In today`s job market, psychological contracts are becoming increasingly important. A psychological contract is an unwritten agreement between an employer and an employee that outlines the expectations each has about the relationship. These contracts can have a significant impact on job satisfaction and overall employee retention. In this article, we will explore the different types of psychological contracts.

Transactional Contracts

Transactional contracts are the most traditional type of psychological contract. They are based on the exchange of specific tasks or duties for compensation. In other words, an employee agrees to perform a certain job in exchange for a salary or other benefits. This type of contract is usually formalized in an employment contract, and both the employer and employee have clear expectations of what is required.

Relational Contracts

Relational contracts are more focused on the long-term relationship between an employer and an employee. They are based on mutual trust, respect, and loyalty. In this type of contract, employees feel that their employer values them as individuals, not just as workers. They are more likely to stay with their employer for a long time, and they often go above and beyond their responsibilities to help the company succeed.

Psychological Contracts in “New” Workplaces

In recent years, there has been a significant shift in the workplace. Many people are now working in the “gig economy,” where they are self-employed or work as freelancers. In these types of workplaces, the psychological contract is different. Instead of an employer-employee relationship, it is more of a client-contractor relationship. In this case, the psychological contract is based on mutual satisfaction with the work completed rather than on a long-term relationship.

Implicit Contracts

Implicit contracts are unwritten agreements that are based on implicit assumptions and expectations. They are often formed based on an employee`s perceptions of what they believe their employer expects of them. Implicit contracts are difficult to quantify, but they are important because they play a crucial role in shaping employee behavior.

In conclusion, psychological contracts are an essential part of the employment relationship. Employees have different expectations of their employers, and it is essential to understand these expectations to create a healthy and productive work environment. Understanding the different types of psychological contracts can help employers create a conducive work environment that fosters growth and inspires employee loyalty.