Psychological contract violation and employee turnover intention among banks in the Cape Coast metropolis: The role of job dissatisfaction

Abstract

he study examined the influence of psychological contract violation on employee turnover intention and the role job dissatisfaction plays in this relationship. This research advances the body of knowledge in the area of psychological contracts by identifying the mechanisms through which psychological contract violations translate into employee turnover intentions. The study employed the explanatory research design and quantitative research approach. The study relied on the social exchange theory, collecting data from 139 employees of banks within the Cape Coast Metropolis using structured questionnaires and analysed with partial least squares structural equation modelling (PLS-SEM). Census sampling technique was used to determine the sample size. The findings of the study confirmed the hypothesis that employees experiencing psychological contract violations raise their turnover intentions, because of the feeling of organisational betrayal, which makes them dissatisfied and detached from their work. Further job dissatisfaction also supports the hypothesis that, job dissatisfaction of employees also contributes to employee turnover intentions. And finally, job dissatisfaction partially mediated the relationship between psychological contract violation and employee turnover intention. The study underscores the multifaceted nature of the relationship between psychological contract violation, job dissatisfaction, and employee turnover intention, particularly within the banking sector of the Cape Coast Metropolis. It was recommended that; the management of banks clearly communicate expectations, responsibilities, and rewards to their employees. Further, managers and directors of banks within the metropolis should be responsive to employee concerns and take action to address them.