For her MBA thesis, last year Ellen Jansma, Head of International Mobility at Philips, researched the influence of expatriates’ ‘psychological contract’ on performance and satisfaction. She surveyed expatriates at Philips in an attempt to understand the different relationship expats have with the home organisation or headquarters combined with a different inter-dependency and a different need for support. This research focused on both the expat and his/her accompanying family.
Unwritten set of expectations
Along with a formal employment contract, expats have what is known as a ‘psychological contract’ with their employer or even with their partner – essentially, an unwritten set of expectations between the two parties. For expatriates such ‘contracts’ are important. When a family uproots its life to move to another country, they are incurring more risk than they would if they remained at home. Different employer obligations are considered part of this psychological contract, such as financial obligations, general support obligations, family-oriented support and assignment specific obligations.
Motivated to go the extra mile
If a company meets the implicit and explicit promises made, expatriate satisfaction should be positively influenced. The expatriate, if satisfied, should in turn be better motivated and more likely to go the extra mile, improving both their performance and their employer’s.
Limited attention to softer support
The research proved there is a relationship between perceived psychological contract breach and satisfaction, with no relationship to (self-rated) performance. Her thesis also indicates that some specific concerns or needs are determined by gender and age. Many years of reorganising, outsourcing and cost-cutting have resulted in limited attention to the ‘softer’ elements of support obligations. While this ‘far and away’ group of employees is taken care of, the importance of assignment-specific support, development and career support may have been undervalued. Ellen’s research could be a wake-up call for all multinationals.
