Are they getting the better deal? Psychological contracts of high potential employees: Are they getting the better deal? - Nicky Dries - Dutch HRM Network November 13th, 2009

Introduction Employability = “a host of person-centered constructs that combine synergistically to help workers effectively adapt to the myriad of work-related changes occurring in today’s economy” (Fugate, Kinicki & Ashfort, 2004, p. 15). Psychological contract (PC) = “an individual’s beliefs regarding the terms and conditions of a reciprocal exchange agreement between the focal person and another party. Key issues here include the belief that a promise has been made and a consideration offered in exchange for it, binding the parties to some set of reciprocal obligations” (Rousseau, 1989, p. 123). Assumptions in the literature: > more employable employees are less focused on job security and a long-term future with their employer; > more firm-specific capital (e.g. being identified as a ‘high potential’, being long-tenured) increases employees’ bargaining position in terms of obtaining a spot in the organization’s ‘core’ (i.e. traditional career). Dutch HRM Network November 13th, 2009 | pag. 2

Hypotheses organizational tenure employability perceived PC obligations organizational tenure talent category employee side employer side relational balanced transactional high potentials non-high potentials interaction main interaction Dutch HRM Network November 13th, 2009 | pag. 3 3

Methods 5 large Belgian organizations respondents: N = 103 high potentials: N = 49 non-high potentials: N = 54 “discrete” survey procedure study timeframe (Nov. ’08 – Feb. ’09) > global economic crisis! Dutch HRM Network November 13th, 2009 | pag. 4 4

Results employee obligations relational balanced transactional employability + - talent category - interaction - main (no effect) org. tenure employee obligations relational balanced transactional employability + (no effect) talent category + main - main org. tenure + interaction >> overall: relationships are less straightforward and more complex than we would expect based on the literature... Dutch HRM Network November 13th, 2009 | pag. 5 5

Discussion Main findings Employment security is not perceived as an adequate replacement of job security: - Employability does encourage people to do ‘more than just their jobs’; - Employability does not decrease perceived relational obligations; - Employability is not perceived to substitute for organizational career management. Moderation effects were inconsistent with our hypotheses; we did, however, find some support for employee bargaining position shaping the PC: - Employability adds to the bargaining position of employees to obtain stable employment (especially in times of crisis); - High potentials and long-tenured employees perceive stronger employer obligations to provide job security, but do not feel more obliged themselves to stay with their employer. Dutch HRM Network November 13th, 2009 | pag. 6 6

for an overview of completed and ongoing studies, check out: Feedback? Questions? nicky.dries@vub.ac.be for an overview of completed and ongoing studies, check out: http://homepages.vub.ac.be/~ndries/ Dutch HRM Network November 13th, 2009 | pag. 7