What do you remember about the best boss you ever had? What was it that they contributed to you having a great working relationship? They probably had the knack of motivating you, of making you feel part of a team, of inspiring in you a desire to be the best you could be. You may not have known the term at the time, but a lot of what you felt was down to the unwritten ‘psychological contract’ that existed between the two of you.
So, what are we referring to when we talk about the psychological contract? Simply put, it’s the balance of expectations and promises that exist between manager and team member: “Here is what we expect from each other, and here is what we promise to give in return.” Unlike a legal contract, the psychological contract is informal, un-enforceable and often implied, not explicitly stated. It covers things like flexibility, development and recognition, and is far more influential on your day-to-day working life than you might imagine. It’s not fixed and the “conditions” change throughout an employee’s life cycle. For this reason it’s something that needs to be explored regularly to make sure things are on track.
A psychological contract is a balancing act between a manager and a team member. Take the time and effort to really explore the unique working preferences and needs of each team member. Some days the contract will be fully functioning, other days it will come under pressure. The secret is to keep talking. When you start working together, sit down, have a conversation and explore what you both need from each other. Many managers assume their employees work in the same way as they do, but don’t assume – ask. Everyone is different. Invest the time in building your understanding. Be explicit about your own expectations as well. What matters to you? What you would like to see from your team member?
The psychological contract is fragile – so be careful not to chip away at its foundations. It is easier to damage than build: not acknowledging someone in the morning, not replying to an email in a timely fashion, or giving difficult feedback in front of others can leave your psychological contract bruised and even broken.
The world of work is changing faster than at any time since the Industrial Revolution. The rise of flexible and more fluid forms of working and rapid technological change means that psychological contracts, which were always easy to breach, require greater scrutiny and upkeep. Employee priorities may be ever-changing, but remember that broken promises always lead to recruitment and retention problems.
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