Moderating effect of mindfulness in psychological contract breach and work engagement relationship

This study examines the impact of psychological contract breach (PCB) on banking sector employees' work engagement in Pakistan. The relationship was hypothesised between PCB and work engagement based on the job-demand resource model and affective event theory (AET). Data were collected through a survey questionnaire from 239 banking employees in banks in Pakistan. The data were analysed through structural equation modelling (SEM) in AMOS software. The results supported the negative relationship between PCB and employees' work engagement. Moreover, mindfulness moderated the relationship between PCB and work engagement. The relationship was weaker for employees with a high level of mindfulness. The results highlight that unaddressed PCB may lead service sector employees to be less engaged in their jobs. Based on the study's findings, organisations are recommended to understand and address the psychological contract formation process and develop a quality relationship with employees to benefit in the long run.