The role of the psychological contract amongst knowledge workers in the reinsurance industry

Abstract

The core assets of reinsurance organisations lie in the knowledge, skills and experience of knowledge workers. The source of competitive advantage within the reinsurance industry lies in managers’ ability to harness and foster discipline, willingness and innovation amongst knowledge workers. Innovation is a key challenge in knowledge intensive firms and it is therefore critical that executives find ways of encouraging an environment that is conducive to sharing ideas, building trust and motivating superior performance. The loyalty and retention of knowledge workers have become key managerial challenges.This research is intended to provide an insight into the development and implications of the psychological contract amongst knowledge workers within the reinsurance industry in South Africa. In understanding the nature of the psychological contract, it is intended that employers will be able to identify how and when psychological violations take place, the extent to which they impact productivity and the implications for knowledge workers’ propensity for departure. The research will provide an insight into the alignment of knowledge worker values and perceived organisational and industry values. Furthermore, this research will provide the basis for establishing a model for remedial and restorative contracting with a view to redefining new psychological contracts in order to achieve optimal performance from knowledge workers within our industry.