When Promises Are Broken: How Leaders Prevent Employees from Quitting

What is it about?

This study explores how employees’ perceptions of psychological contract breaches—when organizations fail to keep promises—affect their intentions to quit. Drawing on Social Exchange Theory (SET), the authors argue that when employees feel betrayed by their organization, they may want to retaliate or withdraw. However, the study shows that certain leader-related resources can buffer this effect: how efficiently leaders share knowledge (communication efficiency), how fairly they do so (informational justice), and how they relate to employees through humility and forgiveness. Using data collected from employees in Angola’s oil distribution sector, the researchers find that perceptions of broken promises strongly predict turnover intentions. Yet, this link weakens when employees believe that leaders communicate promptly and transparently, treat them fairly, and show understanding and forgiveness. Similarly, employees who display humility—accepting leadership authority and valuing organizational hierarchy—are less likely to react negatively to perceived breaches. Together, these resources help sustain trust and emotional balance even when expectations are violated. The findings reveal that leaving is not an automatic response to broken promises; it depends on how much social and informational support employees feel from leaders. When leadership fosters clarity, empathy, and mutual respect, employees are more willing to stay, even in turbulent industries like Angola’s oil sector. Organizations can thus counter the effects of psychological contract breaches not only through policies but through day-to-day fairness, communication, and relational care.

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Photo by Campaign Creators on Unsplash

Photo by Campaign Creators on Unsplash

Why is it important?

This study is unique in examining four complementary leader-related resources—communication efficiency, informational justice, humility, and forgiveness—as joint moderators of the relationship between contract breaches and turnover intentions. By separating informational (knowledge-sharing) and relational (behavioral) dimensions, it offers a nuanced understanding of how leadership behaviors shape employees’ reactions to organizational disappointment. It is also timely, as employee trust and retention are global concerns in an era of frequent restructuring, uncertainty, and unmet expectations. Conducted in Angola, a context marked by economic volatility and limited job mobility, the study highlights that strong social exchanges can still sustain loyalty. The results provide a roadmap for leaders seeking to rebuild trust after organizational setbacks: communicate clearly, act fairly, remain humble, and practice forgiveness. These relational strengths transform organizational breaches into opportunities for renewed engagement and resilience.