Issue 41

Accountability is the Real Currency of Trust

Author

Chris Hagood
June 12, 2025 • Estimated Reading Time: 8 minutes

In partnership with

Table of Contents

Opening Salvo

I’m just going to leave this right here.

Employees may sign offer letters, but what really binds them to an organization isn’t on paper. It’s the unspoken agreement they believe they’ve made: what they’ll give, and what they’ll get in return.

That’s the psychological contract and it’s more fragile than most leaders realize.

People don’t disengage because they dislike hard work. They disengage because the promises they trusted about growth, recognition, stability, or support aren’t being honored.

Here’s the part organizations need to face:
Every promotion held back without clarity, every “open-door” policy ignored, every performance conversation skipped silently rewrites the contract. And not in your favor.

Break the psychological contract often enough, and you don’t just lose employees, you keep the ones who’ve stopped believing.

Practical Personas (with a tinge of hyperbole)

  • The Silent Breaker: They don’t make explicit promises, but their behavior implies them until deadlines creep, recognition dries up, or development stalls. Then they act surprised when trust erodes.

  • The One-Way Leader: They expect commitment, stretch, and loyalty, but offer little visibility into how those contributions are rewarded. Their version of engagement is a one-way street.

  • The Mutual Investor: They treat the employee–employer relationship as an evolving agreement. They revisit expectations, honor commitments, and clarify shifts in real time.

Ask Yourself:

  • Are your recognition, promotion, or flexibility practices aligned with what employees believe they were promised?

  • Do your leaders explicitly revisit expectations as roles, business needs, or team dynamics change?

  • Is broken trust chalked up to “entitlement” or taken seriously as a signal?

The psychological contract can’t be managed reactively. It’s either reinforced deliberately or left to quietly collapse.

Did You See This?

From Policy to Practice: Encouraging Open Conversations About Mental Health

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Talent Management 101 (TM101)

The Psychological Contract: What It Is & Why It Matters

The psychological contract is the unwritten set of expectations between employer and employee. Unlike formal agreements, it’s shaped by culture, leadership behavior, and everyday experience.

Key Elements of the Psychological Contract:

  • Fairness: Are expectations consistent and equitably applied?

  • Development: Are there clear, accessible pathways for growth?

  • Trust: Do leaders deliver on what they say will happen?

  • Respect: Are employees treated as individuals, not just resources?

When the Contract Is Broken:

  • Engagement declines, even if retention numbers don’t

  • Top performers become quiet contributors

  • Skepticism replaces discretionary effort

How to Rebuild It:

  • Make implicit expectations explicit: Check for assumption gaps during onboarding, performance reviews, and team transitions.

  • Treat communication as a two-way obligation: Feedback and expectation-setting go both ways.

  • Repair openly when things break: Acknowledging missteps strengthens credibility more than avoiding them.

Employees don’t expect perfection. They expect accountability, which is the real currency of trust.

The Plug

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