The Effect of Transformational Leadership on Turnover Intention: The Mediating Role of Psychological Safety and Work Engagement among Generation Z Employees

Irfan Pangestu; Muafi Muafi

doi:10.55927/fjmr.v5i7.133

Authors

Irfan Pangestu Universitas Islam Indonesia
Muafi Muafi Universitas Islam Indonesia

DOI:

https://doi.org/10.55927/fjmr.v5i7.133

Keywords:

Transformational Leadership, Psychological Safety, Work Engagement, Turnover Intention, Generation Z

Abstract

The impact of transformational leadership on Generation Z employees is a challenge for organizations because it increases recruitment costs, disrupts workforce stability, and decreases organizational performance. Although transformational leadership has been shown to reduce turnover intention, the psychological mechanisms that explain this relationship have not been widely studied through the integration of psychological safety and work engagement, especially in the context of Generation Z employees in Indonesia. This study aims to analyze the effect of transformational leadership on turnover intention with the mediating role of psychological safety and work engagement on Generation Z employees in the service sector in Yogyakarta City. The study used a quantitative approach with a survey method of 293 respondents selected through purposive sampling. Data were analyzed using Partial Least Squares Structural Equation Modeling (PLS-SEM) with SmartPLS 4. The results showed that transformational leadership has a positive effect on psychological safety and work engagement, and a negative effect on turnover intention. In addition, psychological safety and work engagement were shown to partially mediate the relationship between transformational leadership and turnover intention. These findings confirm that transformational leadership can reduce turnover intention both directly and through increasing psychological safety and work engagement.

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