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“old” vs. “new” psychological contract

The psychological contracts of ‘high potential’ employees: Does organizational (over)investment pay off? Nicky Dries, Elke Van Roy & Roland Pepermans Academy Of Management Meeting August 15 th , 2011. “old” vs. “new” psychological contract. Employer. Employee. Internal career prospects.

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“old” vs. “new” psychological contract

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  1. The psychological contracts of ‘high potential’ employees:Does organizational (over)investment pay off?Nicky Dries, Elke Van Roy & Roland PepermansAcademy Of Management MeetingAugust 15th, 2011

  2. “old” vs. “new” psychological contract Employer Employee Internal career prospects Loyalty Employability development Ongoing contribution

  3. HR differentiation (adapted from Lepak & Snell, 1999)

  4. The psychology of TM Woohoo! Heading for burn-out…. We’re set for life! I wonder what the organization has in store for me next…! Are my skills truly appreciated here? I wish I had more job security…. Does this mean my potential is low…? This is unfair!

  5. Social exchange mechanisms

  6. Social exchange mechanisms Employee-organization relationship: - Mutual high investment - Mutual low investment - Organizational overinvestment - Organizational underinvestment (Tsui et al., 1997) Organizational membership: - Peripheral membership - Associate membership - Detached membership - Full membership (Stamper, Masterson & Knapp, 2009)

  7. Method Employment relationship Organizational commitment Organization-assigned talent category Intention to stay

  8. Results 1 = mutual high 2 = mutual low 3 = org. overinvestment 4 = org. underinvestment Employment relationship Organizational commitment Organization-assigned talent category Intention to stay 0 = non-high potential 1 = high potential

  9. Implications For research: - More empirical data to support ‘new’ career claims (+ examine contingencies!); - More research into the nature and effects of differential HR architectures/workforce segmentation; - Role of bargaining power in psychological contracts? - Links between talent management and ‘i-deals’? For employees: - Look into organization’s talent management policies (often intransparent); - Be proactive/realistic, not reactive/naive; - Maintain external employability (as back-up strategy). For organizations: - Monitor balance/”give and take”; - Eliteness of the system = a strategic choice! (Matthew >< Mark effect); Positive effects of employee segmentation: more deliberate use of resources; higher ROI; shows that there are internal career opportunities Negative effects of employee segmentation: competitive climate, perceived injustice, learned helplessness

  10. Input?Questions?Contact me:nicky.dries@econ.kuleuven.be+32.16.32.68.68.

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