Investigating Job Satisfaction as a Mediator in the Relationship Between Digital Transformational Leadership and Employee Retention in Public Sector Organizations

Document Type

Article

Publication Date

Winter 1-2025

Abstract

This study explores the relationship between Digital Transformational Leadership (DTL) and Employee Retention (ER), while also investigating the role of Job Satisfaction (JS) as a mediating factor in this relationship. Much disruption and change have resulted from political unrest, economic uncertainty, and digital development. Therefore, change management continues to be a major concern for HR directors and is currently a popular trend in the industry related to policy implementation in the public sector organizations in Egypt. Employees are becoming less agile to adapt to change and administrative efficiency is at stake. Prioritizing employee job satisfaction to align with the latest theories related to Behavioral Economics where employees’ decision making aligns with both policy implementation of digital transformation in leadership strategies and employee retention enhances the originality of the research. The study's technique methodology is convergent mixed methods. The sample included employees from 10 companies that produced military products in Egypt (following the Military Production Ministry) made up the sample, in addition, 200 HR managers and staff members working with technology in the chosen companies were the focus of this study. Regression analysis, correlation, and the structural equation module are statistical analytical tools that apply SPSS. This study demonstrated that the relationship between Digital Transformational Leadership and Employee Retention is mediated by Job Satisfaction. Moreover, it endeavors to develop and validate a framework that underscores the significance of Job Satisfaction (JS) in enhancing employee performance within the context of Digital Transformational Leadership (DTL) and Employee Retention (ER) in the workplace.

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January 2025, Volume 4, Issue 1

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