A study on psychological contract, job satisfaction and turnover intention in banking industry

Abstract

This paper outlines the critical role of employees' job satisfaction and psychological contract in turnover intention. The discussion arises primarily based on the considerable phenomenon arise in the post financial crisis era: the rising rate of turnover intention in the banking industry. There is little research has been done concerning the facts in the banking industry according to present literature. To discover the relationship among psychological contract, job satisfaction and turnover intention, a research framework is developed in which job satisfaction and psychological contract and turnover intention are put in one model. The empirical findings from a survey of 300 employees in China's banking industry confirmed that there exists tight connection among these three factors. A psychological contract approach which emphasizes mainly to its “individual” level has three dimensions: basic obligation, work supportive obligation and developmental obligation. Job satisfaction consists of 3 dimensions which are external, internal and general job satisfaction. Turnover intention is measure with three items. Data collected are analyzed by SPSS 13.0 with methods such as factor analysis, reliability analysis, correlation analysis and regression analysis. Our main conclusions are: the general level of China's banking industry is above average; Employee's psychological contract is positively related to both turnover intention and job satisfaction.