EMOTIONAL INTELLIGENCE IN LEADERSHIP: ITS INFLUENCE ON EMPLOYEE RETENTION IN THE DIGITAL ERA
DOI:
https://doi.org/10.31539/costing.v7i6.14287Keywords:
Emotional Intelligence, Empathy, Stress Management, Job Satisfaction, Employee Retention, LeadershipAbstract
Employee retention is a critical challenge for organizations, particularly in the digital era marked by rapid technological advancements and dynamic workplace environments. This study examines the influence of emotional intelligence in leadership, focusing on empathy and stress management, on employee retention, with job satisfaction serving as an intervening variable. Using a quantitative research design, data were collected from 50 employees of Halodoc in Bandung through a total sampling technique. The analysis, conducted using Structural Equation Modeling (SEM) with SmartPLS, revealed that empathy and stress management have significant direct effects on job satisfaction and employee retention. Moreover, job satisfaction was found to play a pivotal mediating role, amplifying the indirect effects of empathy and stress management on retention outcomes. These findings highlight the importance of fostering emotionally intelligent leadership to enhance job satisfaction and reduce turnover rates. The study contributes to the theoretical understanding of emotional intelligence in leadership while offering practical insights for organizations to strengthen their retention strategies in the digital era. Future research is encouraged to explore these relationships in remote and hybrid work contexts.
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Wong, C.-S., & Law, K. S. (2017). The effects of leader and follower emotional intelligence on performance and attitude: An exploratory study. The Leadership Quarterly, 13(3), 243–274. https://doi.org/10.1016/S1048-9843(02)00099-1
Zhang, Y., Wang, H., & Sun, Y. (2022). The role of job satisfaction in enhancing employee retention: A leadership perspective. International Journal of Productivity and Performance Management, 71(4), 789–807. https://doi.org/10.1108/IJPPM-04-2020-0151
Big Think. (2024, November). Daniel Goleman: Why emotional intelligence may be the number one indicator of organizational success. Retrieved from https://bigthink.com/plus/daniel-goleman-why-emotional-intelligence-may-be-the-number-one-indicator-of-organizational-success/
Brunetto, Y., Shacklock, K., Teo, S. T., & Farr-Wharton, R. (2021). Emotional intelligence, job satisfaction, and organizational commitment: Comparing public and private sector employees. Journal of Organizational Effectiveness: People and Performance, 8(1), 1–18. https://doi.org/10.1108/JOEPP-08-2020-0054
Carleton, E. L., Barling, J., & Trivisonno, M. (2016). Leaders’ trait mindfulness and transformational leadership: The mediating roles of leaders’ positive affect and leadership self-efficacy. Mindfulness, 7(2), 474–485. https://doi.org/10.1007/s12671-015-0451-9
Carmeli, A., Yitzhak-Halevy, M., & Weisberg, J. (2013). The relationship between emotional intelligence and work attitudes, behavior, and outcomes: An examination among senior managers. Journal of Managerial Psychology, 28(3), 231–249. https://doi.org/10.1108/02683941311321149
CBIZ. (n.d.). Emotional Intelligence: The Secret Weapon for Effective Leadership & Employee Retention. Retrieved from https://www.cbiz.com/insights/articles/article-details/emotional-intelligence-the-secret-weapon-for-effective-leadership-employee-retention
Chawla, D., & Lenka, U. (2022). Digital era challenges in employee retention: The role of emotional intelligence. Human Resource Management Journal, 32(1), 25–40. https://doi.org/10.1111/1748-8583.12411
Côté, S. (2014). Emotional intelligence in organizations. Annual Review of Organizational Psychology and Organizational Behavior, 1(1), 459–488. https://doi.org/10.1146/annurev-orgpsych-031413-091233
Enterprisers Project. (2020, February 17). Digital transformation: How emotionally intelligent leaders aid success. Retrieved from https://enterprisersproject.com/article/2020/2/digital-transformation-emotionally-intelligence
Fernandez, C. S., et al. (2021). Stress management and leadership effectiveness in organizations. Leadership Quarterly, 32(2), 234–250. https://doi.org/10.1016/j.leaqua.2020.101502
Forbes Human Resources Council. (2020, September 30). Why Emotional Intelligence Is Vital For Remote Workers. Forbes. Retrieved from https://www.forbes.com/councils/forbeshumanresourcescouncil/2020/09/30/why-emotional-intelligence-is-vital-for-remote-workers/
Forbes Human Resources Council. (2023, July 11). Emotionally Intelligent Leadership and Employee Retention. Forbes. Retrieved from https://www.forbes.com/councils/forbeshumanresourcescouncil/2023/07/11/emotionally-intelligent-leadership-and-employee-retention/
Goleman, D., Boyatzis, R., & McKee, A. (2013). Primal leadership: Unleashing the power of emotional intelligence. Harvard Business Review Press.
