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

School of Business, Faculty of Business, Design and Arts, Swinburne University of Technology Sarawak Campus

^* Corresponding author: evelyngan@gmail.com

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.