Introduction Voluntary employee turnover

Voluntary employee turnover creates an ongoing challenge for managers due to a

continuous need to focus on recruitment and training (Ellingson et al., 2016). The residual

effects of voluntary employee turnover range from a loss of knowledge to reduced

operational effectiveness (Reina et al., 2018). Big-box retail managers must aggressively

monitor and control turnover trends because it directly affects the profitability of their

organization (Mekraz & Gundala, 2016). To reduce voluntary employee turnover in their

retail environment, managers must identify and deploy strategies that promote employee

retention (Nica, 2016).

Background of the Problem

A significant problem influencing some business leaders is voluntary employee

turnover (Moon, 2017). When employees leave voluntarily, companies experience costly

staff replacements, gaps in process knowledge, and reduced team morale (Katsikea et al.,

2015). Big-box retail managers might experience challenges with voluntary employee

turnover when team members believe their organization is more focused on prestige and

profit than taking care of their staff (Newman & Kane, 2014). Big-box retail leaders must

address this perception by mitigating organizational concerns to achieve profitability and

retain their employees (Kundu & Lata, 2017). Managers might use research from this

study to gain strategies to reduce organizational conflicts and positively affect operational

performance.

Employees reveal that poor communication, conflict with leadership style, and

unclear vision are the top reasons they lose loyalty to their organization (Coetzer et al.,

2019). When employees become disloyal, their commitment level reduces, triggering

voluntary employee turnover (Coetzer et al., 2019). Business leaders are responsible for

resolving disengagement issues that lead to employee turnover and should actively seek

solutions to improve their organization (George, 2015). Concepts from theories such as

transformational leadership might strengthen employee commitment and retention (Bass,

1985). Big-box retail managers need additional research to understand how to improve

profits by reducing voluntary employee turnover.

Problem Statement

Each year, more than 33 million employees in the United States voluntarily quit

their jobs (U.S. Bureau of Labor Statistics, 2020). The estimated cost associated with

replacing knowledge and performance lost when an employee voluntarily leaves is 90%

to 200% of an employee’s annual salary (Stamolampros et al., 2019). The general

business problem was some businesses experience a loss of profitability when employees

leave the organization. The specific business problem was that some big-box retail

managers lack strategies for reducing voluntary employee turnover.

Purpose Statement

The purpose of this qualitative multiple case study was to explore strategies

bigbox retail managers use to reduce voluntary employee turnover. The target population

consisted of 14 big-box retail managers from big-box retailers located in San Antonio,

Texas, who had reduced voluntary employee turnover. I interviewed 14 big-box retail

managers employed in a total of 11 retailers in San Antonio, Texas, who had successfully

implemented strategies for reducing voluntary employee turnover for at least 1 year.

These managers shared their successful reduction in employee turnover strategies through

open-ended interview sessions. The implications for positive social change include the

potential to help big-box retail managers acquire additional strategies to reduce voluntary

employee turnover costs. Reducing voluntary employee turnover within big-box retail

organizations might increase gainful employment, thus improving living standards and

financial stability for residents in the community.

Nature of the Study

The three research methods used by researchers are qualitative, quantitative, and

mixed methods (Venkatesh et al., 2016). Researchers use qualitative methods to explore

the why, what, or how of a phenomenon (Denzin & Lincoln, 2011). In contrast,

quantitative researchers use numerical data to test hypotheses to examine a specific

research question (Park & Park, 2016). Researchers use mixed methods to combine both

qualitative and quantitative elements to understand a phenomenon (Venkatesh et al.,

2016). For this study, I did not test hypotheses or use numerical data; therefore,

quantitative and mixed methods were not appropriate. I explored what strategies big-box

retail managers could use to reduce voluntary employee turnover. Consequently, a

qualitative method was appropriate for this study.

I considered four research designs for a qualitative study on reducing voluntary

employee turnover: phenomenological, ethnographic, narrative, and case study. Business

researchers use phenomenology to explore lived experiences within one unique

phenomenon (Moustakas, 1994). A phenomenological design was not appropriate as my

study did not focus on the lived experiences of participants. Researchers use ethnographic

designs to explore a specific culture's patterns and interactions (Venkatesh et al., 2016).

Ethnography was not suitable because the nature of my exploration did not require

cultural patterns and interactions. The narrative design includes temporal sequencing,

characters, and plots to deliver a lesson or moral (Bruce et al., 2016). The narrative

design did not support my study because I did not focus on temporal sequencing and

story development. Business researchers use the case study design to explore a real-time,

contemporary issue in a bounded environment (Yin, 2017). I selected the case study

design to explore the contemporary issue of voluntary employee turnover within the

bounded environment of big-box retail.

Research Question

This study's central research question is: What strategies do some big-box retail

managers use to reduce voluntary employee turnover?

Interview Questions

1. What retail managerial strategies do you use to motivate your employees to stay

on your team?

2. What strategy did you find worked best to minimize voluntary employee

turnover?

3. Describe what strategies you use to inspire employee buy-in to the company’s

mission and its influence on employee retention.

4. Describe what strategies you use to stimulate employee creativity and its

influence on employee retention rates.

5. How do you foster commitment from employees who become misaligned with

your organization’s mission?

6. What additional information regarding retail managerial leadership strategies and

voluntary employee turnover would you like to share?

Conceptual Framework

Burns (1978) developed the transformational leadership theory, which was

expanded by Bass in 1985. Bass (1985) used transformational leadership theory to

emphasize the influence leaders can have on increasing employees' organizational

commitment and performance by using these fundamental concepts: idealized influence,

inspirational motivation, intellectual stimulation, and individualized consideration.

Building upon Burn’s theory, Bass (1990) solidified transformational leadership theory as

an ideal practice to effectively engage and empower employees through influential

leader-follower relationships. Sun and Wang (2017) posited that engaged employees had

increased trust in their managers and lower turnover intentions. Tenets from

transformational leadership theory relate to this study as transformational leadership

theory can offer helpful strategies to strengthen the manager-employee relationship and

promote employee satisfaction.

Leaders use transformational leadership theory to build strong organizational

awareness and commitment to a unified mission. Managers align employees to the

company mission and vision by helping them move beyond self-interest to act on behalf

of the company’s best interests (Bass, 1990). Employees who experience strong

leaderfollower relationships have enhanced commitment to their organization and

increased self-value through goal achievement, reducing turnover ratios (Joseph, 2016).

