Are traditional ideas of loyalty and commitment outdated in today's workplace? This paper examines how changes in dynamic business environments impact the psychological contract, the unwritten set of expectations between employees and organizations. A case study within a large Australian banking organization shows how traditional loyalty and continuance commitment are becoming less important as organizations pursue more transactional relationships with their employees and as employees are encouraged to pursue more self-interested “protean” careers. The study explores whether the “psychological contract” can provide a means of establishing effective relationships between organizations and their employees with increasing emphasis on self-serving personal and organizational strategies. This research concludes that the maintenance of psychological contracts still makes a vital contribution to organizational relationships, but organizations need to find ways to adjust the terms to meet the needs of an increasingly mobile and protean workforce. The author offers insight on how this could occur, while also providing an area of focus for continuing and future research.
Published in Career Development International, this article contributes to the journal’s focus on career management and organizational behavior. The exploration of psychological contracts in the context of changing workforce dynamics directly aligns with the journal's mission, providing insights for career development professionals and HR managers.