Thursday, June 25, 2009

The Psychological Contract: The Tool to Find the Right Fit

When working as a business coach, one issue employees would raise was that they did not feel like they quite fit with the organization. It wasn’t that they lacked the skills to perform the job but that they frequently felt at odds with their manager, team members, or the corporate culture. They wondered how they, or their employers, could have missed that they were not a good “fit” during the interview stage. These were bright, articulate, and experienced individuals with successful track records at other organizations. In their current position, however, they were suddenly like fish out of water, trying to find ways to fit in. This is a dangerous proposition for organizations and employees as the more time and energy an employee spends in trying to adapt, the less likely they are to align their activities with corporate objectives.

Bring in the psychological contract. The psychological contract serves as the foundation for what an employee and employer can expect from their relationship outside of the job description or stated duties. While the actual contents of a psychological contract may differ from company to company, it is a tool employers can use before an employment agreement is made. It addresses areas such as management’s expectation for employees to work overtime, how employee family matters during work hours will be tolerated, or how organizational communication is conducted. The areas to be considered can be exhaustive.

You can read more about psychological contracts in an article I wrote at: http://www.bocaratonchamber.com/clientuploads/pdfs/november.pdf

A more in-depth examination of psychological contracts can be found at: http://www.cipd.co.uk/subjects/empreltns/psycntrct/psycontr.htm

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