No Bullsh!t Leadership 347. How To Wildly Exceed Your People’s Expectations: The psychological contract
8 snips
Apr 22, 2025 AI Snips
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Understanding Psychological Contract
- The psychological contract is an implied, unwritten understanding between employer and employee beyond the formal contract.
- It defines mutual expectations but varies individually and can change frequently.
Psychological Contract Evolution
- The psychological contract evolved from fair work for pay to include health, promotion, development, autonomy, and work-life balance.
- Post-COVID, flexibility and meaningful work have become core unspoken expectations despite unchanged formal contracts.
Different Views Behind Same Contracts
- Two employees with identical roles and pay may have vastly different psychological contracts based on previous salary and circumstances.
- One feeling undervalued from a pay cut, the other feeling rewarded from a pay increase, impacting their motivation.