Can Strategic Agility Help Retain Public Sector Employees in Times of Uncertainty? A Longitudinal Study

Abstract

The world is undergoing significant transformations that compel leaders to embrace more resilient and agile approaches to sustain positive organizational performance. While research concerning organizational strategic agility is growing, its value and application in the public sector are under-researched. This paper aims to explore the role of organizational strategic agility (OSA) in public sector organizations, how perceived OSA contributes to employee intentions to stay, and identify whether this effect is sustained over times of uncertainty. We use a longitudinal study and panel data from the public sector annual engagement survey before, during, and after the COVID-19 crisis, and perform a fixed-effect OLS regression to empirically analyze the impact of the employee perception of trust in leadership, supervisor support, and organizational strategic agility on employee intention to stay (ITS). The findings provide evidence of the value of organizational strategic agility for employees of the organization as a factor positively contributing to intentions to stay in times of uncertainty and identify trust in leadership as an essential contributor to developing OSA in the public sector. It contributes to understanding the value of organizational strategic agility for employees inside the organization in times of uncertainty. It captures the positive effect on employees over organizational and time effects, thus providing evidence of sustained impact.

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