Post Meeting Notes: The New Deal at Work Advisory Breakfast

On 9^th October 2024, CRF hosted a breakfast discussion with senior HR practitioners to examine the evolving workplace psychological contract and its implications for HR. The discussion was chaired by Rob Briner, Director – Research at CRF, and will inform CRF’s upcoming research, The New Deal at Work: How is the Psychological Contract Changing?, to be published in September 2025. This summary shares some of the key insights from the session.

How Have Employee Expectations of the Psychological Contract Changed?

• Employee expectations are increasingly varied; there is no one-size-fits-all approach. Preferences range widely across demographics, experience levels and personal circumstances. For example, ‘Generation Rent’ may value travel and flexibility, while financially secure employees aged 50+ may prioritise early retirement. At the same time, there is variation within demographic groups (e.g. some early career employees prioritise corporate social responsibility (CSR) and purpose-driven work, while others are less concerned).
• Early careers talent tends to increasingly want rapid career progression, expecting quick ownership of tasks and exposure to strategic challenges. They are also highly mobile and will leave if their expectations are not met, which can create difficulties in justifying long-term investments in training and development.
• Employees are placing greater demands on managers, expecting regular feedback, access to senior leadership and high levels of capability.
• Flexibility remains a high priority, with many employees expecting options for hybrid or remote work. The experience of working from home during Covid-19 has led to expectations for continued flexibility, and many employees are reluctant to return to fully on-site arrangements. The hybrid working debate is ongoing, with some employers advocating for a return to the office due to a desire for control. Organisations will need to tap into intrinsic motivationto encourage workers back into the office.
• Continuous learning is viewed as essential, with employees expecting their employers to invest in their development as career paths become more fluid and subject to change.
• Employees are more outspoken on political and social issues, leading to increased tensions within teams and a need for leaders to address these matters carefully. Employees are also more cynical regarding pay disparities and the employment relations landscape is becoming more litigious and grievance prone.

How Are Employers Changing their Offering to Employees?

• As the expectations of employees evolve, employers are finding it increasingly difficult to maintain traditional control over the employer-employee relationship. It is important to recognise and embrace that the relationship is changing, with one member noting the importance of shifting the focus from control to empowering employees.
• Employers will need to offer more choice and individualisation, such as offering an individual wellbeing budget rather than a one-size-fits all approach. Learning is more personalised, with a need to curate offerings, rather than overwhelm employees with options.
• Employers are becoming increasingly flexible, such as moving beyond annual performance cycles and rigid structures.  The diversity of employee expectations has made it harder for employers to implement policies in a uniform manner.  
• There is a greater awareness of the importance of wellbeing and employers are now more open to addressing issues like neurodiversity and menopause. Employees also see benefits as a standard expectation rather than a reward for extra effort.
• Leaders and managers require extra support as they grapple with meeting extra demands. Transparency is crucial, as employees want to understand what is going on in the business.
• Performance management has become more critical than ever, with a greater need for documentation and feedback to avoid disputes over job expectations and employee performance.
• There is a greater focus on reskilling, with employers expected to invest in the continuous development of their workforce to keep pace with rapid changes in job requirements. There is also a shift to more skills-focused approaches and HR’s role in internal talent marketplaces will likely grow.
• Traditional career paths will continue to dissolve and employers will need to create more gig-like opportunities, such as secondments. Trust will be critical in this scenario; line managers will need to trust employees to move on and apply for new roles and additionally free up opportunities for talent mobility, rather than hanging on to their best people.

Further Reading
CRF. 2020. HR’s Agenda in the Organisation of the Future
CRF. 2024. A Manifesto for Future-Ready HR