We need a new Psychological Contract
If you've ever read any of my articles or posts over the years, you'll know that a reoccurring theme has been about how we improve employee engagement - and thus organisational performance.
But I often feel when people talk about employee engagement, that there's an elephant in the room that no-one really wants to face up to.
There's no more trust.
You and I have watched the decline in trust in our places of work and society in general. We've seen study after study confirm what we already knew; we have a big trust deficit.
One of the largest studies, The Edelman Trust Barometer is published annually and I've talked about it before. Last year, it said;
“There has been a startling decrease in trust across all institutions driven by the unpredictable and unimaginable events of 2014,” said Richard Edelman, president and CEO, Edelman. “The spread of Ebola in West Africa; the disappearance of Malaysian Airlines Flight 370, plus two subsequent air disasters; the arrests of top Chinese Government officials; the foreign exchange rate rigging by six global banks; and numerous data breaches, most recently at Sony Pictures by a sovereign nation, have shaken confidence.”
And, it's clear many people no longer look to our leaders for the answers, and even when they do, they're inclined not to believe it.
Undoubtedly, some of this is as a result of technological advances; through the internet and mobile computing we can find out 'the truth' (or someone's version of it) at the click of a mouse or the tap of a screen in an instant.
We all know more.
And, our social media networks reinforce our own views of the world and promote groupthink.
We mistake opinion for fact.
And, we only have to open a newspaper to know that pessimism isn't enough; cynicism is the new way.
It's not only the breakdown in trust in our society that is affecting our working lives. In our post-globalisation world, the West is no longer the economic and financial powerhouse it once was. Many of our markets and industries have had their heyday, and our businesses are struggling to compete with leaner, more agile companies around the world. As much as they might want to, our employers can no longer guarantee a job for life.
So what does this mean for employee engagement? I've spent a significant part of my career to helping people feel a stronger sense of connection to their work and their organisation. Because I've always felt that if we create the right environment at work for people to flourish, everyone wins.
By developing and implementing employee engagement, internal communications, recognition and CSR strategies, I've seen some significant shifts in how people feel about their relationship with their employer.
But - it's getting harder to 'shift the needle'. Because the old rules don't apply anymore. There's a more fundamental change happening that can't only be solved by initiatives or benefits. Because when it comes down to it, it's all about the psychological contract; the 'unwritten rules' that apply to our workplaces.
It talks about how if we, as employees 'promise to work hard' then we will earn 'pay commensurate with performance' - but is that true? For that to be true, we need to have effective, consistent and measurable performance management frameworks in place, which, in our highly complex and busy organisations, is incredibly difficult to do.
What ends up happening as a result? Employees get an 'approximation' which isn't aligned with their expectations. And even if we're really good at telling people why, cynicism and a lack of trust will undermine the explanation.
As a leader, it's no longer enough to tell the truth, you have to prove you are telling the truth.
And what about job security? The psychological contract states that "if we maintain high levels of punctuality and attendance" then we will see "opportunities for promotion".
But, our organisations are leaner and flatter. Technology has replaced a lot of the tasks we used to do ourselves and, we know that too many layers slows down decision-making and innovation. So the celling for promotion in organisations is suddenly two floors lower for us than it was for our parents.
"Be honest" and you get "reasonable job security". Is that really true? Can we, as employers and leaders, really promise job security when the pace of change is so fast - and constant?
So, what does this mean for us?
Well, I believe we need to begin a new conversation about the psychological contract and redefine it for the 21st Century.
One that starts without blame, mistrust and cynicism and that recognises the world has changed. A conversation where we are honest about the purpose of the organisation, what we want to get out work, and the challenges we are likely to face. A conversation that instills ownership in all of us for our own destiny, and the support we will get to achieve our potential.
Only once we have really explored and understood the realities of work today, can we begin to create a better way for our organisations and ourselves to build a trusting and mutually beneficial relationship.
Because without truth there cannot be trust.
Please share your thoughts below. What should we include in a new psychological contract?
Follow me on Twitter @richard_baker and get regular employee engagement and internal communications goodness at hiyu.co.uk