Outcomes of psychological contract breach for banking employees during COVID-19 pandemic: moderating role of learned helplessness

Purpose The present study aims to understand the relationship between psychological contract breach (PCB) and outcome variables with mediation role of job stress, psychological empowerment and moderating role of learned helplessness. Design/methodology/approach Descriptive cross-sectional research design was deployed. Data were collected from the Indian public sector bank employees, especially from those who are regularly going to the banks even during the lockdown situation. A total of 239 respondents were contacted via online and offline method. Findings The authors reported that bank employees feel the breach of psychological contract which induced job stress. Further, job stress negatively impacts their psychological empowerment and psychological empowered employees exhibit increased innovative behavior and well-being. The authors also found that job stress and psychological empowerment mediated the relationship between PCB and outcome variables, and learned helplessness moderates this relationship. The current study captures the psychological response of employees during the pandemic era. Originality/value The study also highlights that during the pandemic, when majority of the employers have given work from home, the public sector employees were regularly going to the banks with fragile mindset. The banks' managers and HR managers can also understand that how the fulfillment of expectations is important not only for employee well-being but also for the health of the organization.