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Aims and Objectives

PSYCONES aims to explore the impact of different kinds of employment contract on the psychological contract and on worker well-being. It is undertaken in the context of increasing employment flexibility and a growth in many European countries in the proportion of workers employed on temporary and fixed-term contracts. There is an assumption that workers employed on contracts of this type are significantly disadvantaged. Indeed European legislation has been introduced to improve the rights of workers on fixed-term contracts and there are continuing discussions about legislation to regulate temporary employment agencies.

In this context, the study is designed to explore the ways in which different kinds of employment contract affect the psychological contract, including its content and range; and how both employment contracts and the psychological contract affect worker well-being. The second major aim is to compare these effects across different countries and different employment sectors within Europe. The study therefore involves seven countries and focuses on national institutional differences; and three different sectors, food manufacturing, retail services and education.

The research is funded by the European Union. The seven countries involved are Belgium, Germany, Israel, The Netherlands, Spain, Sweden and the UK.

The Approach

The core analytic framework is built around the concept of the psychological contract. This is concerned with the reciprocal promises and commitments between the individual and the organisation. The study explores the nature of these, and the extent to which they are fulfilled among temporary and permanent workers. A core assumption is that organisations will be less concerned to meet their promises and commitments to temporary workers. It is further assumed that the psychological contract is likely to mediate the effects of the employment contract on workers’ well-being.

The methods adopted have centred around use of a structured questionnaire based largely on standardised measures. In addition, we collected information on structural features of the countries involved as a basis for exploring national institutional differences. Data have been collected from over 5000 workers of whom about a third are on various types of temporary contract. They are drawn from just over 200 organisations. In each of the organisations we collected data from a senior HR manager about employment policy and practices and about the organisation’s side of the psychological contract.

Preliminary Findings

Data collection has been completed. The preliminary findings indicate that temporary workers report a more limited psychological contract but also a more fulfilled contract. Furthermore, contrary to expectations, temporary workers report similar and frequently higher levels of well-being compared with permanent workers. This was found despite temporary workers reporting greater levels of job insecurity and being less likely to have their employment contract of choice. These findings apply in most countries. More detailed analysis is testing different explanations for these findings. However it is clear that the results have major policy implications.

Relevant Papers and Publications

Guest, D. (2004). “Flexible employment contracts, the psychological contract and employee outcomes: an analysis and review of the evidence”. International Journal of Management Reviews, 5/6, 1, 1-19.

Guest, D. (2006). “The flexible workforce and the psychological contract”. In R. Gandossy, E. Tucker & N. Verma (eds). Workforce Wake Up Call. New York: Wiley. pp. 87-94.

Guest, D. and Clinton, M. (2006). “Contracting in the UK: Current research evidence on the impact of flexible employment and the nature of psychological contracts”. In N. De Cuyper, K. Isaksson & H. De Witte (eds). Employment Contracts and Well-Being Among European Workers. Aldershot, Hants: Ashgate. pp. 201-224.

Guest, D. and Clinton, M. (2006). “Temporary employment contracts, workers’ well-being and behaviour: Evidence from the UK”. Dept of Management Working Paper 38. (available at www.kcl.uk/management/research/r_paper38.htm)

Researchers on the project

Professor David Guest

Michael Clinton

Research Partners

University of Leuven

University of Valencia

Bar Ilan University

Institute of Working Life, Sweden

Tilburg University

Leipzig University

PSYCONES project web page