Skip to content

// Glossary · HR and Talent

Psychological Contract

In short

The psychological contract is the unwritten expectations that employees and employers draw from words, behaviour and experience about their obligations to each other.

Career opportunities described in a recruitment interview, or flexibility a team has practised for years, shape what employees expect from the employment relationship. The same words can mean different things to each side.

For example, a candidate may hear “You will take on responsibility quickly in this role” as a promise of promotion, while the manager means ownership of projects. Giving an example and a timeframe in the interview makes this difference visible. If circumstances change later, it is important for the manager to explain to the employee what has changed and how it affects the existing expectation.