Psychological contract: what it consists of and what this type of agreement is for

When we begin an employment relationship, the first thing we do is formalize the situation, signing an employment contract.

However, there is another type of link that is also carried out, although it is neither on paper nor in an explicit way, but it has the same or even more importance. It's about the psychological contract. With this article we will know all the details about this agreement.

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What is the psychological contract?

The psychological contract refers to all the commitments that the worker and the employer acquire when beginning an employment relationship, beyond what appears in the employment contract itself. It is a tacit agreement, which encompasses the expectations that the individual has about the organization in which he begins to work, but also the other way around, since it also includes what the company itself expects from the new team member in their job, and their contributions to the company.

The psychological contract is, therefore, a reciprocal exchange agreement between the employee and the employer, which may be more or less explicit. In the first definitions of the concept, the weight was placed on the worker's expectations, but in later revisions this definition was expanded to also include the company's vision, since it is a bidirectional concept and therefore it is essential to consider both points of view. view.

This mental image of what each other mutually expects from the employment relationship includes, with respect to the worker, ideas about the remuneration and compensation, job growth, recognition of achievements, a good relationship with new colleagues and superiors, etc On the part of the company, the logical thing is to expect that the new member of the team adapts quickly to her position, contribute value to the company, be efficient in carrying out tasks and cordial with the rest of the employees. people.

It must be taken into account that, as occurs in written contracts, a psychological contract may contain some abusive clauses. For example, an employer may expect the employee to work more hours than his working day indicates, without receiving compensation for the overtime worked. Conversely, an employee could expect to take several long breaks each day, within their work hours. Both assumptions would constitute abusive clauses and in the long run would lead to a conflict.

Guys

Although a psychological contract encompasses a variety of “clauses” in itself, these can be very different in nature, depending on what they refer to. For this reason, it is convenient to distinguish the different types that we can find.

1. Balance

The first thing that both parties will expect when beginning their contractual relationship is that the compensation is in balance with what is offered. The worker will expect to be demanded based on his position, his qualifications and his remuneration. On the other hand, The company will expect that the new employee's work contribution is in line with everything that the organization itself is offering. in this new stage.

2. Transaction

Obviously, an employment relationship is an exchange, in which one party contributes their work and the other a salary, which can be only monetary, or monetary and in kind. The expectations of the psychological contract make the employee expect fair remuneration for his work, and the organization, In turn, they will expect the worker to fulfill the functions assigned to them within the deadlines given for this purpose. If both parties comply, the transaction will be satisfactory.

3. Relationship

Not only is fair remuneration needed, but People want to feel valued and have growth prospects within the company and maintain good relationships with the rest of the team members. The company also expects that the employee knows how to take advantage of available promotion opportunities and can contribute more and more to the development of the organization, progressively becoming a component of more and more worth.

4. Change

When we get a new job, we also have expectations of improvement compared to our previous stage, whether because it was bumpy, it did not satisfy us, or we simply sought to grow and get better. Of course, team leaders also expect the new member to be equal to or better than the previous employee. that position, or that it adjusts to expectations, if this is newly created and there is no standard with which to carry out the comparison.

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Motivation

One of the main effects of the psychological contract is the motivation, and here we are focusing on the part corresponding to the worker's vision of the company. All the expectations and hopes placed in your new employment relationship They will make you especially motivated and therefore provide good performance in your new position.. This will be maintained over time if these expectations are met and therefore reap the fruits you expected.

In the opposite case, if some of the expectations never materialize into reality or at least not in the way expected, motivation may begin to decrease, and he will do so to a lesser or greater extent depending on the magnitude of the difference between the forecasts he had. in his psychological contract and the reality that he has encountered during that time, developing the usual tasks that imply his position in the new company.

On the contrary, if the forecasts have not only been met, but have been exceeded, finding a scenario much better than expected, the motivation initial can be increased, since in some way the individual will feel that he is indebted to the company, and will try to give the best of himself at all times, well He will try to ensure that the expectations that the company had of himself are also met. and they are equally overwhelmed, as has happened to him in the opposite direction.

We see clearly in this example that it is very useful for the company to fulfill its part of the psychological contract, since it is one of the most effective ways to obtain a fully motivated and ready to face all the challenges that appear in his workplace, because considering himself a full member of the team, he will always seek to tackle them in the most efficient way possible. Therefore It is a feedback mechanism., since the more one party offers, the more the opposite party returns.

Breach

When an employment contract is breached, this has a series of consequences that can lead to the breaking of said agreement. Exactly the same thing happens with the psychological contract.

It can happen (and in fact, often happens) that the reality when starting a new career path is not corresponds to the expectations that either the employee, the company, or both parties, had made in a principle. If one of the parties, or both, thought that the relationship was going to be much more satisfactory and fruitful than it really is, a conflict arises that must be resolved.

It is possible to try to resolve it by explaining the disagreement observed with the opposite party.. For example, the employee can express his disagreement with that element or routine of the company that is entering contradict what he expected, and try to resolve it so that it fits what he expected in a principle. It is also possible that it is the person themselves who readjusts their previous expectations and adapts them to the new reality, modifying what he expected from the company (or from the worker, in the case contrary).

The third way to resolve the conflict is the most radical but also the most effective, since it eliminates the problem from its source. This route would be the breaking of the psychological contract, but also of the employment contract, and therefore the dissolution of the relationship between the worker and the company, either by via resignation, if it is by the employee, or via dismissal, if it is the company that decides to dispense with the services of the individual with whom the conflict existed.

Whichever route is chosen, what is evident is that The conflict cannot be prolonged over time, as it causes emotional discomfort in the parties involved., a considerable and even total decrease in motivation, as we saw in the previous point and, consequently, a significant drop in the employee's performance. And it can even lead to sabotage behavior, to disrupt the good performance of the company, as a form of retaliation.

Bibliographic references:

• Böhrt, R., Solares, L., Romero, C. (2014). Evolution of the psychological contract and organizational commitment with age and seniority. Ajayu Scientific Dissemination Body of the Department of Psychology UCBSP.
• Gracia, F.J., Silla, I., Peiró, J.M., Fortes-Ferreira, L. (2006). The state of the psychological contract and its relationship with the psychological health of employees. Psychothema.
• Tena, G.T. (2002). The psychological contract: company-worker employment relationship. Social actions and investigations.
• Vesga Rodríguez, J.J. (2011). The types of labor contracting and their implications in the psychological contract. Psychological thinking.