Role of Effective in Leadership on Employee Retention: An Empirical Study

Retaining employees in organisations requires effective leadership. Employees are driven to stick with the organisation when executives perform their jobs to a high standard. Effective leadership must include both communication and clear guidance. When leaders provide clear expectations and objectives, staff members are more aware of their obligations, which reduces ambiguity and builds trust. As a result, there is a higher chance that workers will stay in their jobs and experience more job satisfaction. Effective leaders also thank and honour their team members for their contributions. It increases morale and enhances the emotional bond between workers and the company to recognise employees' efforts and offer the right incentives. This ultimately improves employee loyalty and lowers turnover. Effective managers place a high priority on their team members' personal and professional development by providing them with chances to advance their careers. Leaders show a dedication to their team members' success by supporting their professional development, which raises employee engagement and retention levels.


Introduction
The "role of effective leadership" in staff retention, according to Anitha (2016), is a crucial component of organisational success in India. The connection between "organisational culture," "employee commitment," and retention was the main subject. The "organisational culture" that encourages employee engagement and loyalty is greatly influenced by effective leaders. It was showed that a good "organisational culture," marked by "open communication," "trust," and a "supportive work environment," had a considerable impact on employee commitment. Employees feel a sense of belonging and are more inclined to stay with the PSYCHOLOGY AND EDUCATION (2018) 55(1): 537-544 ISSN: 1553-6939 538 www.psychologyandeducation.net company when executives effectively convey the organisation's beliefs and aims. Effective leadership also fosters an atmosphere where staff members see "fairness" and "transparency" in decision-making processes, further strengthening their loyalty to the company. It emphasised the significance of leaders in establishing an environment conducive to staff retention, which in turn has a big impact on those rates. Gill et al. (2010) explored the link between "transformational leadership," "employee empowerment," and work satisfaction among staff members of Indian restaurants. Employee job satisfaction has been proven to benefit from "transformational leadership," which is distinguished by bosses that inspire and drive their workforce. Effective managers display characteristics like "inspirational motivation," "intellectual stimulation," "individualised consideration," and "idealised influence," which help to increase employee job satisfaction.Additionally, it increases their sense of "ownership" and "autonomy" when managers empower their staff by giving them control and including them in decision-making processes. Employees feel valued and respected at work as a result of this empowerment. As a result, it increases levels of job satisfaction and eventually enhances staff retention.
The focus of James and Mathew (2012) was on employee "retention strategies" unique to the Indian IT sector. They emphasised how important leadership is to keeping workers in this industry. Effective IT sector executives adopt a variety of tactics to encourage staff retention.
Offering "growth opportunities" to employees is a crucial tactic. Effective IT sector executives prioritise staff development by providing training programmes, skill-enhancement workshops, and opportunities for career promotion. Leaders develop their knowledge and abilities through supporting the growth of their teams, and they also show a dedication to their success by doing so. Employee retention is increased because of the sense of loyalty and dedication this instils in them. Effective leaders also recognise the value of "benefits" and "competitive compensation" in keeping workers. They make sure that workers are adequately compensated for their services by offering competitive wage packages, bonuses, and all-inclusive benefit programmes. In addition to inspiring workers to do their best efforts, this fosters a sense of worth and gratitude for their labour. Another essential component of good leadership in regard to employee retention is the creation of a "positive work environment." IT sector leaders work to promote a culture of cooperation, open communication, and respect. They encourage a welcoming workplace culture where workers feel free to communicate their ideas, worries, and PSYCHOLOGY AND EDUCATION (2018) Doh et al. (2012) noted the need for responsible leadership in maintaining talent in India. They emphasised how employing responsible leadership techniques has a big impact on keeping employees. Responsible leaders act morally upright and in a socially conscious manner, displaying concern for the welfare of their subordinates and the larger community. Such leaders place a high value on justice, openness, and honesty in their decision-making procedures, encouraging trust and loyalty among their workforces. Responsible leadership is essential for keeping talent in India, where social responsibility is highly regarded. Employees feel more connected to the company and are more inclined to stick around when they believe their leaders are responsible. By encouraging employee wellbeing, work-life balance, and chances for both personal and professional growth, responsible leaders foster a healthy work environment.

