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SCENARIO/CASE STUDY
“Repositioning Talent in a Changing World”
Nkomo Holdings is a large South African organisation in the logistics and freight industry. Over the
past three years, they’ve faced severe skills shortages in critical positions such as supply chain
analytics, fleet management, and HR data science. Despite efforts to attract talent, high turnover has
remained a problem, particularly among young professionals and mid-level managers. A recent
internal climate survey revealed dissatisfaction with career development, unfair pay practices, unclear
performance expectations, and a weak employee voice in decision-making. Trade unions have called
for improved collective bargaining structures and more inclusive labour relations practices. In
response, the company has established a task team, including HR, union representatives, and line
managers, to review their training, compensation, performance management, and career systems in
line with transformation goals. The task team is expected to align their strategy with the emerging
nature of hybrid work and digital transformation.
QUESTION 1
A) Briefly explain psychological contract and critically discuss the forms of turnover as well as
the various factors that influence job, and occupational embeddedness.
In today’s evolving workplace, organisations must pay close attention to the factors that influence
employee retention and turnover, especially in critical skill areas. Understanding the psychological
contract, different forms of turnover, and the factors that support job and occupational embeddedness
is essential. At Nkomo Holdings, recent internal findings and ongoing challenges such as high
turnover and dissatisfaction with career development reflect deeper issues that relate directly to these
concepts.
The Psychological Contract
The psychological contract refers to the unwritten expectations between an employer and an
employee regarding aspects like pay, working conditions, recognition, and career advancement.
When employees perceive that these expectations are not being met—whether due to unfair
compensation, lack of support, or limited growth opportunities—they may feel betrayed or
undervalued, which negatively impacts motivation and retention (Coetzee, 2021). According to the
case study, Nkomo Holdings is experiencing these exact issues. The climate survey revealed
dissatisfaction with unclear performance expectations and perceived unfairness in pay
practices—both signs of a damaged psychological contract.
Forms of Turnover
Turnover occurs in different forms, with voluntary turnover being particularly costly. This happens
when competent employees choose to leave for better opportunities, often driven by unmet
expectations or more attractive offers elsewhere. Job hopping, common among mid-level managers
and young professionals, can be driven by both push factors—such as poor organisational culture or
lack of recognition—and pull factors like better career mobility or improved working conditions
(Coetzee, 2021). At Nkomo Holdings, high turnover among these employee groups suggests both
forms are present. Involuntary turnover, such as retrenchment, also impacts remaining staff by
lowering morale and commitment, further weakening the psychological contract.
SCENARIO/CASE STUDY
“Repositioning Talent in a Changing World”
Nkomo Holdings is a large South African organisation in the logistics and freight industry. Over the
past three years, they’ve faced severe skills shortages in critical positions such as supply chain
analytics, fleet management, and HR data science. Despite efforts to attract talent, high turnover has
remained a problem, particularly among young professionals and mid-level managers. A recent
internal climate survey revealed dissatisfaction with career development, unfair pay practices, unclear
performance expectations, and a weak employee voice in decision-making. Trade unions have called
for improved collective bargaining structures and more inclusive labour relations practices. In
response, the company has established a task team, including HR, union representatives, and line
managers, to review their training, compensation, performance management, and career systems in
line with transformation goals. The task team is expected to align their strategy with the emerging
nature of hybrid work and digital transformation.
QUESTION 1
A) Briefly explain psychological contract and critically discuss the forms of turnover as well as
the various factors that influence job, and occupational embeddedness.
In today’s evolving workplace, organisations must pay close attention to the factors that influence
employee retention and turnover, especially in critical skill areas. Understanding the psychological
contract, different forms of turnover, and the factors that support job and occupational embeddedness
is essential. At Nkomo Holdings, recent internal findings and ongoing challenges such as high
turnover and dissatisfaction with career development reflect deeper issues that relate directly to these
concepts.
The Psychological Contract
The psychological contract refers to the unwritten expectations between an employer and an
employee regarding aspects like pay, working conditions, recognition, and career advancement.
When employees perceive that these expectations are not being met—whether due to unfair
compensation, lack of support, or limited growth opportunities—they may feel betrayed or
undervalued, which negatively impacts motivation and retention (Coetzee, 2021). According to the
case study, Nkomo Holdings is experiencing these exact issues. The climate survey revealed
dissatisfaction with unclear performance expectations and perceived unfairness in pay
practices—both signs of a damaged psychological contract.
Forms of Turnover
Turnover occurs in different forms, with voluntary turnover being particularly costly. This happens
when competent employees choose to leave for better opportunities, often driven by unmet
expectations or more attractive offers elsewhere. Job hopping, common among mid-level managers
and young professionals, can be driven by both push factors—such as poor organisational culture or
lack of recognition—and pull factors like better career mobility or improved working conditions
(Coetzee, 2021). At Nkomo Holdings, high turnover among these employee groups suggests both
forms are present. Involuntary turnover, such as retrenchment, also impacts remaining staff by
lowering morale and commitment, further weakening the psychological contract.
