EXPATRIATES’ PSYCHOLOGICAL CONTRACT: A FUNCTION OF THEIR COMPENSATION PACKAGE?
Christelle Tornikoski, PhD Student in IHRM, University of Vaasa, Finland & EM-Lyon Business School, France
Zied Guedri, Assistant Professor in Strategic Management, EM-Lyon Business School, France

Abstract
This study examines the relationship between the value ascribed by expatriates to the compensation package which they received from their employer in exchange of their work and the perception they have of their reciprocal employment obligations. From a theoretical point of view the expatriate compensation package is both conceptualized as a total reward package and the traditional expatriate (financial) compensation package. The analysis validates 10 out of the 15 hypotheses drawn upon the works by Rousseau and Ho (2000), and by Janssens, Sels, and Van den Brande (2003). The two main outcomes of this study are that the non-financial component of the total reward package seems to have a stronger and broader impact on perceived employment obligations than the financial component and, that surprisingly the higher the perceived value of the total reward package the more expatriates are inclined to look for another company to go on with their career.
Keywords: expatriates, psychological contract, compensation bundle, total rewards