Abstract
Orientation: The workplace is governed by a variety of formal agreements that define the employment relationship. Despite its informal nature, the psychological contract is crucial in the employment relationship and is often disregarded.
Research purpose: This study aimed to explore the psychological contract inventory experienced by employees within a South African waste management company during a period of significant economic uncertainty. The research was conducted in the second quarter of 2024, a time marked by notable socio-economic challenges in South Africa, including persistent stage loadshedding, elevated inflation levels, and a high national unemployment rate.
Motivation for study: The motivation for the study stemmed from the limited understanding of the psychological contract inventory within the waste management sector in South Africa, under conditions of economic uncertainty. Exploring this overlooked employment relationship factor could provide valuable insights into how organisations could better support employees.
Research design and method: Given the exploratory nature of the study and the need to gain in-depth insights into employees lived experiences and perceptions, a qualitative approach was deemed appropriate. Semi-structured interviews were used as the primary data collection method, allowing participants to articulate their expectations and perceptions. Thirteen participants were selected using purposive sampling based on criteria such as length of service, occupational level and age profile. The population group consisted of managers at various levels within the waste management company, all with over a year of tenure. This ensured participants had sufficient organisational knowledge to provide informed insights on the psychological contract dynamics. Thematic analysis was conducted using an inductive coding approach with the assistance of ATLAS.ti.
Main findings: The study found that employees held multifaceted expectations of their organisation, including career development, training opportunities, job autonomy, transparent reporting structures and fair compensation. In times of uncertainty, employees perceived the organisation as obligated to provide job security, competitive benefits, consistent leadership support and transparent communication. When these obligations were not met, employees experienced breaches in the psychological contract, leading to emotional and behavioural responses such as distrust, demotivation, disappointment and disengagement. These findings provide practical insights into how organisations can foster conditions that uphold employee
vi
expectations while also contributing to the theocratical understanding of the psychological contract inventory.
Practical implications: It is important for organisations to understand employee expectations and what they consider as expectations to prevent psychological contract breaches. Providing opportunities for career growth, training and development, fair compensation, employee benefits, job security, job autonomy, leadership support, and transparent communication, organisations can build trust, enhance motivation and strengthen commitment. Conversely, addressing breaches in trust, transparency and support is critical to prevent frustration, disengagement and reduced employee performance.
Contribution: The study makes important theoretical contributions by extending the psychological contract literature. It highlights employee views on expectations and organisational obligations during times of uncertainty and further emphasises the implication of psychological contract breaches.