In the conceptual framework, the fourth approach through which transformational leadership can impact on talent retention is that transformational leadership‘s positive influence on
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talent retention can be mediated firstly by job satisfaction, and then by organizational commitment of talent. Overall, both statistical findings and qualitative materials in this DBA study support this proposition.
In this approach, the influence of transformational leadership on talent retention can be broken down into three phases – (1) transformational leadership‘s influence on job satisfaction, (2) job satisfaction‘s influence on organizational commitment, and (3) organizational commitment‘s influence on talent retention. The first and the third have been discussed in approach 2 and 3 respectively. Statistical findings and qualitative materials support that transformational leadership has positive causal influence on talent‘s job satisfaction, and organizational commitment has positive causal influence on talent retention. Therefore, this section concentrates on the second phase: job satisfaction‘s influence on organizational commitment.
In sum, statistical findings and qualitative materials support that talent‘s job satisfaction has positive causal influence on their organizational commitment. To be more specific, talent‘s affective and continuance commitment can be enhanced by their satisfaction with regard to learning and development, job itself, and some of the external job factors; but whether their normative commitment can be increased by these factors remains to be further investigated. Further details will be discussed in the section below.
Overall influence of job satisfaction on organizational commitment
Statistically, correlation analysis indicates that talent‘s job satisfaction is moderately and positively correlated with their organizational commitment (r=0.529); structural equation modeling further indicates that talent‘s job satisfaction has positive causal influence on their organizational commitment. This statistical finding is consistent with prevailing literature (e.g. Porter et al., 1974; Reyes and Shin, 1995; Fresko et al., 1997; Currivan, 1999) which supports that job satisfaction is an antecedent of organizational commitment.
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Influence of job satisfaction on organizational commitment by dimension Affective commitment
Correlation analysis and structural equation modeling indicates that talent‘s satisfaction with regard to learning and development opportunities has positive causal influence on their affective commitment to the organization (r=0.525, t=2.572). This is consistent with the results from the interviews. As mentioned previously, providing opportunities for learning and development on a continuous basis has been recognized as a very important measure to keep talent remaining. This is somewhat related to the fast-developing Chinese market, in which many see room for future development as even more important than current position or salary. Talent may have stronger sense of belonging if they believe they can grow up together with the company. For example, R4 expressed strong intention to remain due to the new development opportunity offered by the company:
‘I think I have had good command of experiences and skills required for my current position. The company is going to provide me a brand new opportunity. I'm really looking forward to it.’ (R4)
Correlation analysis and structural equation modeling indicates that talent‘s satisfaction with regard to job itself has positive causal influence on their affective commitment to the organization (r=0.504, t=2.002). As mentioned previously, all participants indicated unanimously that they like their current job, and they can have a strong sense of accomplishment from their current job. They may have stronger sense of belonging therefrom. As Leininger (2004) proposes, talent who saw their work as meaningful and who felt a sense of accomplishment may express higher commitment levels.
Correlation analysis indicates that talent‘s satisfaction with regard to external job factors is moderately and positively correlated with talent‘s affective commitment to the organization (r=0.545), but no significant causal relationship is found from structural equation modeling (t=0.982). However, qualitative materials provided some supports for this causal relationship. Especially, participants indicated that a sound interpersonal relationship may increase talent‘s affective commitment to the company. As mentioned earlier, all participants indicated
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unanimously that they can get along well with their co-workers. In particular, they have very good relationship with the executive-leaders, due to their amiable personality and good communication skill. This is seen as very precious in an immigrant city like Shenzhen, and may thus make them reluctant to leave the company.
‘I like the job, probably because I have been working in the company for years, and I can get along well with my colleagues. I feel everything is fine for now.’ (R9)
Continuance commitment
Correlation analysis indicates that talent‘s satisfaction with regard to learning and development opportunities is weakly and positively correlated with talent‘s continuance commitment to the organization (r=0.287), but no significant causal relationship is found from structural equation modeling (t=1.204). As mentioned before, the majority of participants indicated that they are satisfied with the opportunities for learning and development on their current position. Some even specifically indicated that they like their current job largely because it provides good opportunities for learning and development. This may add the cost of quitting the job, and thus increase talent‘s continuance commitment the company.
Correlation analysis indicates that talent‘s satisfaction with regard to job itself is weakly and positively correlated with talent‘s continuance commitment to the organization (r=0.230), but no significant causal relationship is found from structural equation modeling (t=0.667). As mentioned before, the majority of participants indicated high level of satisfaction with regard to their current job itself. They can handle their job well in most circumstances, since their strength can be put into full play. Hence, they can gain a strong sense of accomplishment from the job. This may add the cost of quitting the job, and thus increase talent‘s continuance commitment to the company.
Correlation analysis indicates that talent‘s satisfaction with regard to external job factors is weakly and positively correlated with talent‘s continuance commitment to the organization (r=0.370), but no significant causal relationship is found from structural equation modeling
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(t=1.103). As mentioned earlier, participants indicated that external factors such as effective leadership, promising future of the company and the industry, reasonable salary, familiar working environment, and effectiveness of team are all critical factors for their decision to remain. These factors may increase talent‘s continuance commitment to the company and make them reluctant to leave.
‘I think the familiar working environment is very important. Besides, the salary here is fair enough. If I change a job, I have to make extra efforts to get accustomed to the new environment. [...] So I don't have any plan to quit the job for now.’ (R9)
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