The psychological contract between employers and employees has undergone significant changes over recent years. Technological advancements, economic shifts, changing workforce demographics, and evolving societal values have all fuelled this changed. 

The result is that individuals have more control over where and how they work than ever before making it harder for traditional employers to recruit and retain employees – the balance has shifted.

So, what does this mean, for the employer-employee relationship and the employee experience? Let’s take a look at key changes and employee expectations. 

Shift from job security to employability

Traditional Model: Historically, psychological contracts emphasised job security and long-term employment in exchange for loyalty and performance. Employees expected stable careers and benefits, while employers expected dedication and loyalty, often life-long.

Modern Model: The focus has shifted towards employability rather than job security. Employees now seek and value opportunities for continuous learning, skill development, and career advancement and definitely don’t expect or in many cases want a job for life.

Transactional to relational contracts

Traditional Model: The psychological contract was often transactional – it was an exchange – work for compensation.

Modern Model: The contract has become more relational, emphasising mutual respect, trust, and open communication. Employees seek more holistic relationships with their employers, including recognition, appreciation, and involvement in decision-making processes.

Greater emphasis on purpose and values

Traditional Model: The primary focus was on financial compensation and job security, with less emphasis on organisational values and culture.

Modern Model: Employees now place greater importance on organisational purpose and values. They want to work for organisations that add societal value, engage in socially responsible practices and have an outlook that aligns with their own personal values.  

Increased Focus on Work-Life Balance

Traditional Model: Work-life balance was often a secondary consideration, with employees expected to prioritise work commitments.

Modern Model: There is a stronger emphasis on work-life balance, flexible working arrangements, and mental and physical health.

Increased employee voice

Traditional Model: Employee feedback mechanisms were limited, constraining upward communication and with decision making often rested with a small minority.

Modern Model: A stronger emphasis on employee voice and advocacy. Employees expect to have platforms for sharing feedback, contributing ideas, and actively participating in organisational changes.

 A well thought through employee experience should, and can, cater to evolving employee needs and crucially, employees need to play an active part in this achieving this. This is exactly how we function at EXwise. We seek out employee feedback about their current experience and involve employees in the creation and development of EX solutions. 

 If you would like to know more about how we engage employees in developing their employee experience, get in touch today, we’d love to hear from you.