1. 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

2. 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).
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3. 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
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4. 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!
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5. 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...
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6. 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.
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7. for an overview of completed and ongoing studies, check out:
Feedback? Questions?
for an overview of completed and ongoing studies, check out:
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