Prem is a senior consultant transforming a traditional organization into a skill-based organization. Prem is an accredited SFIA Practitioner and works with global business leaders in the implementation of SkillsTX – Talent Xperience platform and Skill Framework for the Information Age (SFIA) that helps retain, attract, and engage top talent.
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Creating an experience where employees feels valued, engaged, and motivated is essential for any organization that wants to retain, and attract top talents. But how can organization create a good employee experience? It boils down to expectation alignment, which require us to have a closer look into three key agreements organization forms with their employees: the Brand Contract, the Transactional Contract, and the Psychological Contract.
A Brand Contract isn't something written down or formalized in a traditional sense. Instead, it's the set of expectations and promises that an organization's brand communicates to everyone, not just its employees. This includes the company's values, culture, and the way it presents itself to the world. A strong Brand Contract makes clear promises about what the organization stands for and, importantly, delivers on these promises, creating a sense of trust and alignment from the get-go.
The Transactional Contract is perhaps the most familiar to us. It's the formal agreement between an employee and the organization, outlining the basic terms of their relationship, such as job responsibilities, compensation, and working conditions. This contract is crucial because it sets clear expectations and provides a foundation for the employment relationship. When both parties have a mutual understanding and agree on the transactional terms, it lays the groundwork for a expectations.
The Psychological Contract might be the most complex but is equally important. It encompasses the unspoken, unwritten set of expectations employees and employers have for each other. These can range from career progression opportunities to the social impact of the organization. Because these expectations are not formally documented, they can vary significantly from person to person, making them challenging to manage. When the Brand and Transactional Contracts are weak, the Psychological Contract takes over the driver seat of employee experience.
To cultivate a workplace that fosters a positive employee experience, organization need to focus on strengthening especially the first two contracts - as they're vital for creating an experience where employees feels valued, engaged, and motivated. A robust Brand contract ensures that employees feel aligned with the organization's values and mission from the outset. A clear and fair Transactional Contract sets the foundation for the employment relationship, outlining what is expected from both parties. When Brand and Transactional are strong naturally this result in less complex Psychological Contract giving way for better alignment of unspoken expectations, and enhancing engagement.
By prioritizing these contracts, organizations can create a strong expectation alignment, leading to highly positive employee experience, driving the organization toward success. Remember, the goal is not just to meet the basic needs of your employees but to exceed them, creating an environment where they feel truly valued and part of something bigger than themselves.
In closing, this article draw inspiration from the valuable work of Tracy Maylett and Matthew Wride in their book, "The Employee Experience." This book is a must-read for HR leaders and executives that are on the journey to enhancing their employee experience. I strongly encourage you to explore its pages for deeper understanding and practical strategies.
If the insights above resonate with you, I invite you to explore further by visiting my website at www.premsinghs.com. There, you'll find comprehensive resources and best practices dedicated to empowering both you and your organization to excel as a skill-driven entity. Uncover the essential tools and knowledge necessary for outstanding achievement.
Justin Case
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