Bass (1985) enriched the transformational leadership theory to support employees'

advancement and organizational goals through vision, influence, and total team

contribution. Transformational leadership theory can provide a lens for exploring the

strategies big-box retail managers use to reduce voluntary employee turnover.

Operational Definitions

A clear definition of the unique terms presented in this study from professional

and scholarly sources is essential to understanding this topic. The following operational

definitions will foster mutual understanding and prevent misinterpretation of terms for the

reader:

Big-box retailer: A big-box retailer refers to a large-scale corporate retail chain

that measures 50,000 square feet or more (Johnson & née Lybecker, 2018). Alternately

known as a super or megastore, big-box retail stores sell general merchandise items such

as grocery, household goods, electronics, or clothing at wholesale prices to create a

convenient shopping experience (Newman & Kane, 2014).

Idealized influence: Idealized influence refers to a leader’s ability to apply

emotional influence using charisma, ethical leadership, and trust to gain regard from

his/her employees (Langat et al., 2019).

Organizational citizenship behavior: Organizational citizenship behavior (OCB)

refers to voluntary behavior and commitment an employee exhibits that go beyond their

self-interest (Gupta et al., 2017).

Turnover intentions: Turnover intentions refer to an employee’s thoughts and

plans to leave their job (Fazio et al., 2017). The act of searching for a new employment

opportunity also relates to turnover intentions.

Voluntary employee turnover: Voluntary employee turnover refers to an

employee’s decision to leave their employer (Lee et al., 2017).

Assumptions, Limitations, and Delimitations

Qualitative researchers must understand and document the assumptions,

limitations, and delimitations found within their research to promote credibility and

rationale for interpretation (Theofanidis & Fountouki, 2018). Failure to address these

elements properly could affect the reader’s belief in the evidence provided (Pietrzak &

Roman, 2018). The section below outlines the assumptions, limitations, and delimitations

selected for this study.

Assumptions

Assumptions are facts, beliefs, or expectations that researchers consider to be true

despite their validity or ability to prove them (Nkwake & Morrow, 2016). Three

assumptions existed for this study. The first assumption was that all participants will

answer questions honestly. The second assumption was that participants will understand

the significance of this study and desire to contribute to the exploration of reducing

voluntary employee turnover. A final assumption was that the interview questions may

result in the responses necessary to uncover strategies for reducing voluntary employee

turnover in big-box retail organizations.

Limitations

Limitations are potential weaknesses within a study that a researcher cannot

control (Theofanidis & Fountouki, 2018). Three limitations were in this study. The first

limitation was time restraints to conduct data collection. The second limitation was

expecting the findings of this case study to be transferable to other retail industry cases.

Yin (2017) noted the detriment of considering case studies for statistical data, as they are

not representative sampling units and may vary in sample size. A final limitation was the

possibility of not reaching data saturation during interviews. To overcome this limitation,

I continued interviews until I met data saturation.

Delimitations

Delimitations are bounds that define and help determine the scope of a study (Yin,

2017). The focus of my study was to explore the strategies some big-box retail managers

use to reduce voluntary employee turnover. One delimitation was that only managers

from big-box retailers will participate in this study. Another delimitation was that

participants would represent big-box retail stores in the San Antonio, Texas, metropolitan

area who met my study’s sampling criteria. By effectively enforcing these bounds, this

study produced relevant research within the scope of voluntary employee turnover that

may improve future business leaders' practices.

Significance of the Study

In this section, I describe how the study is a value to businesses and, may

contribute to the effective practice of business and may contribute to positive social

change. Results from this study might help big-box retail managers gain an understanding

of the factors that influence voluntary employee turnover, thus improving employee

retention. As such, better big-box leadership strategies could enhance the bottom-line of

companies, encouraging investment opportunities in their local communities.

Value to Businesses

Voluntary employee turnover affects the bottom line of every business. The

staggering costs to recruit and train new employees to fill vacant positions reduces the

funds available to advance and maintain top talent (Sandhya & Sulphey, 2020). This

study may be valuable to businesses because it offers insight managers can use to retain

their employees. Managers who understand strategies that boost their employees'

organizational commitment behaviors can maintain productive and collaborative

environments that curb turnover intentions (Islam et al., 2016).

Contribution to Business Practice

Business leaders are responsible for maximizing profitability within their

organizations (Mekraz & Gundala, 2016). Reducing voluntary employee turnover can

help maintain a sustainable business by contributing to its profitability (Coetzer et al.,

2019). This study is significant to business practice because it might provide a practical

model for better understanding the strategies big-box retail managers can use to reduce

voluntary employee turnover. Leadership strategies can increase retention and mitigate

costs, thereby improving profitability.

Implications for Social Change

Leadership can influence employee behaviors and motivations necessary for

building sustainable and profitable environments (Kundu & Lata, 2017). Implications for

social change include higher employee retention that might financially stimulate the local

community. A decrease in voluntary employee turnover might increase an organization's

financial and relational health (Kundu & Lata, 2017). Vibrancy from reduced voluntary

employee turnover might also affect the community's social fabric by developing

employment opportunities and enhancing the economic livelihood of surrounding

residents.

A Review of the Professional and Academic Literature

This study's professional goal was to establish an understanding of how to reduce

employee turnover within the big-box retail sector and other business industries. For this

literature review, credible and peer-reviewed articles came from ABI/Inform Complete,

Academic Search Complete, Business Source Complete, Google Scholar, ProQuest

Central, SAGE Journals, and Science Direct. Keywords used to identify these articles

were big-box retail organizations, employee turnover, voluntary employee turnover,

employee turnover, employee retention strategies, employee turnover in retail,

leadermember exchange theory, leadership and retail management, leadership and

employee turnover, servant leadership, transformational leadership theory, transactional

leadership, and turnover intentions.

I used Ulrich’s Global Series Directory to verify the peer review of each source.

This study consisted of 251 references, of which 220 are peer-reviewed, 14 are books,

two are from corporate websites, and three are from government websites. Articles,

books, corporate, and government websites were selected because of their relevance to

the topic of reducing voluntary employee turnover.

