Psychological Wellbeing and the Psychological Contract

Key Takeaways: psychological wellbeing

Psychological wellbeing is an umbrella concept

It covers a wide spectrum of employee experiences – from everyday moods and job satisfaction to stress, engagement, and even clinical conditions like depression.

Managers should care about it for both ethical and performance reasons

Supporting psychological wellbeing is a moral and legal responsibility, but it also has practical benefits: employees who feel better are more likely to perform well and go “the extra mile.”

The psychological contract is central to wellbeing

Employees’ wellbeing can be impacted by the unwritten expectations between them and their employer. When organizations break implicit promises (e.g. about rewards or progression), it can damage trust, reduce motivation, and impact psychological wellbeing.

Active understanding and communication are key management tools

Managers can improve psychological wellbeing by understanding individual needs, having meaningful conversations about expectations, and recognizing that different employees want different things.

About Professor Rob Briner

Rob Briner is a Professor of Organizational Psychology at the School of Business and Management, Queen Mary University of London. To learn more about him, see his biography here.

Reflective Questions

Once you’ve watched the video, reflect on what you’ve learned by answering the following questions:

• How do you try to uncover what the people you manage want, and what motivates them? How do you use this information in practice?
• What strategies do you use to actively manage the psychological wellbeing of your team, and how do you measure the impact of such strategies?
• What does the term “psychological contract” mean to you? How would you describe your own psychological contract with your organization?
• In your experience, what can happen when the psychological contract is broken? What should you do if you suspect this applies to someone in your team?