Linking Leadership and Retention: Emotional Exhaustion and Creativity as Mechanisms in the Information Technology Sector

Abstract

Employee turnover remains a critical challenge for organizations, prompting an examination of how leadership approaches influence employees’ intentions to leave. This study investigates the impact of transformational leadership on turnover intention, focusing on emotional exhaustion and creativity as potential mediators. The study employs a quantitative design grounded in leadership and organizational psychology theory and surveys 182 professionals working in the information technology sector across Bosnia and Herzegovina, Croatia, Serbia, and Montenegro. Structural equation modeling reveals that transformational leadership reduces turnover intention by alleviating emotional exhaustion, highlighting the importance of psychological well-being in employee retention. While transformational leadership enhances employee creativity, creativity did not significantly mediate turnover intention in this context. These findings suggest that strategies that foster engagement and reduce burnout in knowledge-intensive industries can strengthen organizational commitment and improve retention. This study contributes to the understanding of behavioral mechanisms linking leadership to employee outcomes and offers actionable insights for modern organizations aiming to address turnover through supportive, empowering leadership practices. Additional mediators and contextual variables should be explored in further research.