The Impact of Transformational Leadership on Job Satisfaction and Employee Turnover Intentions: A Conceptual Review

Abstract

All employees deserve a decent working environment in order to be productive in their work. High employee turnover has adverse effects on economic growth as companies incur additional costs and experience drop in productivity. Hence, identifying the factors that reduce employee turnover intention is in line with Sustainable Development Goals. This review paper aims to improve our understanding of the relationship between transformational leadership style and job satisfaction, and examines their impact on reducing employee turnover intention. The literature review has proved that transformational leadership and job satisfaction greatly influence an employee’s decision to leave or stay with his or her organisation. Based on the literature, this paper also provides recommendations for future research areas that would provide valuable information in helping organisations reduce employee turnover intention, and ultimately employee turnover.

The Impact of Transformational Leadership on Employees’ Job Satisfaction: A Conceptual Model

“…Furthermore, transformational leadership is the process through which an individual interacts with others and establishes a bond that enhances the level of motivation and morality in both the leader and the follower (Northouse, 2021). Over time, a transformational leader may align organizational goals and individual goals by developing a personal and meaningful relationship with his or her followers, aligning followers' moral values, and guiding followers' behaviors (Gan & Voon, 2021). The model of transformational leadership includes the following dimensions: idealized influence, inspirational motivation, intellectual stimulation, individualized consideration, empowerment and personal recognition.…”

Innovative Work Behaviour as a Mediator Between Transformational Leadership and Employee Retention

“…In understanding the impact of transformational approach to leadership on retaining the employees of the organization, [57], with the help of literature review found that the leadership approach that is transformational, greatly affects the decision of the employees whether to leave or to stay in the organization. [58], stated in his study that transformational leadership approach will encourage employees to perform well and so their performance increases.…”

Measuring the Relationship Between Leadership Styles and Destructive Leadership Behaviors Among Air Force Students Attending Army Command and General Staff College

“…Leadership directly impacts successful recruitment and retention of talent and will influence the Air Force's ability to overcome these two human relations management challenges. It has been found through research that transformational leadership increases employee retention through increased levels of organizational citizenship behavior and communication (Tian et al, 2020), improved job satisfaction and lower levels of departure intentions (Gan & Voon, 2021), increased organizational performance especially during times of high competitive advantage (Yamin, 2020), and increased innovation among Generation-Z employees resulting in decreased turnover (Gabriel et al, 2022). Research also found that transformational leadership was important in attracting talent, beyond other salary and benefit compensation (Mangisa et al, 2020).…”