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

The psychological contract is a basic aspect of the relationship between the company and the employee.

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

However, there is another type of link that is also made, even if it is not on paper or explicitly, but it has the same or even more importance. This is the psychological contract. With this article we will know all the details about this agreement.

What is the psychological contract?

The psychological contract refers to all the commitments the commitments that the worker and the employer acquire at the beginning of an employment relationship, beyond what is stated in the employment contract.The psychological contract refers to all the commitments that the worker and the employer acquire at the beginning of 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/she starts working, but also the other way around, since it also includes what the company itself expects from the new team member in his/her job, and his/her contributions to the company.

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

This mental image of what one and the other mutually expect from the working relationship includes, with respect to the employee, ideas about retribution and compensation, job growth, recognition of achievements, a good relationship with new colleagues and superiors, etc. On the part of the company, it is logical to expect the new team member to adapt quickly to his or her position, to contribute value to the company, to be efficient in the performance of tasks and to be cordial with the rest of the people.

It is important to bear in mind that, as with written contracts, a psychological contract may contain some abusive clauses. For example, an employer may expect the employee to work more hours than the working hours indicated in the contract, without being paid for the extra hours worked. Conversely, an employee could expect to take several long breaks each day within his or her working hours. Both scenarios would constitute abusive clauses and would eventually lead to a conflict.

Types

Although a psychological contract itself encompasses a variety of "clauses", these can be of a very different nature, depending on what they refer to. It is therefore convenient to distinguish the different types that we may encounter.

1. Balance

The first thing that both parties will expect at the beginning of their contractual relationship is that the counterpart is in balance with what was offered. The employee will expect that he/she will be demanded according to his/her position, qualification and remuneration. On the other hand, the company will expect the new employee's work contribution to be in line with everything that the organization itself is offering him in this new stage. in this new stage.

2. Transaction

Clearly, an employment relationship is an exchange, with one party providing work and the other party providing a salary, which may be monetary only, or monetary and in kind. The expectations of the psychological contract mean that the employee expects a fair return for his work, and the organization, in turn, will expect the employee to perform the duties assigned to him within the time limits given to him. If both parties comply, the transaction will be satisfactory.

3. Relationship

Not only is fair compensation necessary, but people want to feel people want to feel valued and have prospects for growth within the company, and to maintain good relationships with other employees. and maintain good relationships with other team members. The company also expects the employee to know how to take advantage of the available promotion opportunities and to be able to contribute more and more to the development of the organization, becoming progressively a component of more and more value.

4. Change

When we take on a new job, we also have expectations of improvement from our previous job. expectations of improvement with respect to our previous stageWhether it was an accident, we were not satisfied with it, or we are simply looking to grow and improve. Of course, team managers also expect the new member to be equal to or better than the previous employee in that position, or to meet expectations if the position is newly created and there is no standard against which to compare.

Motivation

One of the main effects of the psychological contract is motivation, and here we are focusing on the part corresponding to the employee's vision of the company. All the expectations and hopes placed in his new employment relationship will make him particularly motivated and therefore will make him especially motivated and therefore will make him perform well in his new position.. This will be maintained over time if these expectations are fulfilled and therefore reap the rewards expected.

In the opposite case, if some of the expectations never materialize into a reality or at least not in the way they were expected, motivation may begin to decrease, and it 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 he has found during that time, developing the usual tasks involved in his position in the new company.

On the contrary, if the forecasts have not only been fulfilled, but have been exceeded, finding a much better scenario than expected, the initial motivation may increase, since somehow the individual will feel that he is indebted to the company, and will try to give the best of himself at all times, as he will try to meet the expectations that the company has of him. he/she will try to ensure that the company's expectations of him/herself are also met. and are equally overwhelmed, as has happened to him in the opposite direction.

We clearly see in this example that it is very useful for the company to fulfill its part of the psychological contract, because it is one of the most effective ways to get a fully motivated employee ready to face all the challenges that appear in his job, because when he considers himself a full member of the team, he will seek at all times to tackle them in the most efficient way possible. Therefore, it is a is a feedback mechanismThe more one party gives, the more the other party gives back.

Breach

When a labor contract is breached, this has a series of consequences that can lead to the rupture of the agreement. The same applies to the psychological contract.

It can happen (and in fact, it often does) that the reality of starting a new employment relationship does not correspond to the expectations that either the employee, the company or both parties had originally had. If one or both parties thought that the relationship was going to be much more satisfactory and fruitful than it actually is, a conflict arises that needs to be resolved.

It is possible to try to resolve it by explaining the disagreement with the other party.. For example, the employee can expose his disagreement with that element or routine of the company that is contradicting what he expected, and try to resolve it so that it conforms to what he originally expected. It is also possible that it is the person himself who readjusts his previous expectations and adapts them to the new reality, modifying what he expected from the company (or from the employee, in the opposite case).

The third way of resolving the conflict is the most radical but also the most effective, since it eliminates the problem at its source. This way would be the rupture of the psychological contract, but also of the labor contract, and therefore the dissolution of the relationship between the employee and the company, either by resignation, if it is on the part of the employee, or by 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 clear is that the conflict cannot be prolonged in the long term. the conflict cannot be prolonged over time, as it causes emotional discomfort in the parties involved, a considerable or even total reduction in the number of employees, and a considerable or even total reduction in the number of employees.As we saw in the previous point, this can lead to a considerable and even total decrease in motivation and, consequently, a significant drop in employee performance. And it can even generate sabotage behaviors, to disrupt the good performance of the company, in retaliation.

Bibliographical references:

• Böhrt, R., Solares, L., Romero, C. (2014). Evolution of psychological contract and organizational commitment with age and seniority. Ajayu Órgano de Difusión Científica del Departamento de Psicología UCBSP.
• Gracia, F.J., Silla, I., Peiró, J.M., Fortes-Ferreira, L. (2006). The status of the psychological contract and its relationship to employee psychological health. Psicothema.
• Tena, G.T. (2002). The psychological contract: company-employee labor relationship. Actions and social research.
• Vesga Rodríguez, J.J. (2011). The types of labor contracting and their implications in the psychological contract. Pensamiento psicológico.