Track: Business Management

Abstract

The Indonesian banking industry had the highest voluntary turnover rate in 2019. This might indicate a low level of employee loyalty in the Indonesian banking industry. Therefore, it was urgent for this research to investigate and explore the impact of leadership styles on employee loyalty and turnover intention in a bank in Indonesia. This research was conducted using a qualitative research method and the data were collected by conducting in-depth semi-structured interviews. Twelve employees and one senior human resource manager working at PT Bank XYZ were interviewed. Then thematic data analysis was used to analyze the data. The interview results indicated that leadership style had a strong impact on employee loyalty and turnover intention at PT Bank XYZ. Transformational and democratic leadership styles are the most suitable leadership styles to enhance employee loyalty and reduce turnover intentions of employees at PT Bank XYZ. Moreover, the interview results showed that there were eight main factors that were equally important that affected employee loyalty and turnover intention of PT Bank XYZ’s employees, such as: work-life balance, passion for job, salaries, bonus and benefits, relationship with leader, relationships with team members, leader’s appreciation and respect, career path, and personal developments. It can be concluded that leadership style was the most crucial factor that influenced employee loyalty and turnover intention. Meanwhile, transformational, and democratic leadership styles were the most suitable leadership styles to enhance employee loyalty and to reduce the turnover intention of PT Bank XYZ’s employees.