The Role of Psychological Contracts in Recruitment and Retention
William H. Turnley Kansas State University
Military Personnel Research Conference June 5, 2002
Introduction
Recent Recruitment and Retention Challenges Strong economy Low unemployment Propensity of high school graduates to enter college
Why study psychological contracts? Increasingly important in defining the employment relationship
Psychological Contracts
consist of the beliefs employees hold regarding the terms and conditions of the exchange relationship between themselves and their organizations
define what individuals expect to contribute to the organization and what they expect to receive in return
Prior Research on Psychological Contracts Has generally focused on two areas:
the changing nature of the psychological contract and the decline of mutual loyalty between employees and employers
consequences of psychological contract breach on employees’ work attitudes and behaviors
Goals of this Research Project
This research focuses on several issues related to the development and maintenance of psychological contacts:
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how psychological contracts are formed (promises communicated by various sources) the extent to which applicants distort information about themselves in the recruitment process how the accuracy of information provided (by both organizations and individuals) impacts motivation, commitment, turnover, and performance how the attributions that individuals make when their psychological contracts are breached impact their reactions to such occurrences
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Study 1 – Brief Overview
A longitudinal study that examines how psychological contracts develop during the recruitment process and the extent to which psychological contract fulfillment impacts employees’ attitudes and behaviors during the initial year of employment
Approach Recently graduated university students were initially surveyed after having accepted a job but before they had started to work. These same individuals will be surveyed after they have completed their first year of work.
Study 1 – Brief Overview (continued)
Time 1 Survey (At hiring)
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Data collected on: Implicit and explicit promises made by organizational agents How the promises were communicated The extent to which individuals distorted info about themselves Perceptions of person-job fit
Time 2 Survey (Approximately 1 year later)
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Data to be collected on: Extent of psychological contract breach
Study 1 – Brief Overview (continued)
Status Time 1 data has been collected from approximately 150 individuals. Time 2 data collection will begin later this summer.
Study 2 -- Objectives
Examine Antecedents of Psychological Contract Breach Individual Differences Relationship Quality Supervisor-Subordinate Similarity
Examine psychological contracts for African-Americans Hispanic-Americans
Examine Consequences of Psychological Contract Breach In-Role Performance Extra-Role Performance
Study 2 - Procedure
Approach Surveyed existing supervisor-subordinate dyads Samples chosen to provide access to African-American and Hispanic-American respondents
Two Samples PhD Project Participants 138 respondents (29% response rate) 69% African-American, 31% Hispanic-American 62% Female County Government in New Mexico 109 respondents (25% response rate) 70% Hispanic-American, 30% Caucasian 57% Female
Model Individual Differences
Relationships
Similarity
Psychological Contract Breach
Performance • In-role Performance • Extra-role Performance
Antecedents of Psychological Contract Breach
Individual Differences Affective Disposition Equity Sensitivity
Relationship Quality Perceived Organizational Support Leader-Member Exchange
Similarity
Supervisor-Subordinate Demographic Similarity
Individual Differences
Affective Disposition H1: Negative affective disposition will be positively related to the perception of PCB. - H1 supported.
Equity Sensitivity H2: Benevolent individuals will be less likely than entitled individuals to perceive PCB. - H2 supported.
Relationship Quality
Perceived Organizational Support H3: Perceived organizational support will be negatively related to the perception of PCB. - H3 supported.
Leader-Member Exchange H4: In-group members will be less likely than outgroup members to perceive PCB. - H4 supported.
Supervisor-Subordinate Similarity
Relational Demography - Similarity Attraction Paradigm
H5: Mixed gender dyads - H5 not supported.
H6: Mixed race dyads - H6 only partially supported.
H7: Age difference - H7 not supported.
Outcomes of Psychological Contract Breach
Social Exchange Theory
In-role Work Performance H8: Psychological contract breach will be negatively related to in-role performance. - H8 supported.
Extra-role Work Performance H9: Psychological contract breach will be negatively related to the performance of organizational citizenship behaviors. - H9 supported.
Implications
Individual personality differences matter
Relationship quality matters at multiple levels Organizational level Supervisor-Subordinate level
Supervisor-Subordinate relational demography generally does not matter However, the subordinate’s gender and race do matter Women and racial minorities are more likely to perceive pcb
Both in-role and extra-role work performance is negatively impacted by psychological contract breach