Psychological Contract and its Influence on Employee Turnover Intention as Mediated by Organizational Citizenship Behavior in Selected Private General Insurance Companies

Abstract

Psychological contract is one of the vital aspects in determining the relationship newlinebetween employer and the employee. The degree to which organizations attempt to realize and fulfill psychological contract is a significant achievement aspect for the employment relationship. Predominantly existing literature describes a strong association between fulfillments of employee psychological contract and employee turnover intention. However, due to technical changes and digital transformations, relationships between employees and employers are undergoing foundational changes whereby reducing employee turnover intention is a major challenge. Insurance industry is not an exception to it. The present study examines the effect of psychological contract (PC) on organizational citizenship behavior (OCB) and Employee Turnover Intention (ETI) for the employees working with private insurance sector. For further insights, referring to the extensive literature where employee behaviors have important consequences in the workplace, the study attempts to examine the mediation effect of organizational citizenship behavior for the relationship between psychological contract and employee turnover intention. Furthermore, the study also attempts to examine the group moderation effect of select demographic variables (Gender, workplace designation, Educational qualification) for the relationship between psychological contract, organisational citizenship behavior and turnover intention. The study employed a quantitative research method with a sample of 667 full-time employees from insurance industry in India. The statistical analysis was conducted with the help of PLS SEM approach using SMART PLS software. The mediating role is examined with the help of Baronand Kenny method along with Bootstrap SEM method applied on the collected data using AMOS software. The results indicated the significant effect of PC on ETI directly as well as indirectly through OCB. This study contributes significant insights to company executives and HR managers to reduce ETI and as a result decrease turnover frequency of talented employees from their organization by inflicting effective concern for fulfillment of PC and instilling OCB among employees newline newline