1 The Significance of HRD for Young and Older Employees A Psychological Contract Perspective

This paper explores the significance of human resource development (HRD) practices and opportunities for young (under 35 years) and older (over 50 years) employees. The aim is to clarify how HRD contributes to establishing a positive psychological contract between the employee and organisation and what the benefits of investing in HRD are for organisations. Until recently, most of the HR literature has devoted little empirical attention to the way in which employee perceptions and attitudes influence HRD effectiveness (Santos & Stuart 2003; Rainbird & Munro 2003). In this paper a psychological contract perspective is used to conceptualise the employment relationship between employee and organisation by using notions of expectations and perceptions in terms of HRD as its determinants (see e.g. Garavan. et al. 2000, 66). The article begins by constructing a theoretical framework for clarifying the role and contribution of HRD in the context of a psychological contract. After this the key findings of a qualitative study conducted in four large Finnish companies are reported and discussed in relation to the theoretical framework