the Psychology of defined-benefit pensions: when do they affect employee behavior?

Deskripsi

Psychological contract between employees and employers, focusing on whether pensions are viewed as transactional (control mechanisms) or relational (expressions of loyalty). Surveying over 400 unionized public utility employees, the study found that when employees perceived pensions as transactional, their work effort, performance, and organizational citizenship behaviors declined. Conversely, relational perceptions led to positive outcomes. Notably, the financial "cost of quitting" (lost pension benefits) had no direct impact on retention intentions, highlighting the primacy of psychological framing over monetary calculations. For managers, the key takeaway is that pension plans must balance financial sustainability with fostering relational psychological contracts to maximize employee engagement and organizational performance.