Unspoken Agreements: The Power of Psychological Contracts in Organisational Change

 

Unspoken Agreements: The Power of Psychological Contracts in Organisational Change

When organisations shift, be it through restructuring, role changes, or cultural transformation, the focus is often on the visible: job titles, processes, and policies. But beneath all that, something more subtle but just as critical is taking shape (or falling apart): the psychological contract.

It’s not written down. You won’t find it in your induction pack. But it’s there, shaping how we show up, how safe we feel, and how we relate to those we work with.

As someone who has led and worked alongside frontline staff, carers, nurses, and managers for over three decades, I’ve learnt this: when psychological contracts are not acknowledged and nurtured, working relationships can quietly unravel—and during change, the damage compounds.

Let’s explore this through a trauma-informed lens.

What is a Psychological Contract?

Simply put, a psychological contract is the unspoken agreement between people at work - what we expect from each other beyond what’s written in a contract.

It includes things like:

• “I’ll support you if you’re struggling.”
• “I expect to be included in decisions that affect my work.”
• “We don't throw each other under the bus when things go wrong.”

These expectations form quickly when working with someone new, especially during periods of organisational change when people are searching for stability, clarity, and trust.

Why Trauma-Informed Awareness Matters

When we work through a trauma-informed lens, we recognise that people carry histories, some known, most invisible. For many, change can echo previous experiences of uncertainty, abandonment, or betrayal. So even well-intentioned shifts can feel like breaches of trust if they aren’t handled with care.

If someone has a trauma history (that will be all of us, then!), the stakes are higher. Safety, predictability, and relationship dynamics become even more vital.

Without explicit conversations, people create their own internal contracts. And when those unspoken agreements are unintentionally broken, the fallout can include:

• Withdrawal or people “checking out”
• Heightened emotional responses
• Distrust, micro-conflicts, or passive resistance
• Breakdown in communication and collaboration

Not because people are difficult, but because the nervous system is wired for safety.

A Case in Point

I once supported a team through a merger. Two brilliant senior staff, both with years of experience, were expected to “just get on with it”. No facilitated time to build rapport. No conversation about how they’d make decisions together or give each other feedback.

Six weeks in, things went sour.

Each thought the other was undermining them. Meetings became awkward. Staff were confused about leadership direction. Productivity dipped. One even considered resigning.

What had happened? Their psychological contract had never been formed.

One had assumed a shared decision-making approach. The other expected to lead with autonomy. Both felt unseen, unsafe, and slightly betrayed, even though no harm was intended.

Setting the Contract: A Trauma-Informed Approach

Whether you're a leader, peer, or coach, setting a psychological contract doesn’t need to be formal, but it does need to be intentional.

Here’s how:

1. Start with Safety

Open with a grounding check-in. “What do you need to feel safe and supported as we work together?” This isn’t therapy; it’s about building a foundation for mutual respect.

2. Name the Unspoken

Invite dialogue around expectations. “What helps you thrive in a working relationship?” “What has worked well, or not so well, for you in previous transitions?”

3. Agree on Repair

We will get it wrong sometimes. Agree upfront how you’ll navigate this. “If we feel something’s off, can we agree to talk it through early?”

4. Normalise Check-ins

Set recurring time aside, not just task-based meetings, but relational check-ins. It prevents assumptions from growing into resentments.

How to Correct a Broken Psychological Contract

If you're reading this thinking, “We've missed the mark,” you’re not alone. Many organisations only realise the contract’s importance once tensions rise.

Here’s how to reset:

🌱 Acknowledge the Rupture

Start with ownership. “I think we missed a step when we started working together; I’d love to go back and get on the same page.”

🌱 Create Space for Truth

Ask open questions in a calm, non-defensive tone:

• “Is there something you’ve been carrying that we haven’t talked about?”
• “What’s felt unclear, unsafe, or frustrating lately?”

🌱 Apologise Without Excuses

A sincere, “I see how that impacted you, and I’m sorry,” goes a long way, even if intentions were good.

🌱 Reset the Agreement

Co-create a new way forward. Document it if helpful, but the main goal is mutual clarity and felt safety. “Let’s talk about how we want to work, communicate, and support each other moving forward.”

🌱 Keep Checking In

Repair isn’t a one-time fix; it’s a new rhythm. Keep showing up with curiosity and compassion.

Final Thoughts & Your Next Step

During organisational change, it’s tempting to rush ahead and fix systems. But people aren’t systems. They’re relational, responsive, and shaped by what’s gone before.

A trauma-informed approach invites us to slow down long enough to form, or re-form, the invisible contracts that hold teams together.

Walk the talk!

Because when people feel seen, heard, and safe, everything else has a chance to flourish.

With love, Caron 🗣👂🦻💜