Table 1

Frequency of Study Sources

Sources Within 5 years Older than 5 years Total

Peer-reviewed journal

articles

159 61 220

Non-peer reviewed journal

articles

Government websites

Corporate websites 2 0 2

Books 5 9 14

Total sources 174 77 251

I organized this literature review by using specific sections to develop a relevant

and comprehensive analysis of my study topic. The first section of this review explores

the constructs of the conceptual framework for this study, transformational leadership

theory, research using this theory, and how supporting and contrasting theories compare

to it. The second section introduces the origin and evolution of big-box retail and its

impression on the retail industry. The third section consists of literature on employee

turnover, specifically focusing on the influence of voluntary turnover on big-box retail

organizations.

The fourth and final section provides synthesis and discussion on the importance

of employee retention and the effects of voluntary employee turnover on profitability. The

focus of this literature review was to enhance the research on the topics of employee

turnover and transformational leadership by exploring strategies managers can use to

reduce voluntary employee turnover in big-box retail. The research uncovered in this

literature review is valuable to the contribution of this focus in big-box retail, as it largely

remains unaddressed.

Transformational Leadership Theory

Transformational leadership is a well-respected theory within the business

industry. Business leaders have historically used the concepts of Burns’ (1978)

transformational leadership theory to improve productivity within their organizations.

Later advanced by Bass (1985), transformational leadership has become one of the

highest regarded leadership theories in the world and a preferred approach amongst

business managers to accomplish company goals (Bass, 1990; Gupta et al., 2017; Wang et

al., 2017). Burns (1978) developed transformational leadership to define the influence

leaders have on teams through organizational change using clear vision and attention to

employee needs. Researchers use transformational leadership theory to explore ways

leaders can inspire employees to extend their organizational commitment through

fairness, unconditional regard, and valuing each employee's special contributions to the

organization (Phaneuf et al., 2016).

To effectively employ transformational leadership, researchers must apply the four

tenets of transformational leadership to tap into the full potential of the leaderfollower

relationship that emerges during this type of leadership. Leaders can use the concepts of

idealized influence, inspirational motivation, intellectual stimulation, and individualized

consideration to drive organizations in any phenomenon to operate with a higher level of

engagement (Burns, 1978; Giddens, 2018; Paladan, 2015).

Transformational leadership is a comprehensive model that supports the strengthening of

the leader-follower relationship in businesses while reducing turnover and improving

retention (Gyensare et al., 2016). Transformational leadership is extensive in international

literature, rich in empirical evidence, and presents a critical lens to assess ways leaders

can foster optimum employee performance through trust and role clarity (Paladan, 2015).

Leaders who leverage transformational leadership behaviors recognize positive

change on their employees and their organization. This leadership method also challenges

followers to share a joint vision with their leader to articulate and carry forth

organizational goals (Pohler & Schmidt, 2015). Researchers globally endorse

transformational leadership theory to facilitate effective change in business environments

(Khan & Khan, 2019; Paladan, 2015). Transformational leadership theories can provide a

framework for business leaders to navigate challenges with organizational commitment,

turnover and retention, and overall satisfaction (Salem, 2015).

Transformational leaders motivate their employees by leading by example,

inspiring positive behaviors, and exhibiting selfless conduct. Research has found that

transformational leadership behaviors spark empowerment, drive loyalty to the

organization, and promote creative and progressive results (Martin, 2015).

Transformational leaders foster organizational commitment and focus by encouraging

behaviors that inspire team members to contribute to a shared vision by lending their

strengths and talents to create sustainable change (Martin, 2015). Gumusluoglu et al.

(2017) indicated employees who have a leader-follower relationship where they feel their

unique skills are considered by leadership feel valued, better utilized, and trusted, thus

maintaining a stronger organizational commitment and maximizing their potential (Burns,

1978). As a result of the tenants defined in the subsequent paragraphs, the

transformational leadership theory has become a preeminent model across multiple

industries, including retail management (Giddens, 2018).

Idealized Influence

Idealized influence refers to the admirable and charismatic qualities leaders may

use to influence followers. Transformational leaders consistently exhibit idealized

influence to cultivate loyalty and devotion within their organizations (Sahu et al., 2018).

By exhibiting charismatic behaviors, leaders can drive a clear and shared vision amongst

team members that promotes a common voice and commitment to excellence (Phaneuf et

al., 2016). Burns (1978) emphasized that leaders who demonstrated idealized influence

displayed behaviors that inspired employees to replicate their approach. When employees

emulate their leader's dedicated behaviors, organizational productivity and performance

increases (Sahu et al., 2018).

Idealized influence behaviors have a strong effect on the organizational

commitment of employees. Leaders who foster this attribute can influence employee

engagement and organizational commitment, ultimately contributing to job satisfaction

and reduced employee turnover (Jain & Duggal, 2016; Siew, 2017). Influential leaders

garner aspiration and respect from their employees by using their charisma to positively

lead their team (Phaneuf et al., 2016). Koveshnikov and Ehrnrooth (2018) found that

leaders who embraced this role affected their employees’ ability to develop a stronger

self-concept and personal identification within the organization, all of which supported

retention.

Employees admire leaders who display honest and consistent behaviors.

Transformational leaders who set a high standard are often associated with being ethical,

trustworthy, and well respected amongst their followers (Yasir & Mohamad, 2016).

Idealized influence behaviors represent this foundational principle of ethics, inspiring

their employees to drive the organization's results through their excellent example (Linge

& Sikalieh, 2019). The desire to uphold the company's mission, vision, and values speak

to the organizational commitment promoted by idealized influence (Gyensare et al.,

2016; Linge & Sikalieh, 2019).

Charismatic business leaders inspire their employees to elevate their performance

personally and professionally. Researchers have linked idealized influence and other

transformational leadership behaviors to the personal growth and development of their

employees, all of which have contributed to improved performance and job satisfaction

(Gyensare et al., 2016; Koveshnikov & Ehrnrooth, 2018). Through inspiring,

empowering, and developing employees, organizations can also experience increased

employee engagement and reduced turnover intentions (Mittal, 2016; Park et al., 2017;

Sandhya & Sulphey, 2020).

