Pace or Plummet? How Psychological Contract Breach Shapes Employee Performance Over Time

Abstract

This study examines how psychological contract breach (PCB) influences employee performance trajectories over a year. By analyzing supervisor-rated performance across four intervals, two performance trajectories were identified: “Steady Achievers” (95.5%), who maintained high performance, and “Ebb and Flow Achievers” (4.5%), whose performance initially rose but later declined. PCB was associated with lower baseline performance in both groups, with “Ebb and Flow Achievers” experiencing less growth and sharper declines. These findings challenge the assumption of uniform consequences of PCB, offering a nuanced, trajectory-based perspective that captures the evolving and differential effects of PCB on employee performance over time. Moreover, they highlight the need for tailored support, including regular check-ins, accountability partnerships, and wellness resources.