Psychological Contract and Young Talent Retention in Vietnam: Development and Validation of a Hierarchical Reflective Structural Model

Ngan Dam, Dieu Hack-Polay, Mahfuzur Rahman and Ali B. Mahmoud
Additional contact information
Ngan Dam: Global Pareto, Hamilton House, 9 Hucknall Road, Nottingham NG5 1AE, UK
Dieu Hack-Polay: Department of Graduate Studies, Crandall University, Moncton, NB E1G 3H9, Canada
Ali B. Mahmoud: The Peter J. Tobin College of Business, St. John’s University, 8000 Utopia Parkway, Queens, NY 11439, USA

Businesses, 2023, vol. 3, issue 1, 1-16

Abstract: This research investigates the relationship between relational psychological contract and the retention of young talents in Vietnam. The study surveyed young employees pertaining to (Generations Y and Z) at BBB Company. The results show an equal weight of transactional and relational psychological contracts in the job satisfaction and retention of young Vietnamese employees. The research compared the relative importance of future growth potential against existing good practices. The results indicate that these two constructs have equal importance, as the value for r square is almost equal. This suggests that from a strategic standpoint Human Resource Management (HRM) ought to prioritise the development of practices that enhance both relational and transactional psychological contracts among young talents in Vietnam. This derives from a cultural transition, which means that both the weights of national culture and globalisation are influencing the choices and loyalty of the younger generations in the workplace. These findings have significant implications for the understanding of how generational differences and culture influence how a company retains their young talents and the importance of psychological contract for young employee commitment in Vietnam in an increasingly competitive environment.

Keywords: generation Y; generation Z; millennials; transactional psychological contract; relational psychological contract; retention; Vietnam (search for similar items in EconPapers)
JEL-codes: A1 D0 D4 D6 D7 D8 D9 E0 E2 E3 E4 E5 E6 E7 F0 F2 F3 F4 F5 F6 G0 G1 G2 H0 J0 K2 L0 L1 L2 M0 M1 M2 M3 M4 M5 N0 N1 N2 O0 O1 P0 (search for similar items in EconPapers)
Date: 2023
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (1)

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