Engaging Startup Employees via Charismatic Leadership Communication: The Importance of Communicating “Vision, Passion, and Care”

Abstract

This study explores how startup leadership communication influences employee outcomes. Specifically, drawing upon interdisciplinary insight from public relations, leadership, and managerial psychology, this study tests how startup CEO charismatic leadership communication, which is characterized by envisioning, energizing, and enabling behaviors help nurture quality employee relationships with the startup and engage startup employees. Employees’ psychological need satisfaction was examined as a potential mediator in this process. This study sets its context in mainland China where startups are rapidly developing alongside increased governmental policy and financial support encouraging innovation. Through a quantitative survey of 1,027 Chinese startup employees from a variety of industries in China, this study showed that startup leader charismatic communication meets employee psychological need for autonomy, competence, and relatedness, which ultimately contributes to quality employee-startup relationships and employee engagement. This study provides important theoretical implications for public relations, internal communication and management scholars and offer practical insights for entrepreneurs and startup leaders on how to utilize strategic communication to engage startup employees.