Is diversity debate farfetched? Psychological contract expectations, performance and intention to stay

Abstract

PurposeThe purpose of the study is to understand whether psychological contract (PC) expectations manifest differently for diversity clusters of gender, physical disability and region in relation to job performance and intention to stay.Design/methodology/approachIt is a survey-based study. Data from 1,065 information technology and business process management professionals were analysed using partial least square based structural equation model (PLS-SEM) and multigroup analysis.FindingsThe met PC expectations related to career growth and development impact performance and are influenced by regional diversity. The met PC expectations related to job and work environment impact the intention to stay. Gender and physical disability do not influence any relationship.Research limitations/implicationsThe findings related to physical disability are based on a small sample of 60 employees. This could be reflective of their actual participation in the workplace.Practical implicationsNo significant differences were found between men and women employees with/without physically disability. However, regional diversity creates significant differences. Diversity policies should reckon these similarities/differences while viewing requirements of job performance and determinants of intention to stay.Social implicationsOne needs to be careful while assuming diversity as a heterogeneous phenomenon. The reality could reflect both differences and similarities. Diverse employee groups having a common set of expectations is a socially positive evolution connoting better social integration.Originality/valueThis article is one of the first to research the influence of gender, physical disability and regional diversity on PC and its outcomes in India. Regional diversity has not been studied based on this framework and this adds to the body of knowledge.