Empirical Evidence on Awareness of Psychological Contract amongst Prospective Employees

The Psychological Contract is quite different to a physical contract or document it represents the notion of ‘relationship’ or ‘trust’ or ‘understanding’ which can exist for one or a number of employees.. As the competition in the labour market has intensified the so called ‘war for talent’ has begun and companies are showing an ever increasing interest in strategies to differentiate themselves in order to attract a highly skilled and talented workforce. To aid this it's important to understand the importance of psychological contract as a form of employment relationship and its relationship with other elements of the organizational environment. The study is empirically conducted by collecting the data from prospective employees and analyzing it through SPSS and ANOVA to find the awareness of psychological contract amongst prospective employees and find the difference in the definitions of psychological contract amongst males and females and their place of residence. It looks at how a strong formation of psychological contract can have an impact on the employment relationship in the minds of the prospective employees and how their elemental belief can have impact on the employer branding of the organizations.