Relationship of leadership style and employee turnover in SMEs / Muhammad Ariff Abdul Rashid

The purpose of this study is to identify the factors influencing employee turnover and how gender moderate’s the relationship between the independent variables (transformational leadership and transactional leadership). The research was conducted on 240 of employee in SMEs, Selangor. The transformational leadership and transactional leadership were the most popular leadership style in current literature reviews which produce good result. SMEs were chosen as a place for research method due to the huge impact in human capital development especially in Selangor. The findings showed a negative significant relationship between leadership style (transformational) and employee turnover. This specifically indicated weak correlation between transformational leadership (idealized influence and individual consideration) and employee turnover. Moreover, the relationship between leadership style (transformational leadership and transactional leadership) and employee turnover were not moderated by gender.