LEGAL ASPECTS AND EFFECT WORK FAMILY CONFLICT, JOB INSECURITY, AND TRANSFORMATIONAL LEADERSHIP STYLE ON TURNOVER INTENTION

Abstract

Purpose: The objective of this study is to analyze the relationship between legal aspects, work-family conflict, job insecurity, transformational leadership style, and turnover intention..
 Theoretical framework: The role theory proposed by Khan et al. (1964) emphasizes the individual's social role and how it effects his conduct in the workplace and society.
 Design/methodology/approach: This investigation is quantitative in nature. The subjects of this study were 200 SME employees in Palopo City who were selected using a procedure of random sampling. Through social media, online questionnaires with a Likert scale ranging from 1 to 5 were distributed to collect data. The study employed Structural Equation Modeling (SEM), whereas SmartPLS 3.0 was used for data processing.
 Findings: Legal aspects play a crucial role in determining the level of work-family conflict, job insecurity, transformational leadership style, and turnover intention in an organization. For instance, laws and regulations pertaining to employment contracts, compensation, benefits, and job security can directly impact an employee's level of job satisfaction and intention to leave their job. Additionally, legal requirements such as mandatory leave and flexible working arrangements can reduce work-family conflict and enhance employee well-being. Moreover, legal frameworks for leadership development and training can foster transformational leadership styles that have been shown to decrease turnover intention among employees. Therefore, understanding the legal aspects that impact the workforce can help organizations develop effective policies and practices that address work-family conflict, job insecurity, and leadership style, and ultimately reduce turnover intention among their employees.
 Research, Practical & Social implications: Legal aspects are crucial for the development and success of small and medium-sized enterprises (SMEs) in Indonesia. Compliance with employment laws and regulations, such as those related to labor rights, employee benefits, and job security, can help SMEs to attract and retain skilled and talented employees. Moreover, transformational leadership styles, which have been shown to enhance employee engagement and job satisfaction, can be developed and nurtured through legal frameworks such as leadership training programs. By understanding and complying with legal aspects and providing effective leadership training, SMEs in Indonesia can improve their employee productivity, foster innovation and growth, and ultimately contribute to the economic development of both the organization and the country as a whole.
 Originality/value: This study explores the relationship between family conflict, Job Insecurity, and Transformational Leadership Style on turnover intention, and psychological attachment that has not been explored theoretically and tested empirically in the Indonesian context.