Abstract:
The study examined the influence of relational leadership on employee retention
by assessing the mediating role of job satisfaction and employee participation of
commercial banks in the Accra Metropolis. Specifically, the objectives were to;
determine the effect of relational leadership on employee retention; analyse the
effect of relational leadership on job satisfaction; determine the effect of relational
leadership on employee participation; determine the effect of job satisfaction on
employee retention; examine the effect of employee participation on employee
retention; examine the mediation role of job satisfaction on the nexus between
relational leadership on employee retention; and assess the mediation role of
employee participation of the link between relational leadership on employee
retention. The study used the positive philosophy which adopts the quantitative
approach to research and eventually, applied the explanatory research design.
Using responses from 950 employees of commercial banks in the Accra
Metropolis, 271 were sampled. In all, using the simple random technique, 271
valid responses were obtained, thus a 98.9% response rate. The partially least
square structural equation modeling was employed to analyze the data and test
hypotheses. The study found that relational leadership has a positive significant
effect on job satisfaction and employee participation. Also, relational leadership
and job satisfaction are significant predictors of employee retention. Again, the
findings also revealed that job satisfaction partially mediates the relationship
between relational leadership and employee retention of commercial banks.
Moreover, it was established that employee participation does not influence employee orientation, and also employee participation does not mediate the
relation between relational leadership and employee retention. The study
concluded that the management of commercial banks should involve themselves
in maintaining better relationships with their employees. This can be done by
providing employees with more empowerment, care and vision, including them in
work related activities and decisions and treating them more ethically for
enhanced employee retention.
