Role of Digital Leadership in Enhancing Engagement, Productivity, and Retention: A Post-Pandemic Analysis

Abstract

The rapid acceleration of remote and hybrid work models has underscored the critical importance of digital leadership (DL) in shaping workforce outcomes. This study investigates the influence of digital leadership on employee engagement, productivity, and retention intention in digitally enabled workplaces. Using data from 3,421 employees across various industries and firm sizes, we applied structural equation modeling (SEM) to evaluate both direct and mediated relationships among the constructs. The results reveal that digital leadership exerts a significant positive impact on all three outcomes, with employee engagement serving as a key mediator between digital leadership and both productivity and retention. Additional robustness checks using PLS-SEM and subgroup analysis confirm the stability of these relationships, particularly under varying ICT infrastructure conditions. The model exhibited excellent fit (CFI = 0.967; RMSEA = 0.041), and all hypothesized paths were statistically significant (p < 0.001). Policy implications suggest that investing in leadership development and digital infrastructure is essential for sustaining workforce performance in the evolving digital economy. Organizations are advised to integrate digital leadership competencies into talent management strategies while prioritizing tools and practices that foster engagement. Future research should extend this analysis through longitudinal and cross-cultural lenses to capture temporal and contextual variation.