For many dairy farming businesses, June marks the start of new employment arrangements. Whether you’re welcoming fresh faces to the farm or stepping long-serving team members into new roles, it’s an important time to get things off on the right foot.
Most employment agreements do a good job of capturing what sits above the surface — the hours, pay, leave, duties and practical terms of the role.
But like any healthy working relationship, what happens beneath the surface matters just as much. That’s where the psychological contract comes in.
The psychological contract refers to the unspoken expectations and understandings that sit beneath the formal employment agreement. It’s the network of trust, respect, communication and mutual expectations that supports the employment relationship over time. When those foundations are healthy, people are more likely to feel valued, motivated and committed. When they’re neglected, issues can start to show above ground — even when the paperwork itself is technically correct.
What’s in the psychological contract?
The formal agreement usually captures the transactional side: the work to be done and the pay in return. But the psychological contract goes deeper. It’s about the unwritten promises and shared values that shape how people feel about working with you.
Employers often expect drive, innovation, leadership, flexibility, and even emotional investment from their teams.
Employees, on the other hand, tend to look for opportunities for growth and promotion, respect, work-life balance, interesting work, and the ability to have a say.
These expectations are often set right at the recruitment stage — through not just what’s said in interviews, but also how people are treated. In the first few weeks on the job, both sides quickly figure out if those early impressions hold true.
Why does it matter?
When employees feel the psychological contract is fair and balanced, trust and motivation thrive. But if they start to feel promises (spoken or unspoken) aren’t being honoured, or if the environment doesn’t match what was signalled, commitment can disappear fast.
How to keep things strong
Whether you’re the employer or the employee, here are a few simple ways to protect and strengthen the psychological contract on your farm:
Focus on genuine wellbeing: Make it a priority to help each other feel good and be happy at work.
Show you want to work together long term: Act in ways that reinforce you value the relationship.
Talk more, not less, when things are tough: If something’s not right, lean into communication — don’t retreat.
Have regular check-ins: Don’t wait for the annual review. Little issues can snowball if left unspoken.
Talk about more than work: Take time to ask, “How are you doing?” not just “How’s the job going?”
Ignoring the psychological contract (or the importance of people being happy at work) often leads to disengaged teams and less willingness to go the extra mile.
So as you head into the new season, remember: getting the employment paperwork right is essential, but looking after the psychological contract is what keeps your people — and your farm — performing at their best.
