Strength of HR signals and intent to stay: mediating role of psychological contract fulfillment

Abstract

PurposeThe study examined the relationship between human resource (HR) signals and intent to stay (ITS) in an attributional framework. It also investigated the mediating role of psychological contract fulfillment in the relationship between the strength of HR signal and ITS.Design/methodology/approachThe data were collected from 460 managers in the manufacturing sector from eastern India using a structured questionnaire. The study adopted a mediated structural equation model to test the model fit and hypotheses.FindingsThe study confirmed the relationship between the strength of the H R signal and the ITS, and the mediating role of psychological contract fulfillment between the strengths of HR signals and ITS. The study indicates a positive role of the psychological contract fulfillment in strengthening the effect of HR signals on ITS.Originality/valueThe study adds to the body of knowledge by confirming a signaling role of HR practices within the firm having the attributional ability. It also indicates the role of psychological contract fulfillment in employee retention.