Psychological contract violation refers to the failure of an employer to fulfill the expectations and promises made to their employees. This violation can result in a loss of trust, decreased job satisfaction, and potentially, a decrease in productivity.
In today`s competitive job market, companies strive to attract and retain top talent by offering competitive compensation, benefits packages, and opportunities for growth. However, despite these efforts, many employers fail to live up to the expectations they create during the hiring process.
Employees enter into a psychological contract with their employer, which is an unwritten set of expectations that outlines the terms and conditions of their employment. This contract includes things like job security, fair treatment, recognition for good performance, and opportunities for advancement. When employers fail to deliver on these expectations, it can lead to psychological contract violation.
Examples of psychological contract violations include layoffs or downsizing without proper communication or support, not providing the promised tools, resources, or training to employees, and failing to recognize and reward workers for their efforts. These actions can create an environment of mistrust between employees and their employer, resulting in reduced job satisfaction and increased employee turnover.
The impacts of psychological contract violation are not limited to the affected employees. It can also have negative effects on the employer, including damage to their reputation, decreased productivity, and difficulty attracting new talent.
To avoid psychological contract violation, employers should strive to create an environment of open communication and transparency. This includes clearly outlining the terms and conditions of employment, providing regular updates and feedback, and acknowledging and rewarding good performance.
In conclusion, psychological contract violation refers to the failure of an employer to fulfill the expectations and promises made to their employees. This violation can have negative impacts on both employees and employers and can be avoided through open communication, transparency, and a commitment to fulfilling promises.