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Purpose

The purpose of this paper is to highlight the importance of a number of factors in newcomers' psychological contract development.

Design/methodology/approach

The approach taken is a literature review with the development of a conceptual model.

Findings

The paper contributes to the psychological contract literature by adopting a sensemaking perspective and focusing on the role of newcomers' pre‐entry expectations and emotions on the psychological contract creation process. The authors also discuss the differential role of contract makers and facilitators and the modes they employ to influence newcomers' psychological contract creation.

Originality/value

Psychological contract research has emphasized the consequences of psychological contract breach and violation. The paper's aim is to direct attention at understanding the psychological contract in its very initial stages. The authors discuss implications for research and practice on managing psychological contract creation.

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