The Impact of Transformational Leadership (as a Non- Monetary Method) on Reducing Employee Voluntary Turnover “An Empirical Study on the Mobile Communication Sector in Egypt”

Abstract

The study of transformational leadership behaviors has gained the interest of many researchers, however studies regarding its impact as a non- monetary retention tool for employees still rare in the literatures. This paper reports an empirical study that investigated the impact of transformational leadership and each of it`s behaviors (as a non- monetary method) on reducing employees voluntary turnover. A sample of 500 employees from all the Mobile service providers that are currently operating in Egypt was studied. Transformational leadership was measured through five behaviors: idealized influence attribute; idealized influence behavior; inspirational motivation; intellectual stimulation; individualized consideration, using Bass and Avolio (1997) Multifactor Leadership Questionnaire. Leaders, self- rated their acquisitions of transformational leadership behaviors. Sample was investigated and research findings were analyzed by using descriptive statistical techniques, Cronbach`s alpha, Coefficient of correlation matrix, Regression analysis, and analysis of variance. Results showed that there is a significant negative strong relationship between transformational leadership and each of it`s behaviors and employee voluntary turnover. In addition, it empirically concluded that idealized influence attribute and individualized consideration are the transformational leadership behaviors that have the highest impact on employee voluntary turnover. Key words: Transformational leadership - Idealized influence (attribute and behavior)- Inspirational motivation - Intellectual stimulation - Individualized consideration- Voluntary turnover.