Harms, P. D., Credé, M., Tynan, M., Leon, M., & Jeung, W. (2021). Managing stress in workplace leadership. Journal of Organizational Behavior, 42(4), 365–378. https://doi.org/10.1002/job.2495
Herzberg, F. (1968). One more time: How do you motivate employees? Harvard Business Review, 46(1), 53–62.
Huang, J., Teo, T. S. H., & Fletcher, C. (2022). Emotional intelligence and work engagement: The moderating role of digital work demands. Human Resource Management Journal, 32(1), 142–162. https://doi.org/10.1111/1748-8583.12345
IEEE. (2023). Impact of Emotional Intelligence and Artificial Intelligence on Employee Retention. Retrieved from https://ieeexplore.ieee.org/document/10113017
Judge, T. A., Weiss, H. M., Kammeyer-Mueller, J. D., & Hulin, C. L. (2017). Job attitudes, job satisfaction, and job affect: A century of continuity and of change. Journal of Applied Psychology, 102(3), 356–374. https://doi.org/10.1037/apl0000181
Kafetzopoulos, D., Gotzamani, K., & Koufopoulos, D. (2020). The mediating role of job satisfaction in leadership styles and employee outcomes. European Management Journal, 38(5), 742–750. https://doi.org/10.1016/j.emj.2020.01.002
Korn Ferry. (n.d.). The Behind-the-Scenes Impact of Emotional Intelligence. Retrieved from https://www.kornferry.com/insights/this-week-in-leadership/emotional-intelligence-employee-retention-leadership-style
Köse, A., & Öztürk, A. (2022). Digital transformation and employee retention: New challenges for leaders. Journal of Digital Transformation, 6(1), 33–50. https://doi.org/10.1080/25741292.2022.1215368
Li, Z., Yang, C., Yang, Z., & Zhao, Y. (2024). The impact of middle managers’ digital leadership on employee work engagement. Frontiers in Psychology, 15. https://doi.org/10.3389/fpsyg.2024.1368442
Mehta, S., & Bhardwaj, A. (2021). Empathy in leadership and its impact on employee well-being. International Journal of Business Research, 24(3), 101–120. https://doi.org/10.18374/ijbr-21-3.7
Miao, C., Humphrey, R. H., & Qian, S. (2020). The influence of leader emotional intelligence on team outcomes: A meta-analysis. Leadership & Organization Development Journal, 41(6), 789–806. https://doi.org/10.1108/LODJ-06-2019-0268
Nguyen, N., Taylor, J., & Bradley, L. (2020). Employee retention in digital workplaces. International Journal of Human Resource Management, 31(12), 1583–1602. https://doi.org/10.1080/09585192.2019.1579237
Oruh, E. S., et al. (2021). Turnover and retention in the digital age: The leadership challenge. Journal of Organizational Development, 38(3), 455–475. https://doi.org/10.1108/JMD-12-2019-0505
Qiao, G., Li, Y., & Hong, A. (2024). The Strategic Role of Digital Transformation: Leveraging Digital Leadership to Enhance Employee Performance and Organizational Commitment in the Digital Era. Systems, 12(11), 457. https://doi.org/10.3390/systems12110457
Rasheed, M. A., Lodhi, R. N., & Khan, A. (2021). Reducing employee turnover through emotional intelligence. Journal of Applied Psychology, 106(3), 456–469. https://doi.org/10.1037/apl0000767
Schaufeli, W. B., & Taris, T. W. (2014). A critical review of the Job Demands-Resources model: Implications for improving work and health. In Bridging Occupational, Organizational, and Public Health, 43–68. https://doi.org/10.1007/978-94-007-5640-3_4
Science of Mind. (2024, November). The Power of Emotional Intelligence in Leadership. Retrieved from https://scienceofmind.org/leadership-and-emotional-intelligence/
Van der Voet, J., Kuipers, B. S., & Groeneveld, S. (2016). Implementing change in public organizations: The relationship between leadership and affective commitment to change in a public sector context. Public Management Review, 18(6), 842–865. https://doi.org/10.1080/14719037.2015.1045020
Wong, C.-S., & Law, K. S. (2017). The effects of leader and follower emotional intelligence on performance and attitude: An exploratory study. The Leadership Quarterly, 13(3), 243–274. https://doi.org/10.1016/S1048-9843(02)00099-1
Zhang, Y., Wang, H., & Sun, Y. (2022). The role of job satisfaction in enhancing employee retention: A leadership perspective. International Journal of Productivity and Performance Management, 71(4), 789–807. https://doi.org/10.1108/IJPPM-04-2020-0151
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2024-12-31
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