Investigating turnover intention in a financial organisation in Gauteng

Abstract

Orientation: Losing employees prompts organisational competitiveness, which leads to increased financial organisation costs related to talent acquisition.

Research purpose: This study aimed to determine the relationship between authentic leadership and turnover intention and establish whether job satisfaction mediated the relationship between authentic leadership and turnover intention. Additionally, this study endeavoured to establish if the relation between authentic leadership, job satisfaction, and turnover intention is higher among post-Grade 12 employees than those with Grade 12 and lower qualifications.

Motivation for the study: There is limited research in the Gauteng financial sector concerning how job satisfaction is mediated and how education has diminished the relationship between authentic leadership and alleviating turnover intention.

Research approach/design and method: This study was influenced by the positivism paradigm and was quantitative, using an online survey to collect the data. The final sample consisted of 85 respondents.

Main findings: It was also established that authentic leadership did not significantly relate to turnover intention, while job satisfaction was a mediator between authentic leadership and turnover intention.

Practical/managerial implications: The significance of the study is that when employees are satisfied with leadership support, they provide honest and truthful feedback. This is especially true when employees work in an inclusive and harmonious work environment; thus, their turnover intention diminishes. This is very positive for finance organisations, which will incur talent acquisition costs as intention does not result in resignation.

Contribution/added value: This study developed a framework on how authentic leadership and job satisfaction indicators can diminish turnover intention.