ROLE OF THE PSYCHOLOGICAL CONTRACT IN EMPLOYEE RETENTION FOR LOCAL AUTHORITIES IN ZIMBABWE.

ROLE OF THE PSYCHOLOGICAL CONTRACT IN EMPLOYEE RETENTION FOR LOCAL AUTHORITIES IN ZIMBABWE.

GONDO KUDZANAYI

GORE SEKAI NOREEN

SITHOLE KUDAKWASHE

The study sought to analyse the role of the psychological contract in employee retention for
local authorities in Zimbabwe with specific reference to the Municipality of Chinhoyi. The study was
necessitated by a high exodus of skilled personnel. An exploratory survey design was adopted for the study. A
sample size of 114 respondents was drawn from a target population of 400 comprising 382 current employees,
18 former employees and 6 management representatives using the simple random, convenience and purposive
sampling techniques respectively. Questionnaires were used to collect data from both current and former
employee respondents whilst face to face interviews were used to gain management opinion. The study
concluded that there was a feeling of psychological contract breach amongst employees. Research findings
revealed that unfulfilled promises and unfair labour practices by the employer were the major causes for breach
of the psychological contract and subsequently leading to employee turnover. The study recommends that local
authorities in Zimbabwe should accord significant importance to the informal contract of employment to foster
a positive psychological contract through fulfillment of promises made and enhance retention of skilled
personnel. The study also recommends that further research be undertaken to assess the impact of the
psychological contract on service delivery for local authorities in Zimbabwe given the persistent deplorable
service delivery since dollarisation of the economy.

Journal of Research in Business and Management

2016