Inspirational Motivation

Leaders who use inspirational motivation behaviors better connect their

employees to the mission of the organization. Jiang et al. (2018) and Zineldin (2017)

defined inspirational motivation as a leader’s ability to establish employee structure and

alignment toward accomplishing an organization's goals. Transformational leaders inspire

their employees to execute their organization's vision through passion and encouragement

to raise the bar beyond their limitations (Bass, 1985). Inspirational leaders use optimism

to articulate high expectations and focus areas by influencing their employees to develop

an emotional connection to their work (Zineldin, 2017). Managers can use

transformational leadership behaviors to create a catalyst for trust, teamwork, and

commitment, promoting a culture that inspires employees to remain within their

organization (Eliophotou-Menon & Ioannou, 2016).

Businesses rely on operational and financial success, especially during times of

uncertainty. Researchers found that behaviors connected to inspirational motivation can

strengthen operational practices during times of chaos (Alkhawlani et al., 2019; Devi &

Mahajans, 2019). Inspirational leaders can confidently show their employees how to

pivot in times of turmoil by demonstrating the behaviors of positive reinforcement,

active-listening, encouragement, and mentorship (Paladan, 2015; Schuesslbauer et al.,

2018). Leaders who offer this support cultivate trusting and affirming relationships with

their employees that, in turn, strengthen organizational commitment and job satisfaction

(Gyensare et al., 2016; Mittal, 2016). The research affirms inspirational motivation is

instrumental in curbing turnover intentions and other employee challenges (Cheng et al.,

2016; Pasha et al., 2017).

Inspirational motivation may improve the health of employees with an

organization. Zineldin (2017) found that inspirational leaders positively influence

employee job satisfaction, enthusiasm, organizational pride, and happiness, thus

improving their team members' mental well-being and retention. Further, Sun and Wang

(2017) found transformational leadership behaviors reduce turnover intentions because of

the connection developed between employees, the work environment, and their

inspirational leader's emotional influence. When inspirational motivation behaviors

prompt employees to internalize their organization’s vision, they become personally

invested, contributing to the reduction of employee turnover (Gilbert et al., 2016).

Intellectual Stimulation

Transformational leaders can encourage organizational progress by stimulating the

creative energy of their employees. Leaders who use intellectual stimulation behaviors

empower their employees to use innovation to develop solutions to business problems

(Martin, 2015; Yin et al., 2019). Employees encouraged to challenge the status quo

through educated risk-taking develop a stronger commitment to improving the

organization (Pasha et al., 2017; Yin et al., 2019). Researchers found that when business

leaders allow their team members the autonomy to complete their workload creatively, it

enhances the professional competency and job satisfaction of their employees (Ali &

Chin-Hong, 2017; Pasha et al., 2017; Tongchaiprasit & Ariyabuddhiphongs, 2016).

Increased satisfaction can ultimately strengthen organizational commitment and reduce

employees' turnover intentions (Tongchaiprasit & Ariyabuddhiphongs, 2016).

Transformational leaders use intellectual stimulation to motivate their employees

to increase the effectiveness of their organization. Leaders rely on intellectual stimulation

to encourage employees to solve problems or contribute to their organization's

progression, thus stimulating commitment, effort, and productivity within their team

(Mittal, 2016; Sahu et al., 2018). Researchers found that stimulated employees had lower

intentions to leave when their leader promoted collaborative approaches toward

accomplishing the company’s vision (Sun & Wang, 2017). Paladan (2015) also suggested

that leaders who use transformational leadership to foster employee input saw improved

engagement and reduced voluntary turnover from employees feeling valued. Mathieu and

Babiak (2016) highlighted the notion that intellectual stimulation increases employee

purpose and morale increases, influencing employee satisfaction, and commitment to

their organization.

Individualized Consideration

Employees thrive in environments where they feel understood and regarded.

Leaders who leverage individualized consideration experience more operational success

because of higher follower commitment within their organization (Paladan, 2015;

Phaneuf et al., 2016). Employees' personal needs are better reflected through

individualized consideration, clearing the supervisory mentorship path that helps the team

maximize strengths and refine their weaknesses (K’Aol et al., 2016; Paladan, 2015).

According to a study conducted by Phaneuf et al. (2016), employees deemed their leader

effective and the environment more supportive when they felt understood, appreciated,

and cared for by their supervisor. Managers who lead with care and interest in their

subordinates maximize their employees' potential and skillset (Burns, 1978).

Leaders who consider the individual needs of their employees create enthusiasm

and forward movement within their organization. Andersen et al. (2018) emphasized the

significance of transformational leadership theory on influencing excitement within

employee competence and a commitment to the mission and vision of an organization. In

their study, the researchers found that a leader’s focus on the individualized consideration

of their employees ignited an enhanced passion and enthusiasm for the work they do. The

excitement in turn promoted professional development and confidence in their employees

(Andersen et al., 2018). When leaders foster autonomy that sparks individual proficiency,

employees demonstrate more loyalty and commitment, thus reducing their plans to leave

the organization (Gyensare et al., 2016; Pohler & Schmidt, 2015).

Transformational leadership promotes organizational citizenship behaviors that

benefit the organization and the employee. Leaders who exhibit individual consideration

have teams who are motivated, appreciate striving for results, understand their purpose,

and enjoy their work environment (Andersen et al., 2018). The factors above are essential

for curbing voluntary employee turnover within an organization (Siew, 2017).

Transformational Leadership Research

Transformational leadership theory continues to be a consistent practice in

business literature. Managers who exhibit transformational leadership behaviors

experience increased environmental success and commitment (Mathieu & Babiak, 2016.).

The following section includes examples of research that uses transformational leadership

theory to support using this established theory.

To maintain a competitive advantage, businesses must evolve by inspiring

innovative solutions to their customer’s needs. Research conducted by Ranjbar et al.

(2019) found transformational leadership to be a fundamental theory for creating an

environment that inspires employees to meet organizational goals creatively. In a study

conducted with 365 medical employees, the researchers found that leaders who

demonstrated high behavioral levels of idealized influence, inspirational motivation,

intellectual stimulation, and individualized consideration created a more stimulating work

environment (Ranjbar et al., 2019). Employees felt empowered to take risks and

experienced increased satisfaction from their ability to take on additional responsibility

(Ranjbar et al., 2019).

