To telework or not to telework: Does the macro context matter? A signalling theory analysis of employee interpretations of telework in times of turbulence

Abstract

How do workers make sense of telework and respond to it in turbulent times? This study of a consultancy firm in Spain, during the 2008 financial crisis, explores employee interpretations of telework in the context of major macro-economic disruption. We draw on signalling theory to consider telework as a signal sent by the organisation and argue that the environment in which the signal occurs changes employees' interpretations. While telework is generally understood as an employee-centred practice, we find that in an economic crisis it is also interpreted as a potential threat for employees. Therefore, the meaning of telework is not predetermined, but continually shaped socially considering events beyond the boundaries of the firm. We propose adopting a social constructivist view to consider human resource (HR) practices as objects experienced and interpreted within their wider social contexts. We shed new light on signalling theory and HR studies by offering insights on the relevance of the signalling environment for interpreting messages, and bring forth the concept of “external fit”.