A study on the relationship between psychological contract and student retention among undergraduate student in UiTM Selangor Branch

Malaysia is one of the best developing countries for studying due to its affordable education, diverse culture, and growing reputation for academic excellence. Although many efforts have been implemented and planned to make Malaysia one of the top countries in education systems, there are still a few problems that have not been completely solved. One of the problems is retention problems among students. The purpose of this study is to investigate the relationship between psychological contract and student retention. The research design for this study used quantitative method of non-probability sampling, with 352 participated during the data collection process. The questionnaire was distributed virtually and physically. The development of the questionnaire has been made using the theory of psychological contract (relational contract, balanced contract, transactional contract, transitional contract) and student retention. Questions were adapted from an established questionnaire, where modification of questions were made to create a new set of questionnaires that fits into this research setting. From the data collected, the researcher used different types of analysis to understand how the determinants affect the student retention decision. The findings of this research will provide useful insights for academic staffs and faculty members who desire to help students remain longer in educational institutions throughout their educational journeys. This study revealed that there is a significant relationship between psychological contract and student retention, specifically in public higher education institutions in Malaysia.