Social exchange theory and volunteer relationships: understanding volunteer exchange relationships through the lens of the psychological contract

A key premise of social exchange theory (SET) is that individuals engage in exchange agreements to gain certain intrinsic or extrinsic rewards (Blau, 1964). In such relationships, individuals contribute resources—such as time and effort—in exchange for inducements, such as money or learning opportunities, provided by another party. This dynamic has frequently been explored through the concept of the psychological contract, which reflects the perceived mutual obligations between two parties (Rousseau, 1989). While much of the research over recent decades has focused on applying psychological contract theory to the relationships between employees and employers, growing attention is being paid to its relevance in non-traditional exchange relationships, such as those between volunteers and non-profit organizations (Hoye & Kappelides, 2021; Nichols, 2013). But can volunteers possess a psychological contract? After all, one of the fundamental differences between volunteers and employees is that volunteers typically do not expect financial rewards (Farmer & Fedor, 1999). Additionally, volunteers are often seen as altruistic, implying that they may not seek tangible returns for their contributions (Carpenter & Myers, 2010). However, decades of research clearly show that volunteers do, in fact, develop and maintain psychological contracts, which strongly influence their attitudes and behaviors. In fact, psychological contracts may be even more crucial for volunteers than for employees, as volunteers often operate within ambiguous, uncertain, and informal exchange relationships (Vantilborgh & Van Puyvelde, 2018). This chapter aims to provide an overview of how SET has been applied to volunteer relationships through the lens of psychological contracts.
Volunteers are the backbone of many non-profit organizations (Forner et al., 2024). However, many non-profits face significant challenges in retaining volunteers and consistently providing services to their beneficiaries (Vantilborgh & Van Puyvelde, 2018). According to reports from the United Nations Volunteers program, 44 percent of the global volunteer workforce ceased their activities between 2018 and 2021 (United Nations Volunteers programme, 2018, 2021). While the COVID-19 pandemic likely exacerbated this retention issue, it is clear that volunteer retention has long been a challenge for non-profits, largely because volunteers are not bound by formal contracts (Farmer & Fedor, 1999). This lack of binding agreements allows volunteers the freedom to offer their time and effort to organizations (Cnaan & Cascio, 1998), but it also means they can just as easily choose to withdraw their participation without notice (Forner et al., 2024). A recent meta-analysis highlights the psychological contract as one of the most powerful predictors of volunteer retention (Forner et al., 2024). As discussed in this chapter, understanding the mutual obligations volunteers perceive in their relationship with the organization (i.e., psychological contract content) and how they respond to the fulfillment or breach of these obligations (i.e., psychological contract processes) is essential for effective volunteer management.
This chapter is organized into two main parts. First, we provide an overview of the literature on volunteers’ psychological contracts, examining studies that explore both the content and processes of these contracts. Additionally, we address the differences between volunteers and employees, as well as how psychological contract content and processes interact. In the second part, we present a research agenda for future studies on volunteers’ psychological contracts. We argue that understanding volunteer exchange relationships requires careful consideration of the unique characteristics of volunteering and the diversity within civil society organizations that rely on volunteers. Our central hypothesis is that applying models and insights from research on employees to volunteer contexts should be approached cautiously, as this may result in mismatches between theory and practice, as well as counterproductive management recommendations. Finally, we discuss key insights and challenges in the study of volunteers’ psychological contracts, emphasizing what researchers focusing on both volunteer and employment contexts can learn from each other.