How many contracts between employee and organisation are you aware of? In any organisation there is definitely more than one. All above is more important than we realise in our daily routine.
Transactional contract represents the typical relationship and generates employee satisfaction.
Brand contract is so desperately wanted by many employers. Employee retention is a hot topic for all organisation these days and power of Brand is enormous.
However psychological contract makes the real difference. It is not discussed openly, it is not formally signed it is not in employee files. Because it is deeply in employees minds and hearts . It impacts employee engagement directly.
There are many good reasons and even more benefits for both parties to focus on numbers and employees minds at least equally. Pushing employees to reach target set by management is very old strategy with dubious results. In some circumstance it could be short term effective and may earn bonuses. Sooner or later the issues will be to define Purpose of such activities for an employees. Purpose, that will be accepted by employees internally, not formally via objective setting process, purpose employees will believe and will be engaged with.
Building employees engagement is one of new and key responsibilities not only CEOś but also HR teams. HR should be the source of knowledge and expertise in a such projects. Because employee is not a commodity any more , and HR should not treat employees as resources. Welcome a in the age of Employee experience.