Total Rewards and the Potential Shift in Psychological Contract Perceptions in the Digital Era

2021 ◽  
pp. 223-244
Author(s):  
Mark Bussin
Keyword(s):  
Psychological Contract ◽  
Potential Shift ◽  
Digital Era ◽  
Total Rewards

Psychological Contract Fulfillment and Employee Responses to Pay System Change

2017 ◽  
Vol 16 (4) ◽  
pp. 172-185 ◽  
Author(s):  
Christine J. Syrek ◽  
Conny H. Antoni
Keyword(s):  
Transformational Leadership ◽  
Psychological Contract ◽  
Pay For Performance ◽  
Psychological Contracts ◽  
Change Processes ◽  
Affective Organizational Commitment ◽  
Before And After ◽  
Psychological Contract Fulfillment ◽  
Pay System ◽  
Employee Responses

Abstract. The implementation of a new pay system is a balancing act that produces uncertainty and draws employees’ attention to the fulfillment of exchange agreements. Transformational leadership may be essential during these change processes. Based on psychological contract theory, we expected that transformational leadership impacts job satisfaction and affective organizational commitment through the fulfillment of relational psychological contracts, while the fulfillment of transactional psychological contracts may be crucial for employees’ pay and bonus satisfaction. We assessed 143 employees nested within 34 teams before and after (24 months) a pay for performance (pfp) system was introduced. Our results supported the mediation hypotheses considering job and pay satisfaction, but not considering commitment. Unexpectedly, the effect on bonus satisfaction was mediated via relational psychological contracts.

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