Psychological Contract Violation and Voluntary Employee Turnover

Hong-Leong Teh (), Shwu-Shing Ng, Yong-Hooi Lim, Tun-Pin Chong, Yen-San Yip and Ka-Fei Lai
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Hong-Leong Teh: Universiti Tunku Abdul Rahman, Faculty of Business and Finance
Shwu-Shing Ng: Universiti Tunku Abdul Rahman, Faculty of Business and Finance
Yong-Hooi Lim: Universiti Tunku Abdul Rahman, Faculty of Business and Finance
Tun-Pin Chong: Universiti Tunku Abdul Rahman, Faculty of Business and Finance
Yen-San Yip: Universiti Tunku Abdul Rahman, Faculty of Business and Finance
Ka-Fei Lai: Universiti Tunku Abdul Rahman, Faculty of Business and Finance

A chapter in Proceedings of the 11th International Conference on Business, Accounting, Finance and Economics (BAFE 2023), 2023, pp 316-321 from Springer

Abstract: Abstract A psychological contract is an unwritten agreement between the employer and employee that outlines the expectations and obligations of the other. A gross violation of this psychological contract has dire consequences, namely voluntarily employee turnover. There are a lack of studies that examine the components of a psychological contract from the perspective of the employee, and how this influences employee voluntary turnover. Due to psychological contracts being mostly unwritten expectations, there appears to be some variation on the expectations of employees across different studies. The current study does an exhaustive review of past literature, and therefore proposes that four antecedents namely work environment, bonus and allowances, personal and career development, and work-life balance create the basis of this psychological contract. The proper management of the four components of this psychological contract have a significant impact on reducing employee voluntary turnover within the organisation.

Keywords: Psychological contract; turnover; motivation; work psychology (search for similar items in EconPapers)
Date: 2023
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DOI: 10.2991/978-94-6463-342-9_23

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