The Impact of Transformational Leadership on Generation Z Employee Retention and Innovative Behaviour: A Case of Malaysian Hotel Industry

The current research aims to investigate the influence of transformational leadership on generation Z employee retention and innovative behaviour in star class hotels in Malaysia. Employee retention has become a concern for hospitality leaders and hotels in Malaysia, as the negative perception in the hospitality industry has caused job-hopping and a high turnover rate, which has threatened the growth and the stability of the Malaysian hotel industry. The research applied quantitative approach and collected responses from 178 employees who were currently working in the hotel industry in Malaysia. The data is analyzed using SPSS software, and Pearson s Correlation coefficients are used to examine the relationship between leadership factors that affect Gen Z employee retention and innovative behaviour in star class hotels in Malaysia. The results found that all al the dimensions of transformational leadership including Idealized influences, Inspirational motivation, Intellectual stimulation and Individualized considerations significantly influence employee turnover intention and their innovative behaviour. Present study provides understanding for effective leadership and the importance of managers in the hotel industry to better influence and motivate employees to improve retention and enhance innovative behaviour. The study also provides implication and insight for future researchers that wish to conduct studies within these parameters.