Knowing Me is the Key: Implications of Anticipatory Psychological Contract for Millennials’ Retention

Abstract

Millennial talents are an important source of competitive advantage in an increasingly digitalized and globalized business environment. However, many employers report challenges related to attracting, managing and especially retaining young talents. Often, individual preferences and needs are not known and(or) sufficiently considered, which creates tensions and increases the risk of losing young talents. We explore Millennials’ employment expectations with the anticipatory psychological contract in two under investigated contexts—Central and Eastern Europe and East Asia. A quantitative research design is used to analyse the features of anticipatory psychological contract, employing samples of undergraduate business students. Findings reveal that Millennials prefer balanced types of anticipatory psychological contract for both employee and employer obligations, followed by relational and transactional types. The analysis uncovered certain regional differences as well. In addition, potential psychological contract breach situations are identified for a Slovenian sample when comparing students’ and employers’ expectations. Based on these insights we propose relevant retention strategies and practices for young talent retention.