Analysis: In the world of work where contracts are signed and terms negotiated, there's another agreement that often goes unspoken
By Olivia O'Leary, UCC
In the world of work where contracts are signed and terms negotiated, another agreement often goes unspoken yet profoundly influences our employment relationship. This agreement is known as the psychological contract, which surrounds the implicit expectations and obligations that we have at work. What makes it even more interesting is that it is a contract, mainly between two parties, the employee and the employer, whereby both have perceived agreements and promises to uphold.
The psychological contract is different from the formal, written employment contract. It is not legally binding and is built upon your own beliefs, perceptions, and expectations about your roles, responsibilities, and treatment at work. While the formal contract outlines the basic terms of employment, such as salary, benefits, and job duties, the psychological contract can include more emotional and social aspects of the work relationship.
One of the biggest complexities we face as people in the workplace is understanding what we truly want from work: our expectations or obligations – but do these need to remain an unsolved mystery? Have you been promised something that has yet to come to fruition? Have you been promised a promotion (at least you think you have been), and you're working extra hard to fulfil your side of the bargain? Why does it irk us so much if we don’t get what we expected? Our psychological contracts.
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While monitoring our behaviour, they also influence our emotions. Whether fulfilling (positive) the terms of the psychological contract or breaching (negative) the terms of the psychological contract, our natural reaction is to react.
At its core, the psychological contract is built on mutual trust, respect, and reciprocity. As employees, we expect fair treatment, recognition for our contributions, opportunities for growth and development, and a supportive work environment. In return, employers expect us as employees to perform our duties competently, show loyalty to the organisation, and align with its values and goals.
When these expectations are met, a favourable psychological contract is established, leading to increased job satisfaction, commitment, and engagement. However, when there is a breach of the psychological contract—such as unfulfilled promises, perceived unfair treatment, or lack of support—it can result in feelings of disillusionment, resentment, and disengagement. It can really affect our morale.
Read more: Why do people stay in bad jobs?
Therefore, as individuals, we monitor our behaviour based on the psychological contract, and we work towards meeting the terms of the agreement. We work hard (to get that promotion) when our psychological contracts are positive (got the promotion!). We withdraw when it's negative (someone else got it). When is the time to quit? When it’s hit the point of full dissolution (get me out of here!).
But listen, we all have our own work journey. This means we all have our own map of experience. This brain map means different things to different people. Whether vocationally-based or experience-based, this map is the lens through which we build and view our expectations at work. Therefore, as individuals, we establish our own meaning of work.
It’s also the map that we use to view our misalignments. Have you been burned at work before? Has something happened in your new role that triggered old emotions? Precisely, this map doesn’t go away. It gets more decorated as we move through our careers. That’s what makes our psychological contracts so unique. It's ours, and no two are the same. So, let’s pause for a moment and reflect.
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Have you ever questioned why your meaning of work may be so different to your friends and family? Do you have the same expectations or motivations in work as your colleagues? Are they different? The answer is yes. Each individual has their own understanding of work built around implicit promises and expectations, which makes our understanding of the working relationship so individual and unique.
Let’s pause again. Has the way we think about work changed? Has the meaning of work changed? The year 2021 marked the start of the "Great Resignation," which has led many employees to reevaluate their professional lives, including where and when they work. According to a recent Future Forum survey, 78% of employees want location flexibility, while 95% want schedule flexibility.
Read more: What do Generation Z employees want from the workplace?
Therefore, autonomy is a key aspect of why we want to control how we work, when we work and where we work. In Ireland, a recent report by IBEC highlighted that 89% of organisational representatives cited employee expectations for remote /hybrid working as having the greatest impact on organisations in Ireland. Is this truly what you expect from work? Or have other important aspects been overlooked?
What next? Are we avoiding important conversations where we can meet the terms of our agreements? How do we capture these expectations? And equally, what our employers want from us. The precarity and complexity of unknown expectations only heightens the implicit nature of these agreements. If we are outside the office, do our agreements become increasingly implicit?
Read more: All you need to know about employment contracts
In today’s rapidly evolving workplace, understanding and managing the psychological contract is more important than ever. Why hold back anymore? We need to actively voice our needs and concerns and seek clarity on our roles, where we can make positive contributions to work. Don’t forget it’s a contract; in return, employers need to communicate transparently, listen, set realistic expectations, and demonstrate genuine concern for the well-being of their employees. In a world of diverse perspectives and expectations, it’s important to capture what we truly want from work.
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The views expressed here are those of the author and do not represent or reflect the views of RTÉ
