Effect of Psychological Contract on Employee Turnover Intention: Moderating Role of Select Demographic Variables

Abstract

Since the inception and the spread of COVID-19 from March 2020 in India, companies have experienced a rapid increase in the rate of unemployment as well as employee turnover intention. However, though employer appears to have additional power due to high unemployment levels, but it’s also been balanced by employees having new and more alternatives over whom they get employed due to extensive adoption of remote working by all the companies. Employees are highly satisfied at the workplace, prone to get retained with the organization, develop faith in the organizational system only if there is fulfillment of their psychological contract; employer’s showing concern for employees. This study aims to examine the relationship between psychological contract and employee turnover intention for the employees working in general insurance companies in India. The study further explores the moderating effect of select demographic variables for the relationship between psychological contract and employee turnover intention. These demographic variables are considered as independent groups and their moderation effect relationship between Psychological Contract and Employee Turnover Intention is tested with the help of SMART PLS software. The findings are insightful and will pave the way for the insurance companies to retain the employees by reducing their employee turnover intention and focusing on fulfillment of psychological contract.