The role of previous experience in the analysis of the psychological contract and its outcomes during the socialization process: a signalling theory perspective

Psychological contract theory has largely neglected the role of previous experience. In this study, we examine how previous work experience influences outcomes of communication with organizational insiders during organizational socialization among healthcare staff. We develop a model based on signalling theory, within which information acquisition during socialization is associated with psychological contract fulfilment, which is in turn is related to better health, happiness, and social relationships. Moderated mediation analysis based on data collected at entry and three months later confirms indirect effects between three types of information acquisition and three employee outcomes via the mediating role of psychological contract fulfilment. Importantly, these indirect effects are present only for inexperienced newcomers. Our findings build on signalling theory and add to knowledge about how the psychological contract forms during early socialization. They also suggest that organizations should pay particular attention to inducting inexperienced newcomers.