Client Views — the importance of the psychological contract
LJA’s client Sam Mickelburgh, Rok Service Centre Leader, shares her insights on steering her people through the economic downturn.
At a time then when resources are being cut, workload is not reducing and the outlook is bleak, why stop developing people and giving them hope for the future?
In the current unprecedented economic climate it is inevitable that businesses look to reduce overhead spending. Unfortunately, all too often the very first item that is cut is training and development. At Rok, we have been working with Lesley and her team now for the past four years, starting with a “grab what we can to expose as many of our team to development as possible” approach and moving to a bespoke, uniquely tailored annual programme mixing workshops with 1-1 executive style coaching and extending this into an EAP support area when it proved necessary. As a result, the team in the Rok Service Centre have gained from steady, structured, individually tailored development that has benefited both the business and the individual. At a time then when resources are being cut, workload is not reducing and the outlook is bleak, why stop developing people and giving them hope for the future? After running a defined programme for 2 years now, to stop offering anything, effectively takes the team back to where they were previously and the benefit of the past two years investment is lost. This is why; when Rok looked to reduce its overhead expenditure I was adamant that we should not cut all training and development. Due to the great relationship forged over the past four years between LJA and Rok, we have been able to be innovative once again with a solution that will keep things ticking over until greater investment is once again re-instated. Why do I feel so passionately about this? The answer for me lies in the psychological contract. At a time when things are tough for individuals both professionally and personally, I feel it is the most important time to maintain belief in the company’s values and culture. People join Rok, not necessarily because they want to be in the building sector, but because the organisation has a culture borne of great values that recognise its’ people and the important part they play in making it a success. Our people sign up to not just an employment contract, but more importantly a psychological contract that with investment will stand the test of time whatever the business challenges present. As the business cycle progresses the economy will move into an upturn and at this time we will want to maintain our people. If we break the psychological contract now, then why should we expect these people to stay with us when they have opportunities in the future to move? Now, more than ever, is the time to invest in our people and strengthen the psychological contract that is so important. Continuing to develop our people supports this fundamental relationship. SAM MICKLEBURGH