Relational Leadership And Employee Retention: The Role Of Job Satisfaction And Employee Participation Of Commercial Banks In The Accra Metropolis

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.