How Do Transformational Leadership and The Work Environment Affects Employee Retention?

Abstract

The hotel property business is projected to be more prospective in the coming years compared to last year. This is in line with the recovery of the tourism business and the increasingly controlled Covid-19 pandemic. This study examines the impact of a transformational leadership style of work and environment on employee retention in the hospitality sector. Cross-sectional survey data are gathered in this quantitative study. Data was collected using a simple random sampling from 40 low-level managerial employees and non-managerial employees of Ocean View Residence Hotel in Jepara. The questionnaire was given to the selected sample to get the needed data, and SPSS was used to analyze the data. This study demonstrates that a transformational leadership approach and work environment positively and significantly affect employee retention. Positive employee perceptions of the workplace and effective leadership can lessen turnover plans. According to the results of the current study, hotels need to identify the best leadership style to create environments that encourage employees to stay committed and focused on maintaining high morale and lowering staff turnover.

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