Staying Power: The Effect of Inclusive Leadership, Psychological Safety, and Job Embeddedness on the Intent to Search and the Intent to Turnover

Abstract: Large-scale adverse events such as natural disasters and pandemics interrupt business services, initiating defining moments for organizations (Guzzo et al., 2021). As of early September 2022, the COVID-19 pandemic has infected over 606 million people worldwide, with more than 6.5 million related deaths (Johns Hopkins University [JHU], 2022), initiating many workplace changes (Guzzo et al., 2021). Since the onset of the pandemic, retirements have increased (Fry, 2021) and a growing number of non-retirement eligible people are leaving the workforce, referred to as the Great Resignation (Gittleman, 2022). The trend of people leaving the workforce compels organizations to determine turnover risk and to search for factors that mitigate the impact of resignations (Cook, 2021).
The trauma associated with a pandemic shatters the perception of psychological safety in the workplace and introduces psychological distress (Ahmed et al., 2020). When traumatic events occur and employees no longer feel safe in the workplace, people and organizations turn to leaders for guidance (Dirani et al., 2020). Studies show inclusive leadership that expresses, by word and deed, the value subordinates bring to the organization positively impacts the intent to stay employed, thereby reducing the potential for voluntary turnover (Eberly et al., 2017; Elsaied, 2020). The need for leaders to provide a safe environment during and after a traumatic event elevates to a top priority for employees (Dirani et al., 2020).
Voluntary turnover rates have increased over the past decade (Fry, 2020), affecting the ability to retain competent staff (Burnett, 2016; Mission Square Research Institute [SLGE], 2021). In the absence of a properly staffed and competent workforce, the effectiveness of the organization deteriorates (Dess & Shaw, 2001; Steindórsdóttir et al., 2020), and negatively affects organizational performance (Guzzo et al., 2021; Newman et al., 2014). The presence of an inclusive leader who demonstrates openness to employees experiencing anxiety during a crisis reduces stress among employees, and the “leader’s attitude and behaviors tend to be contagious” (Ahmed et al., 2020, p. 10).
Consequently, retention is critical for organizations (Khalid et al., 2021). As work cultures shift, new ways of working emerge in the COVID-19 pandemic environment (Kuknor & Bhattacharya, 2021). Organizations that do not embrace this new environment run the risk of collapsing, and it is necessary to find ways to ensure improved outcomes for organizations in times of crisis (Kuknor & Bhattacharya, 2021).
Leaders who promote inclusion among subordinates interact in ways that promote a sense of belongingness and esteem for the unique value of individuals and reduces psychological distress (Ahmed et al., 2020; Randel et al., 2018). Twenty years of research establishes job embeddedness as a force that causes “stickiness” to a job through fit, or connections, links to others, and a feeling of sacrifice at the thought of leaving (Steindórsdóttir et al., 2020). Researchers identify the importance of a motivational climate at work that contributes to the perception that employees have “a better fit to the organization, have stronger links to others, and have more to sacrifice if leaving” (Steindórsdóttir et al., 2020, p. 2), which can lead to greater job embeddedness. Mobley (1977) introduces a multistage model of voluntary turnover where dissatisfaction leads to voluntary turnover, with an intent to search for another job preceding the intent to turnover (Crossley et al., 2007).
The purpose of this study is to determine the relationship between inclusive leadership, psychological safety, and job embeddedness on the intent to search and the intent to turnover. The basis of inclusive leadership involves leader behaviors toward subordinates and outcomes that follow the behaviors of openness, accessibility, and availability (Carmeli et al., 2010; Randel et al., 2018). Psychological safety refers to a workplace climate in which employees perceive safety in expressing their thoughts and ideas (Carmeli et al., 2010; Edmondson, 2004; Hunt et al., 2021). Job embeddedness focuses on the aspects of a job that contribute to the employee feeling a bond with the employer, which, in turn, makes the employee more likely to remain employed (Felps et al., 2009; Kiazad et al., 2015; Mitchell et al., 2001). Using multivariate analysis of variance (MANOVA) statistical analysis, this correlational study examines two dependent variables, the intent to search and the intent to turnover, to reflect the influence of the other constructs, which lead to an employee's decision to leave a job voluntarily (Hom et al., 2017). This study’s results may offer guidance to organizations and human resource professionals seeking insight into retaining employees.
Keywords: inclusive leadership, psychological safety, job embeddedness