Mediating Role of Work Engagement on the Relationship Between Psychological Contract and Turnover Intention of Insurance Agents in Batticaloa District


  • Harishanthan S.


Purpose: Sri Lankan insurance companies are competing to gain an edge over other financial sectors as well as to achieve their business goals. The aim of this study is to identify the impact of psychological contracts on the turnover Intention of Insurance agents in Batticaloa District with the mediating role of work engagement in an attempt to fill the knowledge gap observed in this study area to some extent.

Design/methodology/approach: The primary data were gathered from 184 employees from selected ten insurance companies based on a stratified random sampling method through self-reported questionnaires and a five-point Likert scale was assigned to measure the variables. The collected data were analyzed by using univariate, bivariate, and multivariate techniques in SPSS 22.0 version software.

Findings: Based on the findings of the study, it can be concluded that psychological contract, work engagement, and turnover intention are at a moderate level, high level, and low level respectively. The results indicate that there is a significant and moderate negative relationship between turnover intention, psychological contract, a significant and moderate positive relationship between psychological contract and work engagement and a is a significant and strong negative relationship between work engagement and turnover intention. Also, work engagement does not mediate the relationship between the psychological contract and turnover intention.

Implications: The study can positively contribute as a strategy-level document in formulating human resource policies in insurance companies. Therefore, the findings of this study are important in relation to promoting work engagement when designing an organization.

Keywords: Psychological Contract, Turnover Intention, Work Engagement