The psychological contract and retention practices in the higher education context: the mediating role of organisational justice and trust

Abstract

Employee turnover and talent retention are both key concerns for higher education institutions because they are losing highly qualified staff members to the private sector and other higher education institutions that offer better rewards and benefits. This study explored the mediating effect of perceptions of organisational justice and trust relationships on the link between higher education institution staff’s psychological contract perceptions and satisfaction with organisational retention practices. The study involved a cross-sectional quantitative survey with a sample of ( N = 493) full-time employees, both from academic and support staff, at an open distance learning higher education institution in South Africa. Structural equation mediation modelling and mediation analysis showed that organisational justice and trust relationships function as positive parallel and separate mediating mechanisms in the psychological contract – retention practices’ satisfaction link. The study highlighted the importance of employees’ psychological contract beliefs in the employee–organisation relationship, and especially in determining mutual expectations that guide and shape perceptions of organisational justice and trust. Employees’ satisfaction with retention practices is positively enhanced when they experience mutually satisfactory just and trustworthy relations in the organisation.

The psychological contract and staff retention among South African higher education employees: The influence of socio-demographics

“…When employees have a strong psychological contract with their employer, they are less likely to leave their organisation and more likely to be committed to their employer (Chin & Hung, 2013;Deas, 2017;Ngakantsi, 2022). Previous studies concur that perceived psychological contract breach negatively affects commitment and retention, and increases both planned and actual turnover (Deas, 2017;Peirce et al, 2012;Snyman, 2021;Van Dijk & Ramatswi, 2016).…”

“…While research confirms the association between the psychological contract and staff retention, as well as the importance of psychological contract preferences in strengthening retention and lowering turnover (Deas, 2017;Kraak et al, 2017;Peirce et al, 2012;Snyman, 2021;Van der Vaart, et al, 2013; Orientation: The global skills crisis, 'the great resignation', and technological advancements have impacted the higher education (HE) sector in South Africa. Staff retention is at risk because of the specialised skills sought by institutions, making employment relationships and skill retention top priorities.…”

“…Descriptive statistics and reliability coefficients (N = 493).Source:Snyman, A.M. (2021). A framework for staff retention in the higher education environment: Effects of the psychological contract, organisational justice and trust.…”

Psychological Contract Breach and Outcomes: A Systematic Review of Reviews

“…Second, several new ways of research and application of psychological contract breaches have been recently proposed, such as its impact on customer sexual harassment [ 67 ], workplace bullying behaviors [ 68 ], and expatriates’ psychological contracts [ 69 ]. Third, as past research on psychological contract breaches and fulfillment and their outcomes has primary focused on employment relationships, currently, some proposals are trying to apply the psychological contract approach to other not work-related relationships, as the link between students and universities [ 70 ] or doctoral supervisory relationships [ 71 ]. These attempts of widening the application of the psychological contract to higher education contexts would prove its usefulness as well as provide new research insights.…”

Fostering organisational commitment: a resilience framework for private-sector organisations in South Africa

“…Unfortunately, the African continent faces significant challenges in retaining its highly skilled workforce due to issues like inadequate compensation, unattractive work environments, socio-economic challenges, and political instability ( Ebeye and Lee, 2023 ; Ombogo, 2023 ). Moreover, high employee turnover rates continue to pose a significant and persistent challenge for South African private sector organisations, necessitating a focused effort on talent retention ( Musakuro and De Klerk, 2021 ; Maloba and Pillay-Naidoo, 2022 ; Snyman et al, 2022 ; Tongchao et al, 2022 ).…”