Impact of job insecurity on turnover intention and task performance: mediating role of depression due to Covid-19

Covid-19 caused great tension in all industries around the world including the textile industry. It has left a long-lasting impact not only on the world economy but everyone. The primary stressor during covid-19 outbreak was job insecurity as it negatively influenced individual’s financial situations. This situation posed a negative impact on employees’ mental well-being as well as task performance. The purpose of this study was to determine the effect job insecurity due to Covid-19 pandemic on turnover intention and task performance as two important outcomes within Pakistani textile industry. This study also examined depression as a mediating variable. The present study was situated within Pakistani textile industry. The interest in textile products abroad and home-grown sales boiled down to a grinding halt due to the frenzy and panic situation. All the textile industries were closed, and it was tough to parallel think about how these industries will be permitted to operate. Quantitative research design was used to test the hypotheses. Data was collected using convenient sampling technique and the sample size for the main study were 205. Data were collected from medium and lower-level employees of targeted Pakistani textile industries (Nishat Textile Lahore, Sapphire Sheikhupura and Interloop Textile Lahore). These employees were most influenced by the Pandemic. Data were analyzed using Structural Equation Modelling in two steps (CFA and SEM) and for this purpose AMOS software was used. The findings of this research highlighted a significant positive impact of job insecurity on turnover intention and depression and significant negative impact on task performance. It was also found that there was a positive and significant impact of depression on turnover intention and significant negative impact on task performance. The findings described that depression mediated the relationship between (a) job insecurity and job turnover intention (b) job insecurity and task performance. Limitations, practical implications and future research recommendations are also discussed at the end of the paper.