A framework for staff retention in the higher education environment: effects of the psychological contract, organisational justice and trust

Abstract

The general aim of the research was to construct a framework for staff retention in the higher education environment. The elements of the retention framework were based on the results obtained from empirically examining the mediating effect of organisational justice and trust on the relationship between the psychological contract and employees’ satisfaction with a complex set of human resource (HR) practices that influence staff retention (including compensation, job characteristics, training and development opportunities, supervisor support, career opportunities and work–life balance policies). The framework also took into account the moderating effect of the socio-demographic characteristics of race, gender, age, job level and tenure on the individuals’ perceptions of the psychological contract, as well as their perceptions of organisational justice and trust in predicting their satisfaction with HR retention factors.

A cross-sectional quantitative survey was conducted on a purposively selected sample of full-time employees, both academic and support staff (n = 493), from a single open distance learning institution in South Africa. Descriptive, correlation and inferential statistics provided evidence that employees’ beliefs about employer and employee mutual obligations, job satisfaction and state of the psychological contract compose the fabric of the psychological contract that predicts satisfaction with the retention practices through the psychological mechanisms of, especially, distributive justice and trust relationships with supervisors and managers. No significant moderating effects were observed. Employees differed in their perceptions of employer obligations, job satisfaction and state of the psychological contract, but not necessarily in their perceptions of justice and trust. These differences confirmed the psychological contract as an essential aspect of the employer–employee relationship, and as key to retention considerations. Correlational links and differences among certain groups regarding the need for retention practices, such as training and development and career opportunities, further signal the importance of integrating retention practices as an element of the psychological contract. The framework for staff retention was constructed based on the key insights derived from the core significant findings. The research extended the classical social exchange theory and contributed new knowledge to psychological contract and retention theory. Recommendations for HR retention practice were made based on the proposed retention framework for the higher education setting.