Psychological Contract Breach and Its Consequences on Employee Turnover Intentions, Job Satisfaction, and Organizational Commitment: Insights from Human Resource Management and Workplace Psychology

Abstract

This study investigated the impact of psychological contract breach on employee outcomes, focusing on turnover intentions, job satisfaction, and organizational commitment. Psychological contracts, which encompass the unwritten expectations between employees and employers, play a central role in maintaining workplace trust and stability. When these implicit agreements are perceived as violated, employees often experience reduced satisfaction, weakened organizational commitment, and a stronger inclination to leave their jobs. Using a quantitative research design, data were collected from employees across multiple organizational contexts, and regression analysis was applied to determine the relationships among variables. The findings revealed that psychological contract breach significantly increased turnover intentions while exerting a negative effect on both job satisfaction and organizational commitment. These results underscored the importance of organizational transparency, fair HR practices, and effective communication in mitigating contract breaches. The study contributed to the growing body of knowledge on employee-employer relations by emphasizing the critical role of psychological contracts in shaping workplace attitudes and behaviours. Moreover, it highlighted the need for organizations to address breaches proactively to retain talent and sustain long-term performance. Future research should explore the role of mediating factors, such as organizational justice or leadership style, and examine psychological contract dynamics across industries and cultures.

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