Trust is a cornerstone of effective organizational functioning through employee performance. This study investigates the dynamic nature of trust, focusing on how psychological contract breach—a perception that an organization has failed to meet its obligations—predicts divergent trust trajectories and their implications for task accuracy. Drawing on social exchange theory and attribution theory, we argue that breaches negatively influence trust trajectories by lowering baseline trust and hindering its positive development. Using latent class growth modeling across four bi-annual measurement points among 1,135 Belgian employees, we identified two distinct trust trajectories: trust accumulation (13.13%) and trust erosion (86.87%). Psychological contract breach significantly predicted the growth parameters of these trajectories, accelerating trust erosion and dampening trust accumulation. Moreover, these trust trajectories were linked to performance: employees in the trust accumulation trajectory exhibited significantly higher task accuracy rates compared to those in the trust erosion trajectory. The findings contribute to psychological contract and trust literatures by emphasizing the temporal dynamics of trust and the heterogeneous impacts of breaches. Practically, the study underscores the importance of trust-focused interventions to mitigate breach effects and enhance performance outcomes. Proactive trust management and tailored organizational strategies are vital for fostering resilient, high-performing teams, even in challenging environments.
