A new psychological contract has to come in to engage a developing workforce, said Bob Hughes, director of the Engage for Success Foundation, in an interview with Debbie Lovewell-Tuck, deputy editor of Employee Benefits.

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He said: ”Things have changed so much in the workplace, the whole world of work is changing.

“Companies are de-layering, organisations have gotten more complex, and people don’t have the opportunity of getting rewarded from going up the ladder anymore.”

“A new contract has to come in. We have to recognise that people aren’t there for the duration, but we have to do our best to engage them and get the most out of them in the time they are working with us.

“That’s the contract on both sides: we have to make the environment work for them and in return they deliver good-quality work.”

Hughes shared his views on ‘The workplace of the future’ at the Employee Benefits Summit in Alicante, Spain on 14-16 May.