Researchers continue to show the positive effect transformational leadership has

on employee job satisfaction and attitudes toward turnover intentions. In a study of 324

service industry employees conducted by Ohunakin et al. (2019), transformational

leadership positively influenced the leader-follower relationship. Employees

demonstrated a heightened performance on assigned tasks from their leader displaying

behaviors that celebrated their unique skillset (Ohunakin et al., 2019). The research

supported the powerful effects of transformational leadership behaviors that can promote

a workplace of high performance, engagement, team morale, and mentorship, all of which

reduce turnover intentions (Ohunakin et al., 2019).

Supporting and Contrasting Leadership Theories

Business researchers use a vast number of leadership theories to explore concepts

such as voluntary employee turnover. To expand my understanding beyond the

transformational leadership theory, I conducted a thorough review of common leadership

theories to understand employee turnover within my phenomenon better. The information

provided details that support and oppose the leadership theory selected for this study.

Theories reviewed were the servant leadership theory, the transactional leadership theory,

and the leader-member exchange theory.

Supporting Leadership Theories

A theory supportive of the attributes of transformational leadership theory is the

servant leadership theory. Greenleaf (1977) coined the concept of servant leadership to

emphasize the role leaders should adopt to meet the needs of those they serve first.

Leaders who display this theory place their commitment to service above any title and

self-gain (Greenleaf, 1977). Servant leaders project their desire and motivation to uplift

and promote others; they are not motivated by personal benefits and accolades

(Greenleaf, 1977). Business leaders use servant leadership behaviors to develop their

team members' skills and abilities, much like transformational leadership.

Servant leadership places value primarily on growing employees within an

organization. Servant leaders choose to put their employees above organizational results

by displaying strong vision, honesty, trust, service, appreciation of others, and

empowerment (Eva et al., 2019). A leader’s ability to demonstrate care and concern for

their employees' personal and professional development creates a culture of appreciation

and progress within the organization (Lapointe & Vandenberghe, 2018). Coetzer et al.

(2017) found these value-based behaviors to improve employee performance, interactions

with supervisors, and, ultimately, the organization (Kermond et al., 2015).

Extended research of Greenleaf’s (1977) servant leadership theory defines seven

key dimensions that servant leaders use to exercise care and service with their employees.

Servant leaders successfully allow space for emotional healing by showing sensitivity for

employee concerns and creating value for the community through genuine altruistic acts.

Servant leaders also demonstrate conceptual skills about the organization that help their

employees perform, encourage problem-solving and workload prioritization, and help

employees grow and succeed within their career. Lastly, leaders who adopt servant

leadership behaviors put their employees first by using clear and supporting language that

puts their work first and use ethical behaviors to foster openness, fairness, and honesty

(Lapointe & Vandenberghe, 2018; Liden et al., 2015). The rich focus on prioritizing

employee needs creates a standard for leaders to aspire to if they are committed to being

champions for their employees (Lapointe & Vandenberghe, 2018). Servant leadership

behaviors can positively influence employee behaviors, enhance emotional attachment to

the organization, and strengthen organizational commitment (Lapointe & Vandenberghe,

2018). The dimensions of servant leadership have a similarity to intellectual stimulation

and individualized consideration. The focus on employee needs and empowered

contributions promote the leadership support desired to influence employees to stay

within their organization (Bass, 1985; Burns, 1978; Coetzer et al., 2017).

Despite similarities within theory components, servant leadership does have some

contrasts from transformational leadership. Servant leadership focuses heavily on

employees' psychological needs being its primary goal, while transformational leadership

places this need second to meeting organizational objectives (Eva et al., 2019). Leaders

use transformational leadership to drive organizational results by using follower

commitment, while servant leaders place service and unconditional regard of their

employees above results (Eva et al., 2019). Although researchers have shown numerous

organizational benefits from using servant leadership, Liao et al. (2021) found the

frequent use of servant leadership behaviors can deplete the energy and effectiveness of

leaders with minimal experience with perspective-taking.

The effectiveness of a leadership style relies on the execution of the leader

employing the approach. Leaders with the inability to understand and manage various

perspectives may digress to exhibiting laissez-faire behaviors, diminishing servant

leadership's effectiveness on employee loyalty to reduce turnover intentions (Liao et al.,

2021). Servant leadership behaviors may differ from the consistently positive effect of

transformational leadership behavior on constructs, such as turnover intention, loyalty,

and team climate (Cheng et al., 2016).

Another supporting theory of transformational leadership is the leader-member

exchange (LMX) theory. LMX gives a quintessential lens for examining the relationship

dynamics that can emerge between leaders and their subordinates (Martin et al., 2016).

Known originally as the Vertical Dyad Linkage Model, LMX supports the notion that

relationships can vary between leaders and their employees because of the exchanges and

interactions between them (Dansereau et al., 1975; Graen & Uhl-Bien, 1995). Over time

researchers found LMX to offer essential concepts for developing relationships that foster

productivity, retention, engagement, and satisfaction within organizations (Hwang et al.,

2016; Martin et al., 2016). Like transformational leadership, leaders who use LMX

benefit from understanding and supporting the individual needs and contributions of their

employees (Terpstra-Tong et al., 2020).

Leaders who use LMX can strengthen their organizations through collaboration

and team development. Research conducted by Terpstra-Tong et al. (2020) found LMX to

enhance trust between employees and leaders, ultimately increasing knowledge and

resource sharing, team synergy, and organizational performance. Hwang et al. (2016)

emphasized that practicing LMX leadership behaviors can contribute to high-quality

interactions, improved job organizational citizenship behavior, and better management of

change within the organization. The positive effects of LMX also include better task

performance and the potential to embrace innovation, a similar concept found within

transformational leadership (Atitumpong, & Badir, 2018; Hwang et al., 2016).

Employees experience active learning when they can contribute to the

organization with creative outcomes. Creativity enhances engagement and intrinsic

motivation among employees (Atitumpong, & Badir, 2018). Leaders and team members

who experience high LMX relationships have more autonomy, empowerment,

participative decision-making, and discretion, similar to the effects of transformational

leadership (Atitumpong, & Badir, 2018). LMX varies slightly from transformational

leadership as it is contingent on the employee having affirmative perceptions about their

leader’s behaviors (Little et al., 2016). Leaders who fail to demonstrate reciprocal

influence may have low LMX exchanges that can influence their employees' performance

and turnover intentions (Hwang et al., 2016; Little et al., 2016).

