The New Psychological Contract: Understanding Shifting Employee Expectations

In today's evolving workplace, traditional employer-employee dynamics are being redefined. Beyond competitive salaries and benefits, employees now seek alignment with organizational purpose, opportunities for personal growth, well-being support, flexibility, and a meaningful voice in decision-making. This transformation of the "psychological contract"—the unwritten set of mutual expectations—signals a shift from transactional relationships to partnerships grounded in trust and shared values. Organizations that recognize and adapt to these changing expectations can foster deeper engagement and enhance talent retention.

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