BIZTALKRADIO (REAL HELP WANTED SERIES): SHOW 3 TRADING TIME FOR MONEY OR ALL IN?

​The Psychological Contract?!

Two weeks ago in our first show we took the position that behavior is a 50/50 mix of nature and nurture. We then expanded on it by focusing on what is universal to all people - the need to find purpose, to live on purpose. Last week we took the other side of the 50/50 proposition with a mixture of parenting and crisis events in our early years determining how we seek and define purpose. Since parenting reflects how the preceding generation was parented plus the crisis events happening at the same time, we can look at nurture in terms of generations.

This week we will put some flesh on this by addressing what individuals expect in a work setting; what happens when someone comes to work for you?

The idea of a psychological contract is nothing more than a range of unstated expectations that exists with both parties; the employer and the employee. When unmet it leads to dissatisfaction on both sides and can breed long-term hostility. Today’s show makes the two lists public and addressable.

First, what is a psychological contract?

It is an informal set of expectations held by both the employer and employee to include but not limited to informal agreements, mutual benefits, common ground, and perceptions.

Another way of looking at it is both sides believe the other has ‘obligations’ that are part of their work roles.

From the employee’s perspective, their list of expectations for employers:

• Fair & equitable treatment
• Exercise reasonable care for working conditions and safety

From the employer’s perspective, their list of expectations for employees:

• Loyalty to the employer - no moonlighting or working with/for competitors
• Protection of confidential information
• Exercise reasonable care in performance of the job

The list is a good start but reads more like good feeling generalities without the details. Well we will now take this to the next level by making the general specific into 2 categories - what dissatisfies people, then building on that list what drives satisfaction. We will close with specifics for each generational group discussed in last week's show.

What must you clarify and handle to ensure people are not dissatisfied with working with you?

1. Job safety - you have done what can be done to reduce the risk of injury while performing the job. Some jobs are dangerous and employees know that, the question is, have you done everything you can do to reduce the risk?
2. Working Conditions - next step up from safety, how clean, ventilated, seasonally controlled, organized, etc is their work area. Just like Job Safety, have you done all you can do to make it hospitable?
3. Job Security - is the company stable enough that I can make personal financial decisions with my paycheck? No job is guaranteed, but the employee needs to know how dependable is their check; i.e. before applying for a loan will their exist in 6 months..
4. Compensation - you would think it is higher on the list but if I could die on the job, does check size matter? The employee is looking at the entire package - salary / wages, benefits, profit sharing, compensation, etc. Their evaluation is the package and is measured on 2 levels - is it fair for what I am doing and how does it match other jobs?
5. Working Hours - this can be very generational between GenB (boomers) and GenY because everybody has a different definition of work / life balance. The normal and abnormal hours are weighed against their own value set and the compensation package.
6. Policies & Procedures - every business has (or should have) an employee manual. What in it conflicts with prior work experience and value set? Usually it is the ambiguous issues where people are held accountable after the fact that becomes personnel problems..
7. Interpersonal Relations - what is like in their work group or team - supportive with people helping each other or dog-eat-dog?
8. Direct Supervision - how does their immediate supervisor lead and manage? Do they train and develop people to ensure competence for the job?

You noticed that we started with issues that have an inward focus, things that matter to them and their family. It is only the last two items where their concern turns external.. Keep that in mind when dealing with new hires. The relationships will only matter when there is a relationship, until then it is about them.

Now let’s shift to the positives. We must start with the previous list of 8 distracters that make it difficult to focus on the positives. Once ADEQUATELY addressed, moving to the positive expectations will have a real impact.

Where are opportunities to create positive expectations for the work relationship?

1. Challenging Work - the demand to use all of their talent. People like being challenged and never forget we spend over 70% of our lives working so where does are our meaning or purpose come from?
2. Growth Opportunities - is this a dead-end job in terms of doing the same thing in 10 years or is the company committed to cross-training and working in different parts of the company. Can I grow here?
3. Training & Development - is the focus in the work environment skill mastery and cross training? Is the orientation of leadership that their #1 goal is helping people become competent for their job? And after the job is mastered, is there further training in other areas of the company?
4. Responsibility & Delegation - does competence provide greater responsibilities, authority to carry it out, and delegation to do it their way?
5. Promotions - as the company grows and they become proficient, what are the opportunities for promotion to a higher level in the company? If your company is young and small, share with them your philosophy for growth. What is the right mix of promoting from inside vs. hiring from the outside.
6. Informal & Formal Rewards Programs - is there a systematic process to catch people doing something right and providing the corresponding recognition both formal and informal?

This list is more specific, but it doesn’t provide you the detail needed when a new prospect is sitting across the desk from you or in a virtual meeting. We can close that gap with reviewing the previous show on Generations, Each generational set of individuals will have common characteristics that provide the owner with a solid starting location.

GenB
Emphasize your optimism about the company's future and their role in it, the level of work challenge now and in the future, and this is the place they can make and leave a mark for as long as they want to work.

GenX
Emphasize the quality of leadership, the importance to the company on achieving a work / life balance when taking on work and assigning jobs, how the policies & procedures (employee manual) was kept simple - the few things you can’t do - we are more flexible and informal than it appears, and we are going to rely on your knowledge of tech to make everything work.

GenY
Emphasize flexible work conditions - what is your policy on remote work, the importance of work / life balance when taking on work and assigning jobs, celebrations for performance are a big deal here, and we are very collaborative in our approach to running the business.

GenZ
Emphasize the desire to build a real inclusive work team, the company cares about their well being, we demand ethical leadership - they do what they require, we run an open book business.

Now some of the list issues might have you scratching your head about whether you want to make those statements. You have to figure out how to navigate the list.

Next Show: ATTRACT THE BEST BT APPEALING TO THEIR ASPIRATIONS.