The Psychological Contract Theory on Student Retention: A Systematic Literature Review

The purpose of this article is to cover the themes central to psychological contract theory as well as its impact on student retention. While psychological contract theory has been extensively studied and applied in work-related settings, its influence in educational settings has not been fully explored. To address this gap, this study collected and analyzed data following the Preferred Reporting Items for Systematic Reviews and Meta-Analyses (PRISMA) guidelines. Data was collected from studies published between 2013 and 2023, resulting in the analysis of 24 eligible papers from various academic databases in the review. Based on the number of eligible papers within a ten-year timeframe indicates a scarcity of research on psychological contracts in educational contexts, particularly concerning student retention. The findings from the 24 eligible papers were synthesized and reported using descriptive analysis and tabulation, thus shedding light on how psychological contract theory influences student retention. The analysis suggests that unfulfilled psychological contracts between students and academic staff can contribute to student attrition, especially when students' expectations, formed during earlier educational experiences, are not met. This systematic literature review emphasizes the importance of the psychological contract in educational settings particularly in managing the dynamic student and academic relationship. The review made suggestions for practical implications for academic leaders, policymakers, and education administrators, stressing the need for adaptive, inclusive, and forward-looking approaches in education, and recommendations for future studies.