Meaning ● In the context of SMB growth, automation, and implementation, the Psychological Contract denotes the unwritten set of beliefs, perceptions, and informal obligations between an SMB and its employees, influencing motivation and performance. Focusing on the expectations of fair treatment and reciprocal commitments, it profoundly affects workforce stability during periods of technological transition.
It includes employees’ beliefs about what they owe the company, such as dedication and flexibility, and what the company owes them in return, which could be job security, training opportunities, or fair compensation, especially during automated process implementations. ● A robust Psychological Contract within SMBs translates to increased employee engagement, reduced turnover, and smoother adoption of new technologies. Specifically, it highlights the role of automation in redefining job roles, demanding open communication from management about retraining and career development opportunities to maintain trust and commitment from employees. Moreover, within SMB, the perceptions of fairness of performance evaluations, promotions, and workload distribution—especially in the face of new technological demands and staffing changes that result from automation projects—play critical roles in sustaining the Psychological Contract.
