Abstract:
The psychological contract is an essential factor for employee
retention. The aim of this research is to investigate the relationship
between the contents of the psychological contract and employee’s
intention to retain of Nor Lanka Manufacturing Colombo Ltd. To
examine the relationship between the contents of Psychological
Contract and employee's intention to retain. The sample of this study
consisted of 175 employees' works at Nor Lanka Manufacturing
Colombo Ltd. In order to gather information, a structured
questionnaire is developed and distributed. The data were analyzed
using SPSS 20 version and Descriptive Statistical technique,
Correlation and Regression were used to test the hypotheses. The
statistical results of the study reveal that Job Security and Flexible
Time Schedules are significant predictors of Employees Intention to Retain. The review of the literature suggests that the psychological
contract is extremely important for organizations to manage as it has
an impact on employee Intention to Retention. The study concludes that
it is important to manage the psychological contract and human
resource employee retention significantly impacts employee
development as well as an assessment of psychological contract
fulfillment. The failure of a company to comply with its obligations (as
perceived by an employee) can erode the employment relationship.
