temporary change is the organization. Emotional exhaustion, stress, and anxiety are the main psychological strains that emerges as mechanism which link to perceived job insecurity and be a reason for multiple outcomes like reduce contextual and task performance, physical health deterioration, work-life imbalances, and negative spill-over into social relationships and family. Coping strategies at individual level provides relief up to limited level but organizational support plays crucial role in mitigating adverse effects of perceived job insecurity due to privatization among employees. The study contributes theoretically and methodologically by utilizing the in-depth semi-structured interviews. Policymakers and leaders of organizations must incorporate the well-being of employees while considering privatization of state-owned institutions by effective strategies of communication, stress-reduction interventions, and supportive management practices.