Psychological Contract: Measuring the Impact of Employers’ Inducements and Expectations on Employees’ Work-Life Balance and Loyalty

Abstract

This study seeks to measure impact of employers’ inducements to and expectations from employees through structural equation modeling (SEM). Drawing upon 160 self-administered questionnaires completed by senior to junior managers from healthcare, banking and IT sectors, this study predicts employers’ inducements as directly proportional to work-life balance and loyalty at work. Likewise,, the absence of employers inducements and expecting more from employees is inversely proportional to work-life balance and loyalty. Study offers policy implications for employers, managers and decision-making quarters to establish balance between inducements and expectations from employees for better work-life balance and earning loyalty of employees.