Positive and Relational Psychological Contract: An Employee Retention Tool

Abstract

With globalization, digitalization, and resultant integration of world economies; employee expectations have shown to change drastically. At present, mental and emotional satisfaction at the workplace is being equally stressed upon as the financial gains. Numerous researches point towards mental discontent being one of the reasons of employee attrition. This paper explores the informal and emotional side of employee expectations via the concept of Psychological Contracts. It attempts to identify a Positive Relational Psychological Contract as a technique of employee retention. The paper additionally lists several methods of building and preserving such a contract.