The influence of age on psychological contract: Understanding employee expectations across career stages

The psychological contract, that is, an unwritten set of mutual expectations between employees and employers, changes over the course of people’s career stages. In this study the nature, expectations and fulfilment of the psychological contract deal with the workplace are examined as they are affected by age. The research analyses how younger, mid-, and senior employees see the issues of job security, career development, employer obligations, and organizational support to gain insights into changing dynamics of psychological contracts. To investigate the impact of age on the fulfilment of psychological contract, a quantitative research approach based on data collected from the employees of a reputed Automobile Industry has been used. The findings have an important implication—that different expectations and work priorities make age-sensitive HR policies important across employees’ career. This study adds to the strategic contribution of HRM by providing suggestions for improving workforce stability and employee satisfaction by using effective management of psychological contracts.