Contrasting Leadership Theory

A well-known contrasting theory in comparison to transformational leadership is

the transactional leadership theory. Transactional leadership leverages exchanges,

expectations, and rewards to motivate employee performance, which presents a stark

contrast from encouraging performance through aligned values and individual interests

with transformational leadership behaviors (Bass, 1990). Transactional leaders use

contingent rewards to motivate employees to meet organizational objectives and maintain

optimum employee performance (Cho et al., 2019). Researchers exploring transactional

leadership found transactional leaders foster more stable and predictable work

environments because of the enforcement and refinement of institutional knowledge

(Baškarada et al., 2017; Hussain et al., 2017). Transactional leaders preserve established

organizations by modeling active and passive management-by-exception behaviors to

correct actions when employees have not met their expectations (Cho et al., 2019).

Leaders use transactional leadership to drive for success by focusing on

performance outcomes. The adaption of transactional behaviors can better equip leaders

with overcoming operational challenges and effectiveness with their employees (Ahmad

et al., 2015; Mathieu et al., 2016). Unlike transactional leadership theory that focuses on

reward in exchange for results, transformational leadership promotes a deeper connection

to organizational purpose and vision from a collaborative approach that inspires purpose

(Paladan, 2015). The selection of leadership methods ultimately depends on the style the

leader finds most effective for their employee dynamic.

Transformational leaders influence employees to engage in innovation and

positive organizational change. Conversely, transactional leaders strive to reduce

employee turnover by using external rewards such as increased compensation (Ahmad et

al., 2015; Cho et al., 2019). Researchers suggested that the most influential leaders utilize

transactional and transformational leadership behaviors (Afsar et al., 2017; Baškarada et

al., 2017). Obeidat and Tarhini (2016) found transactional leaders successfully improve

employee job performance when they give rewards for accomplishing specific goals,

which ultimately improved the knowledge shared within the organization and reduced

turnover. Notably, employees who thrive in inspiring, supportive environments that

promote belongingness do not respond well to transactional leadership's direct drives for

results (Cho et al., 2019).

The emphasis leaders place on task completion can radically affect employee

relationships. Transactional leadership can yield many foundational benefits for an

organization, but the potential for employee dissatisfaction and amplified stress from a

constant drive for task completion could increase turnover intentions (Maaitah, 2018). An

intense focus on performance excellence can create strains within the leader-follower

relationship, resulting in employee turnover (Hwang et al., 2016).

Big-Box Retail

Big-box retail chains must balance multiple priorities to maintain their

competitive edge. Big-box retail organizations achieve success by effectively managing

inventory levels, floor schematics, operating policies and procedures, and store

performance metrics to yield profitable results (Hise et al., 1983; Mekraz & Gundala,

2016). Managers must also determine the factors that positively influence store

performance while also mitigating personnel issues, customer expectations, and the

everchanging retail environment (Mekraz & Gundala, 2016). Big-box retail has

dramatically changed the United States economy and local communities in numerous

ways, both good and bad (Richman & Simpson, 2016; Stainback & Ekl, 2017). In the

next section, I uncover the important components of superstores for business leader

consideration by discussing the origin of big-box retail, its evolution, and the impression

it has had on the retail industry.

Origin and Evolution

Big-box retail has dramatically influenced the United States shopping experience.

Since the 1960s, big-box retail stores have expanded across communities in the United

States (Richman & Simpson, 2016; Stainback & Ekl, 2017). Before World War II,

customers relied on general stores or mom and pop shops to serve individual

communities (Richman & Simpson, 2016). Retail pioneers such as Walmart, Target, Toys

R Us, K-Mart, Price Club, and Home Depot were essential to laying the foundation and

format of big-box retailing well before this terminology was adapted (Sampson, 2008).

Other organizations have now forged into the mega retail space, creating diversity within

the big-box retail approach that includes the following categories: general merchandise

retailers such as Target, grocery or food retailers such as Kroger and

Safeway, home improvement retailers such as Home Depot and Lowe’s, drug retailers

such as CVS and Walgreens, home electronics retailers such as Best Buy, and retail office

retailers such as Office Depot and Staples (Stainback & Ekl, 2017). These stores

represent most of the top Fortune 500 companies in the United States and are also

examples of highly regarded organizations within the community that provide a

costeffective, one-stop-shop experience for their customers (Sciara et al., 2018; Stainback

Ekl, 2017).

Big-box retail revolutionized the consumer shopping experience. The United

States Census Bureau (2017) defines retail stores as merchandise selling entities that

operate fixed point-of-sale locations in high volume areas while using elaborate displays

and marketing strategies to attract consumers. Big-box or megastores can range from

50,000 to over 150,000 square feet, depending on the product category (Johnson & née

Lybecker, 2018; Jones & Doucet, 2000). These stores offer a single-story shopping

experience within a large footprint with strong illumination, heating, cooling, and

ventilation (Han et al., 2018; Richman & Simpson, 2016). The thoughtful layout and

product variety of big-box retailers address consumer demand to purchase merchandise in

a one-stop-shop environment conveniently (Han et al., 2018; Johnson & née Lybecker,

2018; Sampson, 2008). Stores such as Walmart and Target represent a super retailer’s

ability to execute this one-stop format successfully and supersede the competition to

become a prominent leader in the business community (Han et al., 2018; Jones & Doucet,

2000; Richman & Simpson, 2016).

Retailers like Walmart continue to refine the essence of one-stop shopping. Since

opening its first store in 1962, Walmart has become a dominant player in the big-box

retail industry (Seenivasan & Talukdar, 2016). With more than 1.5 million employees and

11,500 stores and clubs nationwide, this retail giant has transformed the way we operate

within our communities (Walmart, 2020). Researchers coined the term The Walmart

Effect to describe the corporation's economic power on consumer behavior and its local

competitors (Paruchuri et al., 2009; Seenivasan & Talukdar, 2016). Stores like Walmart

and Target have survived the changing economic market and thrived through the

expansion of supercenters and grocery options (Ahn, 2019; Rice et al., 2016). Through

expanding its footprint by more than 50% between 1962 and 1990, Target has disrupted

the industry by delivering cost-savings on high-quality items, innovation, and intentional

customer service (Alghalith, 2018; Target, 2020).

