From Younger to Older Workers: Goals, Tenure and the Psychological Contract

Abstract

The study explains the goals’ based formation of relational PC (objective-1) differently for younger and older workers at shorter and longer tenures (objective-2). Hypotheses were developed lensing through SPF and PC theories. Moderated moderation of tenure by age on association between workers’ goals and relational contract were tested using multiple regression, on a sample of 538 employees from agriculture universities of Pakistan. The study found that older workers develop relational contract in pursuance to goals of comfort, stimulation and status, while younger to achieve comfort and stimulation only (objective-1). Further, based on goals of comfort and stimulation, the relational contract of younger workers remains strongest at shorter tenure, while the older workers’ remains strongest at longer tenure (objective-2). Finally, the older workers also develop stronger relational contract at longer tenure to achieve goal of status (objective-2). Based on findings, the study suggests some practical implications for employers that can be considered while devising HR policies (objective-3). Keywords: Psychological Contract, Employee Relations, Age, Job Tenure, Goals, Social Production Function