An analysis of talent management practices of recently hired employees from the perspective of the psychological contract

This research took the form of an explanatory case study focused within a single organisation to evaluate talent management practices of recently hired employees from the perspective of the psychological contract. The theory underpinning this research is Resource-Based Theory (RBT) in the context of Talent Management. The research aims were: 1) to analyse how talent management practices have affected the psychological contract, 2) to analyse how employees have responded and intend to respond if there has been a breach in the contract and 3) to analyse how employees have responded or intend to respond where psychological contract expectations have been met. The key concepts identified include talent management and the psychological contract. The literature therefore expanded on talent management highlighting the importance of recruiting, attracting and retaining talent, especially in a global context where experience and skills are a source of competitive advantage. Following this, the concept of the psychological contract was used as a lens through which to analyse the experience of individuals, specifically focusing on new employees joining the organisation, to assess their socialisation and onboarding experience. The literature further explored the importance of focusing on new employees, as this is deemed by the literature as a critical time of transition in the shaping of the psychological contract. In further reviewing the literature regarding early onboarding, further review of the literature identified important components, including (1) socialisation and onboarding, (2) performance management and probation, (3) employee development and (4) work conditions. From reviewing the literature four propositions were deduced as follows: • Proposition 1: All integrative processes in early onboarding influence the initial psychological contract of the employee. Proposition 1 was further divided into three sub propositions as follows: Sub Proposition 1a) HR plays a key role in early onboarding, influencing the initial psychological contract; Sub Proposition 1b) Supervisor support plays a key role in early onboarding, influencing the initial psychological contract; and IV Sub Proposition 1c) The work team plays a key role in early onboarding, influencing the initial psychological contract. • Proposition 2 stated: Performance discussions influence the psychological contract. • Proposition 3: Employee development opportunities are a source of motivation in the fulfilment of the psychological contract. • Proposition 4: Employment conditions influence the fulfilment of the psychological contract. The research followed a qualitative approach, using deductive analysis to analyse the data collected from semi-structured interviews. The findings and discussion show that the propositions confirmed the literature and were relevant to the case study at hand. Where there was varying degree of experience regarding the effect of the influence or impact on the psychological contract this was noted and expanded on accordingly. The study also recognised the additional context that presented itself within the findings, namely the context of the COVID-19 pandemic. The research concludes in acknowledging the delimitations and limitations of the study while making suggestions for areas of future studies. To conclude, this research shows that the transition of a new employee in their early stages within the organisation is an opportunity to support in positively influencing and maintaining the psychological contract to support employee satisfaction and motivation. If organisations can also appreciate that the psychological contract is dynamic and can change over time based on changing circumstances or needs, then this can be proactively monitored to support long-term retention of talent.Thesis (MBA) -- Faculty of Commerce, Rhodes Business School, 202