Influence on the Retail Industry

Customers nationwide enjoy living near super retail stores. In the United States,

more than 75% of Americans live within 10 miles of a Target, while 90% live within

proximity to Walmart (Jantzen et al., 2009; Target, 2020). The increased accessibility of

big-box retail organizations has drastically shifted the United States' economic structure

and sparked concern around social and financial inequality (Stainback & Ekl, 2017).

Research conducted by Stone (1988) to examine the effect of big-box retailers on mom

and pop stores found Walmart negatively affected local establishments. Stone (1995) also

found emerging local businesses that sold complementary products near the big-box

retailer experienced some financial gain, proving local businesses that establish near a

big-box retailer may benefit residually because of proximity (Stainback & Ekl, 2017).

Researchers found that big-box retail store arrival helped establish new businesses and

reduce store closings compared to neighboring towns without new big-box retailers

(Hicks, 2009; Hicks et al., 2012; Paruchuri et al., 2009).

Research regarding big-box retail traditionally reflects the challenges created in

the local retail community. Some researchers offered that the benefits of rapid product

consumption are important (Freedman et al., 2016; Hicks, 2009; Hicks et al., 2012). The

heightened demand for a product can increase revenue for the local community

(Freedman et al., 2016). The one-stop-shopping concept of big-box retail stores

specifically improves the consumer's experience. They reduce the number of multiple

shopping trips, and the distance traveled to obtain their necessary goods (Sciara et al.,

2018). Consumers could also retain more disposable funds to spend at local businesses

from obtaining the items they need from less expensive big-box stores (Freedman et al.,

2016; Håkansson et al., 2019).

Big-box retailers must use their influence to address the needs of their employees,

support their customers, and invest in their communities. Researchers found that retailers

committed to corporate social responsibility improve their company's perception amongst

their customers and strengthen brand loyalty (Bolton & Mattila, 2015; Richman &

Simpson, 2016; Simões & Sebastiani, 2017). Walmart is a big-box retailer securitized for

creating job opportunities within the community, but not providing sufficient hourly

wages for their employees (Basker, 2005; Hicks & Wilburn, 2007; Stainback & Ekl,

2017). The focus on improving employee conditions contributes to super retailers

understanding the positive relationship between labor productivity and increasing wages

for devoted and consistently productive employees (Rudholm et al., 2018). Entry big-box

retailers must recognize inequalities they may create within the community when

employees acquire their positions due to displacement; hours provided, wages, and

benefits need to align to support economic growth (Sciara et al., 2018).

Employee Turnover

Employee turnover is a long-standing issue for business researchers and

practitioners because of its direct influence on gaining and maintaining a competitive

advantage (Hom et al., 2017; Mekraz & Gundala, 2016). Early studies about employee

turnover found supervisor leadership styles, environment constraints, pay, and the

inability to advance to be some of the reasons employees leave their organization

(Diemer, 1917; Douglas, 1918; Fisher, 1917). The continued focus on this topic remains

consistent with previous findings while also adding factors such as poor hiring practices,

ineffective onboarding, and job satisfaction to contribute to employee turnover (Heavey

et al., 2013; Rubenstein et al., 2015). This section will extend the discussion on employee

turnover literature and review the effects of voluntary turnover in big-box retail.

Multiple variables affect employee turnover intentions, thus making it a challenging

element to reduce. Turnover intention is the final cognitive decision-making process of

voluntary turnover (Fazio et al., 2017). Kim et al. (2017) emphasized that employees who

withdraw cognitively from their organization have thoughts of quitting the job, intent on

searching for a new one, and ultimately intention to leave their organization. High

performing employees who voluntarily leave their employer create detriments to the

operational excellence of their organization. Researchers have found employees seek

better opportunities for their skillset when their current position no longer creates

satisfaction (Becton et al., 2017; Kamarulzaman et al., 2015; Zhang & Li, 2020). To

ensure their organizations' productivity and profitability, business leaders must identify

and control antecedents that cause employee turnover (Zhang & Li, 2020).

Effects of Voluntary Turnover in Big-Box Retail

Retail store managers face a multitude of challenges in their quest to operate

successful businesses. One challenge continues to be the need to manage high employee

turnover rates (Mekraz & Gundala, 2016). The cost of personnel is the second most

important factor to control for big-box retail stores (Mekraz & Gundala, 2016).

Broadbridge (1999) attributed the high turnover rate in retail to the nature of the business.

Abrupt changes to meet customer demand and repetitious workload could attribute to

tangible stressors retail employees face, influencing their desire to leave their

organization (Mekraz & Gundala, 2016). Negative effects of voluntary turnover on

bigbox retail are costly and can include declined organization performance because of the

loss of knowledge, skills, and abilities, disruptions in operational practices, and

undesirable replacement costs that decrease financial gains (Heavey et al., 2013; Sciara et

al., 2018).

Employee turnover has tremendous effects on the operational success of an

organization. Several researchers have reinforced the detriment of employee turnover

may lead to decreased employee morale, reduced productivity, and poor customer

transactions (Hom et al., 2017; Kamarulzaman et al., 2015). Voluntary turnover has

serious effects on team dynamics within big-box retail stores. Shepherd et al. (2020)

found an increase in voluntary turnover when customers perceived employees to provide

a low quality of service. Voluntary turnover diminishes team interactions and increases

the workload of remaining team members, making it challenging for employees to

effectively respond to customers' needs (Argote et al., 2018).

To better understand how to curb voluntary employee turnover, big-box retail

managers must understand the terminology and the factors that contribute to it. Voluntary

turnover occurs when employees choose to independently leave an organization (Purba &

Fawzi, 2019; Wang et al., 2017). This form of turnover is challenging for big-box retailers

because of the significant loss in profit, knowledge, and skills that occur when employees

leave (Becton et al., 2017; Dhanpat et al., 2018). Beyond the expensive and damaging

effects of voluntary turnover, big-box retail managers must acknowledge that employees

are essential for organizational survival (Kim et al., 2017).

