This article is written by Sue Williamson, Senior Lecturer, Human Resource Management, UNSW Canberra and Linda Colley, Associate Professor, Human Resource Management/Industrial Relations, CQUniversity

This article is part of the 'Build your leadership skills in the public service' boot camp. Sign up here.

The concept of “trust” is in vogue right now.

At the time of writing, almost two-thirds of Australians say they trust the government during this time of pandemic — and the number has been rising over the past few weeks. Articles abound on how to create trust: throughout a nation, and within organisations, stakeholders, and teams.

In the same vein, much information is available on how to create an organisational culture of trust. This article, for example, explains that trust is based on logic (ie. an employee believes their manager’s reasoning is sound), authenticity (the employee can bring their “whole self” to work), and empathy (the employee believes the manager cares about them).

During this time of Covid-19 where knowledge workers are working from home, trust is again being considered by managers and employees

While their perspectives on trust differ, these authors all share a common understanding, albeit implicitly, of the underlying psychological contract, which exists between a manager and an employee. This contract is unwritten and starts when an employee joins the organisation.

As Professor David Guest explains, the psychological contract encompasses the perceptions of managers and individuals of the reciprocal promises and obligations implied in the employment relationship. For example, an employee can expect to be paid for a fair day’s work; and an employer can expect the work to be undertaken conscientiously and performed well.

Will managers trust their colleagues to work from home?

Trust is an important element of the psychological contract. During this time of Covid-19 where knowledge workers are working from home, trust is again being considered by managers and employees. Workers want to trust their organisation to provide a safe working environment. Managers want to trust their employees to successfully work at home.

In research examining how public sector managers enable flexible working, my colleagues and I identified a number of issues around trust and working from home. We conducted interviews and 40 focus groups with almost 300 managers. Flexible work arrangements, including working from home, featured prominently in these discussions.

While daily interaction between managers and employees is more cumbersome during the pandemic, the same principles and processes of performance management apply

We found that firstly, many managers did not trust employees they could not see. Managers voiced stereotypes that employees would be watching Netflix instead of working. Research shows that employees who work from home adopt different strategies. They work in either a “time-based” or “task-based” manner. Time-based refers to undertaking more transactional tasks — of just getting the job done. Task-based involves more autonomy and occurs when employees are engaged in their work.

The challenge for managers is to provide those working from home with meaningful task-based work and a level of autonomy, so they are engaged. If the tasks are more mundane, then other, extrinsic rewards are required (such as the promise of more interesting work or professional development). Additionally, lower-level employees who undertake time-based work benefit from more frequent communication with their manager than do employees who undertake task-based work.

Measuring performance

Secondly, many managers did not know how to manage the performance of those working from home. While daily interaction between managers and employees is more cumbersome during the pandemic due to a reliance on technology, the same principles and processes of performance management apply. Assess employees on the work they are producing. Adopt an outcomes-based approach, rather than focusing on the time employees may be putting in.

Many managers expressed concerns about enabling underperformers to work from home. This position stems from a belief that working from home is a privilege, not a right. In normal circumstances, this would be correct. But during a pandemic, the ability to work from home moves closer to becoming a right, due to the need to provide a safe workplace for employees.

Researchers have even concluded that a new psychological contract is being developed between a manager, the employee, and their smartphone

If an employee is underperforming, managers should use the same performance management processes they would normally use. A reluctance to manage underperformers who work from home is not far removed from a manager's reluctance to have the difficult performance management conversation.

Adjusting to a new schedule

Thirdly, the concept of core hours can be incompatible with working from home, especially as parents balance work, caring responsibilities and homeschooling. As well as spatial flexibility, working from home is also changing working hours.

Many of the managers we spoke with accepted their employees working very flexible hours — others were less supportive. Again, this goes to trust and the importance of adopting an outcomes-based approach. Anecdotally, some Australian public sector agencies are removing the requirement for all employees to record their hours, which is an important symbolic demonstration of trust.

Articles abound on how managers should communicate with employees working from home. One aspect less considered, however, is that technology can influence the psychological contract. Researchers have even concluded that a new psychological contract is being developed between a manager, the employee, and their smartphone (or another device).

Working from home is changing the psychological contract

Organisations enabling working from home via technology carries an implicit assumption that employees will be constantly available. In order to avoid burnout and “technostress”, managers not only need to communicate with employees about work expectations and outputs, but also around expectations of employees’ availability and reachability. Maintaining a healthy psychological contract requires managers to ensure employees understand that they are not expected to be constantly available.

Working from home, and remote working is predicted to rise. Up to 30% of Australian employees may be working from home, and many of these employees will want to continue this working arrangement. After the pandemic, the technology and infrastructure will be in place, and the remaining resistance is likely to be behavioural, stemming from inflexible workplace cultures and individual managers.

Working from home is changing the psychological contract. How organisations, managers and employees navigate this emerging terrain will impact not only on how employees work, but also on the expectations of these different parties. — Dr Sue Williamson and Associate Professor Linda Colley

Dr Sue Williamson is a Senior Lecturer, Human Resource Management at UNSW Canberra.

Linda Colley is an Associate Professor, Human Resource Management and Industrial Relations at CQUniversity.

Both research gender equality in the public sector, and are currently focusing on how public sector employees are working from home.

(Picture credit: Death to the stock photo)