Challenges in Human Resources and Psychological Contracts

The practice in Human Resources faces challenges in the current labor market. Collaboration between managers and HR is vital to improve job expectations and employee well-being.


Challenges in Human Resources and Psychological Contracts

In the implementation of labor practices, social signals play a crucial role in creating expectations among both employees and the organization as a whole. Human resources areas recognize the challenges present in today’s labor markets, where offering traditional jobs can be complicated compared to more attractive positions in technology companies or digital and social ventures.

One of the challenges is to integrate principles such as flexibility and workplace well-being into the corporate culture, aligned with a philosophy of human development. At the same time, the financial pressure of the markets forces companies to seek productive efficiency and innovation in their human resources practices.

Given these difficulties, human resources departments are forming alliances with frontline managers, who have continuous contact with employees and are responsible for managing the labor practices of their teams. However, to achieve this, managers need to acquire a new vocabulary and skills related to labor relations management.

The psychological contract, as a human resources tool, allows understanding the success or failure of the implemented labor practices. It is defined as the beliefs an employee holds regarding a tacit agreement with the organization about their employment, developed over time based on various factors. These contracts are subjective and culturally determined, influencing the interpretation of labor practices and organizational behavior.

Human resources executives who frame practices in terms of psychological contracts know that each new practice involves managing promises and commitments. For example, when introducing a new performance evaluation system, employees will expect to be evaluated with different standards and receive different rewards. Clarity in communicating the expected behaviors and benefits is crucial to avoid uncertainty and allow employees to understand and adapt to new practices.