Exploring the Impact of the Psychological Contract on the Well-being of the New Generation of Employees in the Chinese Context

Abstract

The fulfilment of the psychological contract is an exchange of reciprocity and benefits, making employees feel that their needs and expectations are met, thus enhancing their well-being. As the new generation of employees flourishes and becomes the central human resource of Chinese organisations, the effect of the psychological contract on them is even more worth discussing. This study considered the mediating role of perceived employability and the moderating role of non-traditional work patterns to construct a model of the relationship between psychological contracts and employee well-being. This study collected and analysed data from 300 younger-generation employees from China through an online questionnaire. The study's results indicate that psychological contracts have a significant positive effect on employee well-being. Perceived employability produced a partial mediating effect. Non-traditional work patterns negatively moderated the positive influence relationship between the psychological contract and employee well-being. This study may not be able to track the long-term impact of the psychological contract on the well-being of young employees and is limited to the Chinese context. However, these findings enrich the psychological contract research and provide HR practitioners, employers, and employees with valuable references for management practices.