Employees’ retention in Nigeria’s hospitality industry: The role of transformational leadership style and job satisfaction

Abstract

Studies have shown the benefits and importance of leadership styles in service producing industries, to promote employees’ overall well-being. This study was designed to examine interaction among the transformational style of leadership and job satisfaction, life satisfaction and turnover intention of employees. A total of 324 questionnaires were administered to the employees of six functioning universities’ guesthouses in South-West, Nigeria. Structural Equation Modeling was used for assessing the fit of the model. Findings indicated that idealized influence, inspirational motivation, intellectual stimulation, and individualized consideration improved job satisfaction, and inversely affected turnover intention. In addition, life satisfaction was enhanced by idealized influence and individualized consideration, while inspirational motivation and intellectual stimulation had no positive effect on life satisfaction. Life satisfaction was positively associated with job satisfaction, and negatively associated with turnover intention. Recommendations were made for the hospitality organizations to embrace transformational leadership style to improve employees’ work attitudes and behaviors. The managerial implications, study limitation and suggestion for further study were also discussed.