Talent management and the psychological contract

Abstract

Orientation – Talent Management Practices and the Psychological Contract are two distinct constructs and it appears that Talent Management influences the Psychological Contract, with the result being a stronger Psychological Contract. Research Purpose – The study aims to determine the relationship between Talent Management and the Psychological Contract. Motivation for the Study – The world of work and the Psychological Contract have changed. Employees value knowledge, skills and experience more than being loyal to an organisation. Today, turnover is a lot higher than it was a few years ago. Talent Management may be a successful intervention to strengthen the Psychological Contract. Research Design, Approach and Method – Two instruments, namely Talent Practices and the Psychological Contract Inventory, were administered online and paper-based to a sample of 556 employees in Pretoria and Centurion. 102 completed questionnaires were obtained. Responses were analysed using quantitative techniques and correlation analysis. Main Findings – Results confirm that generally good Talent Management practices are associated with a positive Psychological Contract. Practical / Managerial Implications – The study provides evidence that management can use Talent Management Practices to strengthen the Psychological Contract, leading to lower turnover, improved motivation and productivity, loyalty, etc. The study therefore emphasises that it is important for management to implement Talent Management Practices. Contribution / Value Add – The findings of the study indicate a generally positive relationship between Talent Management and the Psychological Contract. The study focuses -on the importance of implementing Talent Management practices in order to strengthen the Psychological Contract.