In times when there is a shortage of skilled workers, the challenge for companies to recruit or even just retain qualified staff is not getting any easier. In addition to the potential of innovative impulses, employee turnover also results in frictional losses that companies want to avoid. For example, new staff require a training period, and at the same time, companies always lose individually acquired specialist and practical knowledge along with the employees. Vacancy periods also need to be bridged, which increases the workload of colleagues. Katharina Sachse, holder of the Chair of Business Psychology at Schmalkalden University of Applied Sciences, is investigating the psychological factors and mechanisms that are beneficial or detrimental to the retention of employees. During her inaugural lecture at Schmalkalden University of Applied Sciences, she presented a study that empirically investigates these topics and on which she recently published an article in co-authorship with Ulrike Gaedke.
Bonding factors
In order to understand what keeps employees at their jobs, a corresponding perspective must be adopted: One factor of this bond can be described as “commitment”, which conceptually fluctuates between the meanings of obligation and involvement and dedication and obligation. Commitment consists of various components: Affective commitment, which was the focus of the study, is about a perceived attachment to the company and the job. In other words, this refers to a “self-commitment” and “the desire of employees to be and remain part of the company.” In contrast, the relationship shifts in normative commitment: it is no longer about appreciation of the company, but about a perceived obligation towards the company. For example, because my company has financed this costly training course for me, I have a debt to the company and am connected to it. The third aspect is a calculative commitment, which, however, is based on a comparatively superficial bond based on rational considerations. Employees remain here due to individual and situational advantages, but do not develop a deeper relationship.
The question of the study is now how and whether the bonding effect of affective commitment is related to embedding in the job and the psychological breach of contract or whether it has a positive or negative effect on employee loyalty. To clarify this, an online survey of over five hundred participants was conducted and analyzed.
Fit and psychological contracts
Not only does embedding itself consist of different aspects, it is also important to distinguish between the professional and private spheres, both of which have a distinct influence here. The connections are the first aspect: they relate to the social environment and activities, i.e. in addition to the circle of colleagues and managers, collective team-building measures on the one hand, and the family environment as well as the circles of friends and acquaintances and leisure activities on the other. The better the job fits in with these aspects of social quality, the higher the commitment should be. The second aspect, fit, focuses on the compatibility between the individual’s knowledge, talents and biography and the job requirements profile: does the person fit the job, or can they contribute better and more in line with their talents elsewhere? A lack of this fit could therefore lead to excessive or insufficient demands or to frustration in the job. On the other hand, there is the question of how the demands of the job can be reconciled with a successful social life – things like flexitime and much more come to mind here. The third component is the sacrifice and refers to the benefits that the employee would have to give up when changing jobs. In addition to remuneration, these include home office arrangements, job tickets, company pension schemes and childcare options.
The third factor is the the breach of the psychological contract and its consequences. It is important to avoid this breach, as it has negative effects on employee loyalty and their willingness to work. What is the psychological contract? Unlike the employment contract, it is not part of direct negotiations, nor is it written down or enforceable. The psychological contract is a mutual expectation that can be shaped by various situations and actors involved. On the part of the employees, this can already happen through the digital self-presentation of the future company on the Internet, through the image or the mission statement. Other influences can come from the job interview or the onboarding process. Of course, employee appraisals and the like are also relevant here. The result is an expectation of the employee towards the organization, be it monetary promises, the orientation of the job, further training or other things. If this expectation is not met, the psychological contract may be broken: The consequences are a breach of trust, disappointment and a drop in morale. Precisely because the psychological contract is not codified, it is the responsibility of managers to watch out for signs of non-compliance on the part of employees.
Survey and evaluation
Katharina Sachse and Ulrike Gaedke explored the questions of employee retention via an online survey at the beginning of 2024, which they disseminated via career networks and a university for part-time study. The sample comprised 512 individuals who had to complete a questionnaire that in turn covered the various facets and dimensions of the study.
As a result of the study, it can be summarized that a direct, strong statistical correlation was found between the variables mentioned and that the factors can therefore strengthen employee loyalty. One hypothesis of the study was that embedding strengthens affective commitment, which in turn leads to higher employee retention. Even though this assumption was confirmed, a relationship between embeddedness and employee retention was also found to be independent of commitment. Consequently, promotion would be worthwhile here.
Perceived the breach of the psychological contract reduce the binding effect of other aspects. Breaches of contract are not uncommon: around a quarter of those surveyed were able to name one or more examples, with most of the unkept promises relating to personnel development and salary.
Retain employees
As a result, companies that should be interested in employee retention for good reasons can now fall back on adjusting screws. In addition to traditional team-building measures, the fit of the job can be continuously optimized. With these measures, it is important to pay attention to the individual needs of employees and to consider the fit between the private and professional spheres. In addition, companies and especially managers and those responsible in the HR department should develop a sensitivity towards the psychological contract: In addition to the explicit statements, the implicit content is also important.
The article will be published in the journal Führung + Organisation (zfo) in April 2025. The two researchers were also able to present the study at the 28th symposium of the Society for Applied Business Psychology (GWPs) in Hamm at the beginning of the year.
Katharina Sachse has been Professor of Business Psychology at HSM since the winter semester 2024/25. She completed her doctorate at the TU Berlin on the topic of “Risk perception and behavior of private investors” and was involved in various research projects on the communication of health risks. She then worked as an occupational psychologist and organizational consultant. She also taught at various universities before taking up a professorship in business psychology at the FOM University of Applied Sciences in Berlin in 2016. Her research focuses on topics such as commitment, leadership and health in the modern working world.