The Effects of Public Sector Privatization on Employee Wellbeing and Job Security. A case study of King Faisal Specialist Hospital (KFSH)

The purpose of this research is to understand how the public sector privatisation contributes either positively or negatively to employee’s well-being and job security.

July 2025

August 2025

Research …. To research on the concept of public sector privatisation and employees wellbeing and job security

Analyse…. To analyse the impact of public sector privatisation on employees wellbeing and job security

Recommend …. To recommend on best strategies of public sector privatisation to achieve appropriate employee wellbeing and job security

The KSA intend to diversify their economy and enhance the private-sector inclusion from 40% to 65% of GDP by year 2030. Currently, they have initiated approximately 200 projects in 17 different sectors (Jubair & Singh, 2022). In Healthcare context where KFSH, International Trade Administration (2024) report highlight KSA government has been focusing on privatisation of healthcare sector from 20-35% by 2030. With these changes being eminent, the wellbeing and job security of the employees would be affected. In particular, wellbeing would be impacted by job satisfaction and mental health challenges and uncertainties. In terms of job security, Fallatah and Halawani (2024) research involving 136 employees had identified 67% of permanent employees as being insecure about their jobs. Hence, with privatisation being a popular undertaking and with significant effects on employees wellbeing and job security, this study is relevant. In line with CIPD (2024) findings, 51% of organisations are supposed to embrace strategic approaches in management of wellbeing and job security of employees in times of privatisation. This will be evaluated in this research with best practice identified.

Use the following structure:

Introduction

In this section, a literature review has been provided on the available research which assists in identifying the effects of public sector privatisation on employees wellbeing and job security. Also, the strategies which can be embraced for a successful public sector privatisation for avoiding negative issues in employee’s wellbeing and job security has been pursued.

Theme 1 (take from objectives): Public Sector Privatisation impact on Employees wellbeing and job security

The concept of public sector privatisation has over the years attracted an increased focus in the available literature. According to Anaf et al. (2024) research on public sector privatisation, this is largely impacted by the economic and financial implications. In support of these findings, Friedländer et al. (2021) noted that public sector privatisation lead to unleashing of significant changes in organisations internal organisations with the core goal being to increase efficiencies, effectiveness and improved shareholder value. However, in different context, Abdeldayem and Al Dulaimi (2022) research identified the public sector privatisation as leading to increasing uncertainties and hence producing increase in perceptions of occupational stress, reduced job satisfaction and higher mental and physical ill-health symptoms. It is in this regard that evaluation of the impact on employees wellbeing and job security is relevant.

Further, in times of public sector privatisation, Loukopoulos et al. (2025) research identified prevalence of occurrences which contribute to roles ambiguity, roles overloads and roles underload. Also, new working relations are established which lead to job insecurity specifically in regard to future job losses or deteriorating workplace conditions. In support of this, Radić et al. (2021) identified existence of demand for new knowledge and skills development and career growth expectation frustration as leading to issues with job security. Hence, despite of the positive impacts linked with the private sector privatisation, reviewed literature evidence existence of employees wellbeing and job security issues. These would impact on individual employees experiencing strong perception in areas of occupation stress evident from uncertainty when organisations are supposed to be privatised.

Theme 2 (taken from objectives): Impact of Public sector privatisation on employees wellbeing and job security

From the reviewed literature, most of the studies have focused on the positive impact of public sector privatisation to organisation success in areas of employees wellbeing and job security (Rai & Pandey, 2022). Nevertheless, there lacks sufficient literature which has evaluated on how the issues of public sector privatisation impact negatively to the organisations performance and employees fears from privatisation. These negative effects are prominent as articulated in Bokade (2025) as being evident from the employees and multiple stakeholders resisting the privatisation process. This is the gap that the current research will focus on filling by evaluating on how public sector privatisation negatively impact on the employees wellbeing and their job securities.

Conclusion

In summary, there exist a literature gap evaluating on the impact of the public sector privatisation on employees wellbeing and job security. This is the area in which the current research will focus by noting how they are impacted in motivation, satisfaction and fearing lost jobs. Nevertheless, the benefits of public sector privatisation surpass the negatives which would be evaluated in current research.