Psychological contract and its motivational and health‐enhancing properties

Purpose – It has been hypothesized that perceived contract fulfilment is positively associated with affective commitment, leading also to reduced turnover intentions, and with mental health, and that these relationships are fully mediated by work engagement. Employing the job demands resources (JDR) model, the purpose of this study is to examine the motivational and health‐enhancing properties driven by perceived employer psychological contact fulfilment. Design/methodology/approach – The hypotheses were tested in a sample of 178 Finnish employees using structural equation modelling. Findings – The hypotheses were supported. Perceived psychological contract fulfilment had both motivational (psychological contract → work engagement → affective commitment → reduced turnover intentions) and health‐enhancing (psychological contract → work engagement → mental health) effects. Originality/value – The findings highlight the centrality of perceived psychological contract fulfilment to employees, and the importance of work engagement as a positive affective‐cognitive state at work.