Factors Affecting Employee’s Retention: Integration of Situational Leadership With Social Exchange Theory

Abstract

Sketching on the Social Exchange Theory (SET), the present study aims to investigate the direct relationship between training and development, work environment, and job satisfaction with employee retention. The contingent role of transformational leadership was also analysed under the Situational Leadership Theory (SLT). Accordingly, we collected data from 287 employees of SMEs in northern China by employing a convenience sampling approach, exhibiting a response rate of 57.40 percent. The Partial Least Square-Structural Equation Modelling (PLS-SEM) analysis was then run to test the proposed hypotheses. The findings revealed a significant positive impact of training and development, work environment, and job satisfaction on employee retention. However, no moderating effect of transformational leadership was indicated on their direct relationship. This study has enriched the literature on employee retention and the leadership arena. To the best of the authors’ knowledge, there is no prior evidence concerning the study’s integrated relationship of the continuous variables. The implications and limitations were finally expressed at the end of this manuscript.

Turnover intention of nurses in public hospitals and its association with quality of working life: a cross-sectional survey in six provinces in China

“…Indeed, the intention to leave has been identified as a reliable predictor of nurses’ turnover ( 29 ). According to the social exchange theory, individuals who benefit from others feel obligated to reciprocate with positive behaviors and devotion ( 30 ). Herzberg’s two-factor theory categorizes motivational strategies into two broad types: the intrinsic sense of achievement, reflected through recognition and responsibility, is believed to better motivate employees compared to extrinsic rewards, such as high pay ( 31 ).…”

Effort to Prevent and Reduce Employee Turnover Intention in The Hospitality

“…The core principle of this theory, reciprocity, establishes that after receiving favorable treatment, a person is compelled to reciprocate with positive actions (Blau, 1964); (Gouldner, A, 1960). This implies that a person who benefits from the actions of others feels obligated to respond with positive behavior and commitment (Xuecheng et al, 2022). Eisenberger (2002) found that employees who had strong beliefs in social exchange tended to be more willing to contribute to the organization, perceive higher levels of support from the organization, and exhibit lower levels of absenteeism (Akgunduz et al, 2018).…”

Pengaruh Training and Development, Servant Leadership, Dan Reward Terhadap Employee Retention Di Mediasi Oleh Employee Engagement Pada Restoran Di Kota Batam

“…Training development adalah proses yang dilakukan oleh perusahaan atau organisasi untuk meningkatkan pengetahuan, keterampilan, dan kemampuan karyawan mereka agar dapat lebih efektif dalam menjalankan tugas-tugas pekerjaan mereka. (Xuecheng et al, 2022). Organisasi yang berinvestasi dalam program pelatihan yang efektif cenderung memiliki tim yang lebih terampil, motivasi, dan siap untuk menghadapi tantangan yang terkait dengan industri makanan dan minuman yang dinamis…”