Do different times call for different measures? The psychological contract of the Millennial Generation in times of economic recession

Purpose – The purpose of this study was to investigate the effect of generational, contextual and individual influences on Millennials’ career expectations. Design/methodology/approach – Two matched samples of Millennials graduating in 2006 (n = 787) and 2009 (n = 825) filled out a questionnaire regarding their psychological contract expectations, career strategy and optimism about the labor market in completely different socio-economic contexts. Findings – Recession is related to lower levels of optimism. During times of recession, Millennials lower their expectations regarding the work-life balance and social atmosphere. However, their expectations regarding job content, training, career development and financial rewards remain high, suggesting that these expectations are largely embedded within the generation. Moreover, Millennials’ expectations are significantly influenced by individual variables, careerism and optimism. Implications – This study suggests that managers need to focus their limited resources during times of recession on meeting Millennials’ high expectations regarding their development and careers. Because violating these high expectations can have detrimental effects on a number of outcomes, organizations are encouraged to discover creative and inexpensive ways to provide Millennials with meaningful work, plenty of learning opportunities and career development. Originality/value – By comparing two matched samples of Millennials in two different situations, the present study was able to disentangle generational, contextual and individual influences on Millennials’ psychological contract expectations