The Influence of Pull Factors on Inter-organisational Labour Mobility in the Public Sector: The Moderating Role of Transformational Leadership

Abstract

This study assesses how pull factors affect inter-organisational labour mobility, including the role of transformational leadership as a moderator. With the aid of SmartPLS3.2.7, quantitative data from a survey of 333 employees of government agencies were analysed using Partial least Squares Structural Equation Modeling. The results revealed that both compensation and training and development positively influence inter-organisational labour mobility. Furthermore, results indicated a significant moderating effect of transformational leadership on the influence of compensation on inter-organisational labour mobility, and that transformational leadership moderates the influence of training and development on inter-organisational labour mobility. Consistent with Social Exchange Theory and Herzberg’s Two Factor Theory, the results have revealed the relevance of pull factors in explaining inter-organisational labour mobility. Furthermore, the research has provided human resource managers, all managerial personnel and policymakers with insights into the interaction effect between pull factors and transformational leadership on inter-organisational labour mobility to enhance employee retention. The results suggest that organisations should establish transformational leadership training programs, so as to equip all managerial personnel with the vital employees retention skills. The study has theoretically verified that under the influence of the Social Exchange Theory, transformational leadership can interact with pull variables and diminish their effects on inter-organisational labour mobility in the Tanzanian setting, thus adding new knowledge to the current labour mobility model. The limitations of this study form avenues for further research. For instance, considering the interaction effect of pull and push factors and transformational leadership on inter-organisational labour mobility may generate additional insights.