The Relationship between Psychological Contract Breach and Engagement: Job Satisfaction and Organisational Support as Moderators

Abstract

The purpose of this study was to investigate the moderating effect of job satisfaction and organisational support on the relationship between psychological contract breach and work engagement. An experimental design involving quantitative research methodology was used, conducting a survey of 1 029 respondents. The relationship between psychological contract breach and work engagement is more complex than previous studies suggest: This research concludes that job satisfaction moderates the relationship between psychological contract breach and work engagement. Organisational support, however, does not have a significant moderating effect on this relationship. It was also limited to South African organisations; comparative studies in other African countries and other emerging markets would be useful. Psychological contract breach has an adverse effect on work engagement. This finding is particularly important for organisations going through economic difficulties with resultant resource losses - that are perceived by employees as a breach of psychological contract. This study suggests that organisations ought to commit their limited resources to increase job satisfaction during periods of change. It will lead to employees having a buffer between this breach and the risk of potentially lower engagement levels. Increased levels of employee job satisfaction would moderate the effect of psychological contract breach on work engagement – thus reducing the probability of poor work engagement. Surprisingly, organisational support did not have a significant moderating effect on the relationship between psychological contract breach and work engagement.