PERCEIVED TALENT MANAGEMENT PRACTICES AND PSYCHOLOGICAL CONTRACT FULFILLMENT AMONG BANKING EMPLOYEES: THE MEDIATING ROLE OF INDIVIDUALISM AND COLLECTIVISM

Abstract

This study focuses on the recent quantitative findings to diagnose the relation between employees' perceptions of talent management practices (PTM) and their psychological contracts (PC) with banks in Pakistan. We use descriptive statistics, correlations, t-test, and Hierarchical Regression (mediation) analyses with data from a cross-sectional survey of 552 bank employees. Results suggest that there is a high positive correlation between PTM and employer's PC (e.g. β≈0.55, p<.0. Importantly, there are significant differences by work-value orientation: employees with an individualistic cultural orientation report significantly higher PC fulfillment (M=3.95) than employees with a collectivistic cultural orientation (M=3.65; t=7.05, p<.001). A mediation analysis shows that the relationship between PTM and PC is partially mediated by collectivism: PTM is a positive predictor of collectivism orientation (β=0.337, p<.01) and collectivism is a positive predictor of PC (β=0.319, p<.01) after controlling for PTM. In contrast, the effects of individualism are not significant in this relationship (β≈0.10). The results of this research confirm earlier studies in similar settings and demonstrate the importance of inclusive talent practices for the psychological contract, particularly for those staff who are collectivist oriented. Policy implications are to customize TM strategies for workforce diversity and strengthen employer responsibilities to increase reciprocity of employees.