6. Engagement & Culture

The psychological contract

The ledger employees already keep

Use when

Imposing any constraint; diagnosing quiet quitting or sudden regretted exits

The psychological contract, shown as a sequence of 4 parts: Implicit promises, Breach, Violation, Withdrawal.
  1. 1

    Implicit promises

    Beliefs about the reciprocal deal: effort and loyalty for security, growth, flexibility.

  2. 2

    Breach

    The employer falls short of the perceived deal. Often unannounced: a mandate, a frozen band, a broken hint.

  3. 3

    Violation

    The emotional response to breach: trust drops, the deal is re-read as transactional.

  4. 4

    Withdrawal

    Discretionary effort goes first, then citizenship, then the person. Exit interviews say 'career growth'.

Breach of the unwritten contract is one of the best-evidenced predictors of withdrawal.

How to use it

Before any constraint lands, ask what implicit promise it contradicts and say that out loud first. The Open Ledger exists to make this contract explicit, priced, and disputable.

Card details

Model type
Sequence
Origin status
Established
Content last reviewed
28 July 2026

Origin

Established

Denise Rousseau, 1989; Psychological Contracts in Organizations, 1995.

Used in these workflows

Neighbouring models

NextThe Open Ledger

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