A psychological contract refers to a set of unwritten, yet implicit, expectations between an employer and an employee. This type of agreement shapes the relationship dynamics in the workplace, and influences employee behavior, productivity, and job satisfaction.
There are several types of psychological contracts that exist in today’s modern workforce. Below, we will explore some of the most common ones:
Transactional contract: This is the most basic psychological contract. It implies that employees are expected to fulfill their job duties, and in return, they receive a salary or wages. This type of contract is typically used in low-skill jobs, and there is a minimal expectation of job security or career growth.
Relational contract: This type of psychological contract emphasizes the long-term relationship between the employer and the employee. It implies that the employer will provide job security, training, and career development opportunities, in exchange for the employee’s loyalty, commitment, and willingness to go above and beyond their job description.
Balanced contract: This contract is a mix of both a transactional and relational contract, where the employer provides job security and career growth opportunities, while also expecting the employee to fulfill their job duties and meet performance expectations. This psychological contract is common in mid-level management or professional jobs.
Implicit contract: This type of psychological contract is unspoken and subjective, and arises from the employee’s perception of how they are treated by their employer. It relates to the unwritten expectations that the employer will provide a positive work environment, recognition and appreciation, and opportunities for personal growth and development.
Personal contract: This contract is unique to each individual employee, and is based on their personal values and beliefs. It includes expectations related to work-life balance, job satisfaction, career goals, and social responsibility. This psychological contract is common in knowledge-based or creative jobs, where employees seek to find meaning and purpose in their work.
In conclusion, understanding the different types of psychological contracts is essential for both employers and employees. By recognizing and fulfilling each other’s expectations, both parties can establish a mutually-beneficial working relationship that leads to higher job satisfaction, productivity, and employee retention.