A career stage perspective on employees' preferred psychological contract contributions and inducements

Abstract

The employer–employee relationship is underpinned by a psychological contract, which refers to employee beliefs about the exchange of employee contributions and employer inducements. However, there is limited understanding of how employers can shape psychological contracts to meet employees' needs and aspirations. Meeting these needs starts with an understanding of employees' preferences for psychological contract contributions and inducements. We propose that career stage models can be used to achieve that understanding. Using the career stage models of Dalton, Thompson, and Price (1977) and Super (1957), we derive insights into the preferred contributions and inducements, respectively, at various points of an employee's career lifecycle. These insights will help organizations create desirable psychological contracts and retain valued employees.