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Psychological Contract Violation and Voluntary Employee Turnover

In: Proceedings of the 11th International Conference on Business, Accounting, Finance and Economics (BAFE 2023)

Author

Listed:
  • 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)

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.

Suggested Citation

  • Hong-Leong Teh & Shwu-Shing Ng & Yong-Hooi Lim & Tun-Pin Chong & Yen-San Yip & Ka-Fei Lai, 2023. "Psychological Contract Violation and Voluntary Employee Turnover," Advances in Economics, Business and Management Research, in: Yuen Onn Choong & Fanyu Chen & Keng Soon William Choo & Voon Hsien Lee & Chooi Yi Wei (ed.), Proceedings of the 11th International Conference on Business, Accounting, Finance and Economics (BAFE 2023), pages 316-321, Springer.
    • Handle: RePEc:spr:advbcp:978-94-6463-342-9_23
    DOI: 10.2991/978-94-6463-342-9_23
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