Big-box retail is vastly affected by voluntary employee turnover. The retail

industry hires more than 15 million employees annually yet experiences one of the

highest turnover rates amongst business industries (U.S. Bureau of Labor Statistics,

2020). Turnover rates in the retail industry have fluctuated between 34.7% and 100%

since the mid-2000s, with turnover rates exceeding 50% each year after 2013 (Olubiyi et

al., 2019). Big-box retail managers must adapt effective retention strategies to improve

their organization (Luthra & Singh, 2019). Kim et al. (2017) found that employees who

have positive organization-employee relationships were less likely to have turnover

intentions. Big-box retail managers who utilize leadership behaviors such as

transformational leadership to strengthen the leader-follower dynamic can potentially

address challenges that lead to turnover before they start (Bass, 1990).

Employee Retention

The retention of employees is a crucial focus for business leaders. Big-box retail

managers must recognize the importance of their human capital to successfully fulfill

their company mission and expand their business presence (Kamarulzaman et al., 2015).

Effective managers must deploy strategies that influence their most talented and valued

employees to stay with their organization (Mandhanya, 2015; Shatila & Alozian, 2019).

Insufficient training, lack of advancement opportunities, and employee disengagement

are factors that impede employee retention (Lee, 2018; Shatila & Alozian, 2019).

Researchers also found that establishing consistent training and development

opportunities for high performing employees could improve organizational commitment

(Kamarulzaman et al., 2015; Mandhanya, 2015; Shatila & Alozian, 2019). In these final

sections, I expand the review of employee retention in the big box-retail industry and

discuss the effects of voluntary turnover on profitability.

Employee exits are costly for organizations. Each year business leaders in the

United States spend more than $11 billion to replace employees who voluntarily leave

their organizations (Khan, 2018). Big-box retail establishments must develop sustainable

retention strategies to reduce the financial implications of employee turnover (Olubiyi et

al., 2019). Lee (2018) found employees had more motivation and job satisfaction when

they felt appreciated and rewarded for their extraordinary contributions. Mandhanya

(2015) supported this finding, emphasizing the benefits managers may experience from

supplementing intentional training with tangible recognition. Big-box retail leaders

should use employee recognition, supervisory support, and consistent feedback as

primary retention strategies to reduce voluntary turnover and increase retention (Khan,

2018; Mandhanya, 2015).

Employee Retention in Big-Box Retail

Big-box retail establishments experience frequent employee turnover for a variety

of reasons. Olubiyi et al. (2019) posited that some organizations experience voluntary

employee turnover because of the person-organizational fit between an employee and the

organization. Employees who have little value congruence with their employers may have

less job satisfaction, reduced outcomes, and diminished performance (Olubiyi et al.,

2019). Big-box retail managers must identify ways to understand their employees,

establish business priorities, and adapt leadership behaviors that contribute to employees'

success (Olubiyi et al., 2019).

Big-box retail leaders should explore ways to remain connected with their

employees. Support and effective communication from managers play an essential role in

promoting employee retention (Kim et al., 2017). Shatila and Alozian (2019) found the

sustainability and advancement of organizational goals relied on effective and fluid

communication. Big-box retail managers may benefit from using transformational

leadership to exhibit clear, supportive, and timely communication to clarify roles and

expectations. Employees who receive clear communication are less confused, reducing

employee turnover (Kamarulzaman et al., 2015). Mekraz and Gundala (2016) reinforced

the value of other transformational leadership behaviors by proving that idealized

influence and inspirational motivation had the most significant effects on retaining

employees. Big-box retail stores who commit to training their leaders to be more

transformational may also improve employee retention and reduce employee turnover

rates (Handayani, 2018; Mekraz & Gundala, 2016).

Voluntary Employee Turnover and Profitability

Successful retail organizations require managers who can effectively balance the

financial obligations of merchandise and personnel. A manager’s inability to retain high

performing employees has adverse effects on the organization's financial performance

(Lee, 2018). In addition to managing employees, retail stores must consistently control

gross margin, contribution margin, and net profit margin (Mekraz & Gundala, 2016).

Voluntary employee turnover is financially damaging to an organization’s bottom line,

and managers should monitor turnover closely to correct undesirable trends (Kim et al.,

2017). Voluntary employee turnover not only increases the cost for staffing, but it also

affects the productivity of teams, which directly affects corporate profit (Heavey et al.,

2013; Shatila & Alozian, 2019; Zhang & Li, 2020).

Costs of Voluntary Turnover

High voluntary employee turnover has significant financial ramifications on an

organization. Direct turnover costs that influence profitability include recruitment,

selection, orientation, and training of new employees (Al Mamun & Hasan, 2017).

Indirect costs that retail stores could face include education and development of staff,

declines in performance, employee stress, and the reduction of positive social interactions

(Al Mamun & Hasan, 2017). The cost of voluntary employee turnover could cripple an

organization’s brand and profitability for months and sometimes even years (Becton et

al., 2017). Big-box retail managers who use behaviors that promote employee motivation

may experience increased employee satisfaction and reduced employee turnover

(Stamolampros et al., 2019).

Transition

Section 1 of this study included information on the background of the business

problem, the problem statement, purpose statement, conceptual framework, and the

nature of the study. Additional components included assumptions, limitations,

delimitations, the significance of the study, and a review of relevant literature pertaining

to my topic. The literature review covered the following: transformational leadership

theory, transformational leadership theory research, and contrasting and supportive

theories such as transactional leadership theory, servant leadership, and leader-member

exchange theory.

The literature review also addressed important themes within employee turnover,

employee retention, and profitability. In Section 2, I will readdress the purpose of this

study and discuss the researcher's role, participant information, and selected research

methods and research design. I will wrap up Section 2 by covering the process for data

collection, data organization, data analysis, and assessment of reliability and validity.

Section 3 will culminate the findings of my study, highlight recommendations for the

practical application of the collected data, and conclude with a reflection on my doctoral

process.

Section 2: The Project

Section 2 includes relevant information about my role as the researcher, the

purpose of this study, and my methods for identifying study participants. This section also

justifies the population of participants involved in this study, the selection of project

methodology and design, and a review of other research methods and design

considerations. Lastly, this section uncovers my steps for conducting ethical research, the

resources I used for data collection, organization and analysis processes, and the controls

I established to guarantee reliability and validity.