Psychological contracts refer to the implicit beliefs and informal expectations that underpin the relationship between workers and their employers. Traditionally understood as personal and relational, these contracts involve mutual perceptions of obligation, trust, and reciprocity. However, the rise of platform-mediated, algorithmically managed work within the gig economy presents new challenges to this conceptual framework. Digital labour platforms such as Uber, Deliveroo, and Fiverr operate as intermediaries between service providers and customers, replacing traditional management structures with automated systems that assign tasks, monitor performance, and enforce behavioural norms without direct human involvement.

In response to these shifts, researchers from Carnegie Mellon University, University College Cork, and the University of Limerick have proposed a novel expansion of psychological contract theory. Published in the Human Resource Management Journal, their article examines whether workers can develop psychological contracts with non-human agents—particularly with the algorithms that increasingly govern their work lives. As Professor Denise M. Rousseau of Carnegie Mellon notes, understanding how such contracts emerge and operate among app-based workers is essential to grasp the broader implications of digitalised labour relations. The study challenges existing assumptions and calls for a reconceptualisation of the psychological contract in light of technological transformation.

The authors argue that the algorithm should be considered a new organisational party within the employment relationship. Drawing from cognitive psychology, particularly the theory of mind, they explore how workers might attribute human-like qualities—such as intentions, preferences, and expectations—to the algorithmic systems they interact with daily. This human tendency to anthropomorphise non-human agents is well documented. It helps explain why a gig worker might perceive the algorithm not merely as a tool but as an actor with whom they have a relationship shaped by mutual expectations.

Such anthropomorphism may lead to developing psychological contracts with the algorithm itself. Workers might come to expect fairness, respect, responsiveness, or even loyalty from the algorithmic system, just as they would from a human supervisor. This introduces socioemotional elements into what is often assumed to be a purely transactional relationship. According to the authors, when workers believe the algorithm is capable of ‘thinking’ or ‘judging,’ they may expand the range of perceived exchanges to include non-material resources like recognition, dignity, or trust—expectations that can significantly influence job satisfaction and behaviour.

The article also highlights the importance of these findings for human resource management. As Ultan Sherman of University College Cork observes, the algorithm is not a neutral intermediary but a central actor shaped by those who design and maintain it. Understanding how workers interpret the algorithm’s role and their expectations can help organisations anticipate behavioural patterns, prevent perceived contract breaches, and foster better engagement. By acknowledging that workers form meaningful psychological ties even with non-human agents, HR professionals can tailor communication and policy strategies more effectively in algorithmically managed environments.

The research offers a compelling case for updating psychological contract theory to accommodate the realities of digitally mediated work. Although the interface has shifted from human to algorithm, the fundamental psychological processes that govern workers’ interpretations of obligation and reciprocity remain in play. As gig work continues to reshape labour markets globally, recognising the role of non-human agents in employment relationships is critical for scholars and practitioners alike. This evolving understanding will deepen theoretical insight and help ensure that emerging forms of work are managed ethically and sustainably.

More information: Ultan Sherman et al, Anthropomorphising the Algorithm: A ‘Theory of Mind’ Perspective on Psychological Contract Creation in Gig Work Arrangements, Human Resource Management Journal. DOI: 10.1111/1748-8583.12599

Journal information: Human Resource Management Journal Provided by Carnegie Mellon University