Tag #Psychological Contracts

What long-term strategic implications does a breakdown in psychological contracts have on a company's culture, recruitment, and overall competitiveness?

The long-term effects of poor psychological contract management extend beyond immediate financial costs. Damaged organizational culture, resulting from broken trust, impacts future recruitment efforts, limiting the talent pool and potentially impacting the organization's long-term competitiveness and innovation capacity. Investing in transparent communication and proactive management of employee expectations is crucial for long-term success.