invisible ink: the psychological contract and the employee

© 2021 UKG Inc. All rights reserved.

Invisible Ink: The Psychological Contract and the Employee Experience

Julie Develin, MSHRD, SHRM-SCP

Hi, I’m Julie

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• Sr. Partner, HCM Advisory at UKG, Inc.

• 17+ Years Executive Level HR Experience

• Graduate school professor and program coordinator in HR (McDaniel College)

• Writer, Speaker, Webinars, Consultant, Mentor

Our Plan

✓ Definition

✓ Violations

✓ Management

✓ Tools

✓ Looking Ahead

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Life Happens. Work Happens.

WorkOutside interests

Work

Old view of work Today’s view of work

Outside interests

Employee Experience Expectations

See the Whole Employee

More Flexibility & Options

Digital Collaboration

Overcommunication&

Transparency

Consistency

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• Created in our Mind

• Assumptions

• Experiences

• Ethics and Values

• Purpose and Meaning

Mental Maps

The Psychological Contract

Employee

Expectations

Everyday

Experiences

Psychological Contract = The relationship between an employer and its employees, concerning mutual expectations of inputs and outcomes. The fairnessor balance as perceived by the employee.

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✓Covert

✓Imprecise

✓Implicit

✓Unstable

✓Dynamic

Invisible Ink

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Work Pay

Employee Inputs(Employer Needs)

Rewards Given by Employer(Employee Needs)

Hours workedEffortLoyaltyLeadershipSacrificeRiskCommitmentResults

Safety & SecurityTraining & DevelopmentRecognitionGrowthWork-life BalanceStatusBenefitsFlexibility

https://www.businessballs.com/building-relationships/the-psychological-contract/

Visible to Each Side

Pink: Market InfluencesPurple: Iceberg rises w/ maturityGreen: Influences affecting perception

Trust in The Modern Workplace

Earned or Given?

Belonging & Mental Health

Employer of Choice

In Person & Virtual Work

10 https://workforceinstitute.org/

Managers

Recruiters

Systems & Processes

Coworkers

Who & What Can Violate a Psychological Contract?

Consequences of a Violation or Breach

Anger, Betrayal

No Trust

Lower Commitment

Job SatisfactionLowered

Withdrawal

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Build and Keep TrustGoal SettingModel the Behavior

Feedback Opportunities

Job Security Concerns

People Managers: Key to the Experience

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“Hi, how are you?”-Everyone, Everyday!

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• Yes, it’s a thing, too!

• No, it’s not ALL on the employer.

• Look inward, ask questions.

• Be honest with yourself.

But Wait, What About the Employee Obligation?

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Rousseau’s Renegotiation Strategy

Explain why the old psychological contract is no longer appropriate.

Involve staff in developing transitional arrangements to anticipate necessary changes.

Propose and negotiate new psychological contracts.

Implement new psychological contracts in words and actions.

Rousseau, D. (1995) Psychological contract in organizations: understanding written and unwritten

agreements. Newbury Park, CA: Sage.

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Tools to Assist with the Psychological Contract

Communication

AI & Data Training

Technology

• Have a plan & defined protocols

• Cut through the clutter

• Make important messages repetitive

• It’s not what you say, it’s how you say it

Communication

HR’s Role In Managing the Psychological Contract

• Employee Tools & Technology

• Approachability

• Branding

• Two-way Communication

• Expectations

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Intentionality Ensures Well-Being

ANALYTICS POLICY CHECK-UP GAPS

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There is no one size fits all solution

The psychological contract is constantly

evolving and changing

Contract violations and breaches can be

repaired

We all play a part in psychological

contracts at work

Well informed managers hold the

key

Thank You!

Let’s continue the conversation!

Twitter & LinkedIn:

@JDevHR

julie.develin@ukg.com

UKG Logo and Tagline

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