Employee well-being, intention to leave and perceived employability: a psychological contract approach

Abstract

Employability emerged as a "new psychological contract" that may have beneficial effects on both individual and organisational outcomes. The study set out to investigate the relationship between perceived employability and employee well-being on the one hand and perceived employability and employees' intention to leave on the other. The role of the state of the psychological contract, in terms of retaining employable employees while improving their well-being, was also investigated. Cross-sectional data were obtained from employees representing various organisations (N = 246). Contrary to expectations, structural equation modelling (SEM) indicated no significant relationship between perceived employability and wellbeing. Perceived employability was a significant predictor of employees' intention to leave the organisation. Results also indicated that the state of the psychological contract does not moderate the relationship between perceived employability and employee well-being and their intention to leave, respectively. The study stresses the importance of fulfilling promises made to employees ensuring that promises are fair and continuing to fulfil promises. The importance of interventions on individual-level, to enhance well-being in the workplace, is also emphasised.