At PERSENTIS, everything revolves around the psychological contract – an inspiring concept that focuses on the human aspect of working relationships and has proven extremely useful for building strong, cooperative teams. It describes the unspoken mutual expectations and demands between employees and employers.

The psychological contract

Origin in the 1960s

The concept of the psychological contract dates back to the 1960s. Chris Argyris, professor of administrative sciences, developed the foundational idea of an implicit agreement within the employment relationship at that time and coined the term as an agreement between workers and foremen. He spoke of a "tacit agreement," which is either based on verbal arrangements or can be inferred from the behavior of the contracting parties.

In this early phase, the psychological contract was understood in a relatively simple way: employees fulfill their tasks and show loyalty. In return, employers offer job security, career prospects, as well as training and development. (Chris Argyris, "Understanding Organizational Behavior", 1960)

old photo of open-plan office black and white

Further Development in the 1990s

The concept gained greater prominence and scientific attention in the 1990s, primarily through the work of American psychologist Denise M. Rousseau. She particularly investigated the effects of workplace changes on employee attitudes and expectations. Rousseau emphasized in 1989 that the psychological contract reflects the perception of mutual expectations, obligations, and promises. She highlighted the subjective interpretation by employees. (Rousseau, D.M. (1989). Psychological and implied contracts in organizations. Employee Responsibility and Rights Journal, 2, 121–139.)

Over time, the understanding of the psychological contract has evolved:

  • 1960s: Focus on job security, career prospects, training
  • Modern working world: More multifaceted and complex expectations

In today's working world, the psychological contract plays a crucial role in employee retention and engagement. It is understood as a dynamic concept that can change and evolve over the course of an employment relationship. Overall, the psychological contract has evolved from a simple concept of job security into a construct that reflects the diverse expectations in modern employment relationships. Instead of pure transactional agreements, the focus today is on the human aspect of the workplace with all its depth and complexity.

Sounds complicated? It's actually very simple: How you too can harness the power of the psychological contract

Whether a collaboration succeeds is often decided right at the very beginning. Not based on CVs or qualifications – but on whether needs and expectations match each other.

This question can be answered – quickly, thoroughly, and digitally.

PERSENTIS Profiling: Making expectations visible

PERSENTIS Profiling is an innovative matching tool for successful recruitment. Based on the psychological contract, it shows with just a few clicks where a good fit exists.

  • Applicants understand their strengths, working style, and needs.
  • Employers recognize who truly fits the team and the role.

The result: Clarity instead of gut feeling – right from the start. >>> learn more

Want to know how you tick? Determine your personality type for free now:

Are you an employer with a position to fill?

To help you get to know us, we're giving you the first matching process completely free of charge: Create your target profile, invite an unlimited number of applicants to complete the personality profile, and see at a glance who is truly a good fit.