The Impact of Transformational Leadership on Turnover Intentions Directly and Through Talent Engagement in the Banking Sector of Twin Cities of Pakistan

Abstract

The aim of this study was to investigate the relationship between transformational leadership and turnover intentions among the managers in the banking sector in the twin cities of Pakistan. This study filled the literature gap by exploring the role of talent engagement (job engagement and organization engagement) inthe relationship between transformational leadership and turnover intentions among banking sector employees. A total of 450 questionnaires were distributed among top five banks branches operating in twin cities of Pakistan. Structural Equation Modeling (SEM-AMOS) was used to test the hypotheses. Results of the study portrayed that transformational leadership had a significant negative relationship with turnover intentions. An interesting finding of this study is that the organization engagement mediated the relationship between transformational leadership and turnover intentions but the job engagement did not mediate the relationship between transformational leadership and turnover intentions. The findings of this study have significance for the top management of the banking sector, to implement talent engagement in two dimensions properly. Management of banking sector should implement transformational leadership along with talent engagement (job engagement and organization engagement) to reduce the turnover intentions of managers.