The relationship between trust-in-leadership and intention to quit: the case of a South African financial institution

• Main Author: Henriques, Jenine Elizabeth
• Other Authors: Goodman, Suki
• Format: Dissertation
• Language: English
• Published: University of Cape Town 2015
• Subjects: People Management; Organisational Psychology; Employee turnover
• Online Access: http://hdl.handle.net/11427/15536

Includes bibliographical references === Orientation: Employee turnover (ET) has become one of the central challenges faced by organisations today. Managers of local organisations should be asking themselves the following pivotal question: Why are skilled and top-performing employees leaving organisations? Research purpose: The purpose of this paper is to gain a better understanding and to examine the relationship of trust- in -leadership (TIL) and intention to quit (ITQ) and the effects on ET within a financial institution in South Africa. Motivation for the study: Cost of ET is not the only negative impact for an organisation, the loss of human capital (human intellect) in terms of knowledge, skills and experience also effects the organisation negatively. Managers need to understand how they can decrease their ET and retain their talented and skilled employees. Prior to leaving an organisation staff have an intention to quit (ITQ) and managers are encouraged to focus on preventative measures by identifying the antecedents of ITQ. Research design: A quantitative research approach was used to determine the extent of the relationship between TIL and ITQ among staff, where a cross-sectional field survey generated the primary research data for this study. An online survey consisting of 19 questions was e- mailed to all 400 employees within a financial institution within South Africa staff. Main Findings: Study results showed a significant negative relationship between TIL and ITQ. Practical and/or managerial limitations/implications: This paper highlights the importance of considering the relationship of TIL on ITQ, directed at employees to become proactive with retention strategies in order to reduce ET. TIL is a variable that is often overlooked in ITS and it is crucial for understand. The implications of ET, as a consequence of ITQ, can affect the bottom line of an organisation. It thus becomes critical for managers to find means to limit the loss of employees. Contribution and/or value-add: In the South African context, only a few recent studies has been found in this field. Notwithstanding, this study differs from previous research in this area in that it was conducted in the financial service sector in South Africa with a specific focus on TIL and ITQ.