Literature Review
Furthermore, improving employee retention rates, they practise open communication and include staff in decision-making.
According to Mehta et al. (2014) "Employee retention and commitment" highlighted the varied nature of employee retention, stressing the significance of good leadership in promoting commitment and lowering turnover. Indian leaders who are effective put these methods into practise to increase staff loyalty and retention. Employee retention is highly impacted by leaders who exhibit "transformational leadership" traits. Leaders that are transformational inspire and motivate their teams, offer guidance and support, and advance a common goal.
Higher retention rates are the result of this leadership approach, which improves worker job satisfaction, engagement, and loyalty. In addition, they emphasised the part played by leadership in forging a positive "organisational culture." Through their actions, beliefs, and communication, leaders influence the culture. Leaders help to increase employee happiness and retention by promoting a culture of trust, cooperation, and employee development. The commitment and retention of employees are adversely impacted by toxic leadership practices including micromanagement and a lack of support. Kashyap and Rangnekar (2016) assessed the link between turnover intentions, employer brand perception, and servant leadership. They said that employee turnover intentions in India are PSYCHOLOGY AND EDUCATION (2018)  greatly influenced by servant leadership, which is characterised by leaders who put their people' needs and growth first. By exhibiting integrity, empathy, and a commitment to staff development, servant leaders create positive opinions of their company brand. Employee trust in leaders is subsequently increased as a result of this. Effective leadership and employee retention are correlated, and trust is a key mediator in this relationship.
The impact of cultural variables on managerial interaction in the Indian insurance industry was studied by Raina and Roebuck in 2016. The link between managerial communication, work happiness, organisational loyalty, and employees' inclination to leave was their main concern.
Given the cultural setting, they emphasised the need of effective communication in fostering employee retention in the Indian insurance business. Employee job satisfaction and dedication are significantly impacted by effective "managerial communication" practises that are compatible with Indian cultural values and preferences. Better understanding and engagement can be fostered by managers who modify their communication style to fit the cultural norms and expectations of their workforce. Aruna and Anitha (2015) observed several generations that followed employees' retention facilitators. They found that maintaining this demography required excellent leadership, particularly strong communication skills. Stronger relationships can be built and employees' job satisfaction and loyalty to the company can be increased by managers who effectively communicate with them and understand their specific qualities and preferences. Additionally, Chandani et al. (2016) assessed employee engagement and highlighted organisational elements that affect employee engagement. Employee engagement has been linked to "effective communication" as a key component.When managers interact with their staff members in an open, transparent, and effective manner, it promotes trust, collaboration, and a sense of belonging, which raises employee engagement levels and lowers turnover intentions.The focus of Sandhya and Kumar (2011) was on the significance of "motivation" in preserving a loyal workforce. They emphasised the significance of strong leadership in energising workers and decreasing turnover rates. Leaders that are aware of their team members' unique needs and goals can foster a productive workplace."Employee retention" depends heavily on motivation.
Higher levels of "job satisfaction" and "organisational commitment" are a result of effective leadership that can inspire workers through rewards, rewards, and possibilities for progress. PSYCHOLOGY AND EDUCATION (2018)  Leaders can promote a sense of purpose and engagement among their workforce by matching their ambitions with the organisation's objectives. Guchait and Cho (2010) assessed how "human resource management practices" affected employees' intentions to exit India's service sector. They underlined the importance of strong leadership and the mediating role of "organisational commitment" in putting these practices into practise.Leaders can lessen employees' intentions to quit by using HR strategies that encourage "organisational commitment." Leaders strengthen employees' loyalty to the company through implementing employee development plans, performance reviews, and friendly work conditions. Leaders may decrease the probability of employees leaving by fostering a sense of belonging and loyalty through good communication and support. Elci et al. (2012) explored ethical leadership and leadership effectiveness in connection to employees' "intentions to leave," with "work-related stress" acting as a mediating factor. They emphasised the role ethical behaviour and stress management have in good leadership's ability to lower turnover.Leaders who practise "ethical behaviour" place a high value on justice, integrity, and transparency, fostering a work atmosphere that builds trust and lowers turnover intentions. Employees gain trust and confidence in the organisation when leaders behave as moral role models, which increases loyalty and lowers turnover.Additionally, managing "workrelated stress" depends greatly on competent leadership. Employee stress can be reduced by managers who offer assistance, resources, and a focus on work-life balance. Leaders help to increase "job satisfaction and retention" by lowering workplace stress.

Objectives of the study:
To measure the role of effective in leadership on employee retention

Research Methodology:
This research is based on collecting data from 213 people to review the role of effective in leadership on employee retention. The study used an empirical approach to analyze the data, which involved using frequency distribution to examine the patterns and trends in the responses. PSYCHOLOGY AND EDUCATION (2018) Table 3 presents that with the statement when employees see that their leaders are invested in their professional growth, they are more likely to stay with the organization and contribute their PSYCHOLOGY AND EDUCATION (2018)

Conclusion
In India, the value of strong leadership in retaining workers cannot be overstated. Effective leaders considerably lower turnover rates in organisations by having a tremendous impact on the engagement, contentment, and loyalty of their workforce. Employee retention in India is important. It is generally accepted that inadequate leadership is more to blame for employees leaving their employment than they are with the organisation. A healthy work environment that promotes dedication and loyalty can be created by skilled leaders who are aware of their employees' needs and objectives. Communication is a crucial component of effective leadership. Building trust and providing clarity about organisational objectives, expectations, and performance reviews are two things that leaders who communicate with their staff openly and honestly can do.Employees feel appreciated and connected when there are frequent and meaningful communication channels between them, which boosts job satisfaction and lowers turnover.Effective leaders also establish clear standards, give direction, and acknowledge both individual and team accomplishments in order to inspire and motivate their teams. By providing chances for skill growth and progress, they establish a culture that encourages both personal and professional development. Long-term retention of staff members is higher when they feel challenged and encouraged by the company. In India, it is impossible to stress the importance of strong leadership in ensuring employee retention. To foster a culture where employees feel appreciated and engaged, skilled leaders that place a high priority on PSYCHOLOGY AND EDUCATION (2018)  communication, motivation, growth, and well-being are necessary. Organisations may lower turnover rates, keep brilliant workers on staff, and ultimately achieve long-term success by investing in good leadership practices.