Experience layoffs, work engagement and the buffering effect of POS: a psychological contract perspective

Purpose This study aims to explore the relationship between experience layoffs and employees’ work engagement. Drawing on the psychological contract theory, we examine the parallel mediating role of cognitive and affective job insecurity, along with the moderating role of perceived organisational support. Design/methodology/approach The hypotheses were tested based on data collected from 737 employees of companies in various industries in China in an online survey. Findings The results showed the significant effect of experiencing layoffs on employees’ work engagement through cognitive and affective job insecurity, and the effect was stronger when perceived organisational support was lower. The moderated mediation effect mainly occurred through affective job insecurity but not cognitive job insecurity. Originality/value This study deepens the understanding of the mechanism of the negative effect of experiencing layoffs and the boundaries of its impact from a psychological contract breach perspective. By analysing the mediating role of cognitive and affective job insecurity, we have enhanced our understanding of the exchange-based mechanism of employees after experiencing layoffs. By examining the moderating role of perceived organisational support, we reveal the important role of supportive behaviours of organisations in mitigating the negative effects of experiencing layoffs.