TRANSFORMATIONAL LEADERSHIP AND EMPLOYEE RETENTION IN SERVICE INDUSTRIES

Authors

  • Hina Qureshi Department of Business Administration, University of Karachi, Pakistan. Author
  • Saad Ahmed Department of Business Administration, University of Karachi, Pakistan. Author

DOI:

https://doi.org/10.71465/mrcis127

Keywords:

transformational leadership, employee retention, service industry, motivation, organizational commitment, leadership behavior, turnover intention, employee satisfaction

Abstract

Transformational leadership has emerged as a key determinant of employee retention, especially in service-oriented industries where human capital forms the backbone of organizational success. This study explores the relationship between transformational leadership behaviors—such as inspirational motivation, individualized consideration, intellectual stimulation, and idealized influence—and employee retention in service sectors including hospitality, healthcare, and banking. The findings suggest that transformational leaders foster an environment of trust, empowerment, and engagement that significantly reduces turnover intention. The article emphasizes that leadership development programs focused on emotional intelligence, communication, and recognition can enhance employee commitment and satisfaction, leading to long-term retention and sustainable organizational performance.

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Published

2025-08-03