Examining the Link between Psychological Contract Violation and Employee Commitment - A Study of a Nigerian Mortgage Bank.

This research aims to critically examine if a relationship exist between employee commitment and their psychological contract - employee beliefs about the reciprocal and promissory obligations between them and their employer in this Nigerian mortgage bank. This research would also examine the impact of Nigerian cultural environment on employee’s psychological contract. In this study, it was hypothesized that there is a significant relationship and link between psychological contract violation and employee commitment (i.e. intention to quit behaviour). The research followed a quantitative methodology utilising questionnaires and the sample population was made up of full time employees of a Mortgage Bank in Nigeria. One hundred and forty (140) usable questionnaires were received. Pearson correlation co-efficient was used in analysing the survey data. The results of this study indicates that that there is a relationship between psychological contract violation and employee commitment (i.e. intention to quit), the results also highlight a negative correlation indicating that employees will necessary not quit (i.e. commitment) although they experience psychological contract violations. Also this study highlighted that the highest level of importance attached by employees to psychological contract items studied (namely job satisfaction, career development and promotions) was the item “Promotions”. The outcome of this research will stimulate discussions on the implications of psychological contracts, retention interventions and measures managers can implement to enhance employee commitment and minimise voluntary critical skills turnover, thereby reducing overall operational cost.