Psychological Contract Fulfilment and Job Performance of Employees in Selected Insurance Companies in Ghana: The Mediating Role of Job Satisfaction

Abstract

The study investigated the mediating role of job satisfaction in the association between psychological contract fulfilment and employee performance by relying on the social exchange theory. Other issues examined include psychological contract fulfilment and job satisfaction, job satisfaction and job performance and psychological contract fulfilment and job performance. The quantitative approach and causal design were employed, and primary data were collected via structured questionnaires from 476 employees in two selected insurance companies, Glico and SIC. A 341 data set was obtained and processed with the IBM SPSS and SmartPLS software. The data was then analysed with the partial least square-structural equation modelling tool. The study revealed that psychological contract fulfilment improves job satisfaction and job performance, whereas job satisfaction also improves job performance. In conclusion, job satisfaction partially mediates the association between psychological contract fulfilment and job satisfaction. It is recommended that the management of insurance companies should ensure that psychological contracts with their employees are identified and properly fulfilled to trigger job satisfaction and improve the latter’s performance levels