Transformational Leadership and Employee Engagement

Abstract

This study focuses on how Transformational Leadership affects Employee Engagement among 512 people who took part in a survey in service and knowledge-based sectors. We used SEM and OLS regression and discovered that Transformational Leadership is strongly linked with Employee Engagement (β ≈ 0.42, p < .001), just as the general correlation between leaders and follower engagement previously shown in 86 studies found (r ≈ 0.47). Furthermore, psychological empowerment came up as a key influence, agreeing with Fareed et al.’s (2023) view of empowerment as what connects TFL to good project outcomes. Even though voice and safety matters for employees enhanced how much TFL has achieved, belief in a just world and psychological ownership were important factors in both this study and those conducted in organizations.
As evidence, new research from hospitality by Afsar et al. (2022) and from pharmaceuticals by Emerald (2024) says that employee engagement links TFL with commitment and retention, and increases both affective organizational commitment and job performance Because the current global cost of disengagement is very high (close to US $8.8 trillion), these findings remind us why it is essential for organizations to focus on TFL. Some practical ways are to build leadership development programs for the “four I’s,” add empowerment routines, and create a fair workplace that supports psychological safety so that TFL truly helps achieve better organizational results.