Abstract:
Extensive research on the experience of the psychological contract and job insecurity of temporary employees has
taken place internationally. However, no studies were conducted in South Africa focusing on the psychological
contract and job insecurity of temporary staff employed by a Temporary Employment Service Provider. There has
been a proliferation of firms involved in Temporary Employment Services since 1983 in South Africa and the
industry has grown exponentially since 1996. To accomplish the objectives of this article, literature and empirical
research was used. A survey questionnaire was used to assess the demographic information and to measure the
experience of the psychological contract and job insecurity as to determine the correlation and difference in
experience by temporary personnel in a South African health insurance company. A cross-sectional design was
used to asses interrelationships among variables within the target population (N= 149). The psychological contract
questionnaire determined the personnel's experience of specifically employer obligations. Further objectives
included determining the degree to which the psychological contract is related to job insecurity levels, their
involuntary or voluntary status and their demography. A further objective was to make recommendations regarding
the same to the Temporary Employment Industry. The results showed that work promises, work atmosphere
promises and management promises were largely perceived to be kept and organisational promises were half kept.
Factors of job insecurity related strongly to factors of the psychological contract, particularly job insecurity factors
relating to threats to present tenure and optimism of future tenure. The literature study has shown that voluntary
status has a moderating effect on job insecurity but the empirical study has shown that this effect was marginal in
this case study. Demography was not found to show a significant difference on the employees' psychological
contract and only showed a relation to job insecurity on face value. Several recommendations related to the
findings were made to Temporary Employment Service Providers.
