Exploring Interests, Trust & the Psychological Contract in the Context of the Pandemic : An Employer’s Perspective

The last three years have brought unparalleled change, with the pandemic catalysing major shifts in what matters to people and their organisations. In this fascinating, turbulent context, I explore the impact of the pandemic on the psychological contract (PC) from the neglected employer’s perspective. Taking a change-led perspective allows me to explore the PC’s dynamic nature alongside two core change concepts - interests and trust. Through interviews with HR leaders, I examine the changing nature of interests, trust and the PC itself across three time periods (pre, mid and post pandemic), before understanding their future change plans. Glassdoor data triangulates and enriches the study. Rooted in this research, I define a model demonstrating how company performance is reflected in consideration of employee interests. In turn, this influences trust which itself shapes the nature of the PC. Covid-19 disrupted this cyclical dynamic as organisations prioritised the needs of their people, offered greater flexibility and reduced their expectations. Yet in this post-pandemic world, many organisations are looking to reset the balance, with a greater focus on commitment and, in some cases, performance edge. This research offers a contemporary perspective on the dynamic nature of the PC, from an under-studied perspective of employer navigation. Further, the interviews offer insight to update Rousseau’s (2000) conceptualisation of the PC