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When the Coffee Runs Dry: The Psychological Contract at Work

Never take away free coffee at work, Starbucks has a new CEO & sometimes the Boss forgets to show up for an interview

I judge a restaurant by the bread and by the coffee."

Burt Lancaster

There will be several mentions of coffee in this edition of The Deputy. You can drink any coffee out there, but if you want coffee beans that are roasted like someone cares, check out Sumato Coffee ☕️

In today’s email:

  • Job News: When the Coffee Runs Dry

  • Overheard at coffee: Let’s make Starbucks Great Again

  • Trending AI Tools: GitHub Copilot, an AI-enabled developer tool

  • Hot Jobs: (keep scrolling down ⬇️)

  • Recruiting Fails: Ghosted by the Boss? Don’t Sweat It 

Job News

When the Coffee Runs Dry: The Psychological Contract at Work

Let’s talk about the real contract at work—the one that’s not on paper, but in your head. You know, the unspoken agreement that says, "I’ll give you my time, energy, and skills, and in return, you’ll give me fair pay, a good environment, and, please, for the love of all things caffeinated, free coffee."

This invisible agreement is what organizational nerds call the "psychological contract," and it’s the silent force that keeps employees happy—or not.

 Where It All Began

The term "psychological contract" first popped up in the 1960s (Hat tip to organizational scholar Chris Argyris)  thanks to some curious organizational scholars. They noticed that employees had expectations beyond their official job descriptions—like fair treatment, growth opportunities, and yes, even free coffee. These expectations weren’t written down, but they were very real. When these invisible promises are kept, everyone’s happy. When they’re broken? Well, chaos ensues.

The Great Coffee Debacle

Imagine this: Your company has been providing free coffee since forever. It’s the lifeblood of your mornings, the glue that holds your sanity together during those endless meetings. But one day, management decides to cut costs. The solution? No more free coffee.

At first, you think it’s a joke. But then reality hits. The coffee machines are gone, and in their place, a sad little vending machine that charges for every cup. The result? Morale tanks faster than a poorly made latte.

One employee, let’s call her Jane, had been with the company for years. She wasn’t asking for much—just a good cup of coffee to kick start her day. But when the free coffee vanished, so did her goodwill. Jane started feeling undervalued and wondered what would be cut next. Was it just coffee, or did this signal deeper issues? Before long, Jane and others were updating their resumes, feeling that the company no longer cared about the little things that made their workdays bearable.

The Breach: It’s More Than Just Coffee

When a company takes away something as simple as free coffee, it’s more than a financial decision—it’s a breach of the psychological contract. Employees feel betrayed, and trust erodes. It’s like promising someone the moon and then giving them a rock. Sure, it’s still something, but it’s not what they signed up for.

This breach isn’t limited to coffee. It happens with promotions that never come, promises of flexibility that turn into more rigid schedules, or “work-life balance” that’s all work and no life. When these breaches occur, morale dips, and productivity often follows.

Adapting to a Shaky Contract

So, how do you deal when your psychological contract starts feeling more like a psychological warfare?

1. Speak Up: If the coffee’s gone and it’s killing your vibe, say something. It might feel awkward, but addressing small issues can prevent bigger ones later. Maybe the boss doesn’t realize how much that caffeine boost means to everyone.

2. Adjust Expectations: Sometimes, you have to roll with the punches. If you see changes coming, try to recalibrate what you expect from your job. It’s not ideal, but being adaptable can help you keep your sanity.

3. Remember Your Value: Coffee or no coffee, your worth isn’t tied to perks. Keep the big picture in mind and don’t let small changes dictate your entire work experience.

Final Sip

The psychological contract is a tricky thing—always changing, often fragile, and easily overlooked. But when it’s breached, even by something as seemingly insignificant as free coffee, it can shake up the workplace. So, keep an eye on those unspoken agreements, speak up when something feels off, and remember that sometimes, it’s about more than just the coffee.

PS - if you are at the point of cutting coffee, there is a long line of companies, such as Yahoo in 2013, Best Buy in 2009, Tim Hortons oddly enough in 2018 and Lloyds Bank in 2015. Each of these companies cut coffee but later reversed the decision.

Overheard at coffee ☕️

Oh and speaking of coffee…Starbucks has a new CEO. Meet Brian Niccol, who is coming out of Chipotle. On a personal note, I go for the Steak bowl w/ guacamole and yes I know it’s extra. But I digress…

Starbucks has been on a quest to become the third place to meet friends but their sales have slowed over the past few quarters and activist investors have been coming down hard on Starbucks. So Starbucks decided to replace their CEO.

Starbucks investors celebrated the CEO move sending shares up earlier this week but besides having 5 mutual LinkedIn connections to myself, who is Brian Niccol

He is a turnaround guy who has taken from Chipotle from $6B in market cap to over $60B in the past 6 years. He is known as someone who can craft a compelling vision, build a team around it and hold everyone accountable. This sounds simple but it’s not easy. He did it at Chipotle and Taco Bell before that.

Rumor has it that Brian likes a hot Americano at 5:45AM before his morning workout. 

Let’s go Brian! I like my first cup home, made via the French Press and I now let my 14 year old son take sips with me. 

Let’s make Starbucks Great Again!

🚀  eBay’s CTO, Mazen Rawashdeh predicts that eBay’s software developers will be 15% to 20% more productive within the next two years thanks to AI. To achieve those gains, eBay has relied partly on GitHub Copilot, an AI-enabled developer tool that can autocomplete code for programmers so they can do their jobs faster.

Everyone wants to do their job faster so we can buy more stuff on eBay, right?

🔥 Hot Jobs - $1K Referral Fee

Recruiting Fails: Ghosted by the Boss? Don’t Sweat It

So, picture this: We had an executive-level candidate hop on a plane, jet across the country, and suit up to meet with a client. But guess what? The highest-ranking exec on the hiring panel pulled a Houdini and didn’t show up. Yep, totally blew off the interview. And here’s the kicker—this isn’t the first time this “top dog” has ghosted a candidate. Seriously.

But hey, candidates, don’t take it personally. Sometimes, people in high places get so wrapped up in their own world that they forget the basics, like showing up. Maybe they’re stressed, maybe they’re lazy, or maybe they’ve just checked out or acting like a jerk. Who knows? What we do know is that this kind of thing happens, and it’s not a reflection on you.

So keep your chin up. If they can’t respect your time now, imagine what it’s like working under them. Sometimes, a missed interview is a blessing in disguise. On to bigger and better opportunities, where people actually give a damn.

Do you have recruiting Fail Stories?Reply with your epic fails – we'll feature them. Own your blunders, embrace vulnerability, and let's all level up together.

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