The psychological contract
By Bob Levoy

In his classic article, “The Psychological Contract: Managing the Joining-Up Process,” John Paul Kotter defined the psychological contract as “an implicit contract between an individual and the organization, which specifies what each expects to give and receive from each other in the relationship.”¹

But that contract can be interpreted in a number of ways, based on each party's assumptions.

Reality check: Chiropractors often have unrealistic expectations about recently hired associates, and vice versa.Unspoken expectations often lead to disappointment and resentment on both sides.

When chiropractors enter into business relationships with entirely different agendas, and worse — never discuss these agendas, invariably one or both individuals are surprised when things don’t turn out as expected.

Chiropractors, for example, may be disappointed that recently hired associates:

• Haven’t networked with attorneys and allied healthcare practitioners who could make referrals to the practice;

• Spend too much time with patients;

• Haven’t taken an entrepreneurial interest in the practice;

• Have unrealistic expectations about compensation;

On the other hand, associates may be disappointed with:

• The long hours they’re expected to work;

• The pressure to work faster and produce more revenue;

• The lack of a “voice and a vote” in such matters as office policies, new equipment, or hiring decisions;

• The slow progress of increased compensation and benefits, and partnership status.

The failure to have up-front discussions about such matters is understandable.

A chiropractor doesn’t want to scare off a good candidate by making excessive demands about the future.

Likewise, a prospective associate doesn’t want to jeopardize a career opportunity by doing the same. But, without discussing such expectations at the start, it is unlikely that everyone will end up “on the same page.”

Action Step

Let a prospective associate know your priorities, reasonable expectations and the timetable you have in mind. Ask the associate to do the same. To reach agreement, negotiation and mutual compromise may be necessary

The more a new associate understands and agrees with the policies and priorities of your practice, the fewer surprises he or she will have later. Open communication will help you and a new associate better understand one another’s goals and will let you both know whether the match you’re considering is a good one.

Bob Levoy is a seminar speaker and writer. He can be reached at 516-626-1353.

REFERENCES
¹ California Management Review, Spring 1973