Psychological contract violation and turnover intention: the role of job dissatisfaction and work disengagement

Abstract

PurposeThis paper investigates the role of psychological contract violation (PCV) as the antecedent of employee turnover intention. It also explores the role of job dissatisfaction and work disengagement as the sequential underlying mechanism of a positive effect of PCV on employee turnover intention.Design/methodology/approachDrawing on social exchange theory (SET), the authors postulate that PCV triggers negative reciprocity behaviour in employees, which leads to job dissatisfaction and work disengagement, which in turn develop into turnover intentions. The authors tested the research model on time-lagged data from 200 managers working in the banking sector of Pakistan.FindingsThe findings confirmed the hypothesis that employees experiencing PCV raise their turnover intentions because of a feeling of organisational betrayal which makes them dissatisfied and detached from their work.Originality/valueThis research advances the body of knowledge in the area of psychological contracts by identifying the mechanisms through which PCVs translate into employee turnover intentions.