Does psychological contract fulfilment determine employees’ work engagement? Empirical evidence from government sector employees

People’s engagement and success at work depend heavily on the psychological contract. Professionals must design strategies to manage employee expectations effectively. This study examined how employee work engagement is influenced by transactional and relational psychological contract fulfillment. To fulfill its objectives, this research utilized a quantitative approach and an explanatory research design. A total of 315 government employees made up the population under study, and 177 responses were included in the sample size using the sample size determination formula. This investigation used both primary and secondary data sources, as well as correlation and regression analysis, to investigate the correlation and influence of independent variables on the dependent variable, employee engagement. Psychological contract fulfillment and employee engagement in the researched area were shown to be positively and significantly correlated in this study. Moreover, employee engagement is positively and significantly affected by both relational and transactional psychological contract fulfillment. The theoretical implications of the study underscore the need to incorporate cultural and contextual factors, as per social exchange theory, in understanding psychological contracts and employee engagement in Ethiopia. Practically, this study contributes by providing valuable insights for organizational leaders and policymakers to enhance work engagement and organizational effectiveness within diverse cultural contexts.