Transformational Leadership and Employee Engagement
Akrobou Yapi Roxane., Md Sagor Hossain., Rahman Mostafizur
Business Management, Nanjing University of Information Science and Technology, Nanjing, Jiangsu,
China, People's Republic of
DOI: https://dx.doi.org/10.47772/IJRISS.2025.910000455
Received: 22 October 2025; Accepted: 28 October 2025; Published: 15 November 2025
ABSTRACT
This study focuses on how Transformational Leadership affects Employee Engagement among 512 people
who took part in a survey in service and knowledge-based sectors. We used SEM and OLS regression and
discovered that Transformational Leadership is strongly linked with Employee Engagement (β ≈ 0.42, p <
.001), just as the general correlation between leaders and follower engagement previously shown in 86 studies
found (r ≈ 0.47). Furthermore, psychological empowerment came up as a key influence, agreeing with Fareed
et al.’s (2023) view of empowerment as what connects TFL to good project outcomes. Even though voice and
safety matters for employees enhanced how much TFL has achieved, belief in a just world and psychological
ownership were important factors in both this study and those conducted in organizations.
As evidence, new research from hospitality by Afsar et al. (2022) and from pharmaceuticals by Emerald
(2024) says that employee engagement links TFL with commitment and retention, and increases both affective
organizational commitment and job performance Because the current global cost of disengagement is very
high (close to US $8.8 trillion), these findings remind us why it is essential for organizations to focus on TFL.
Some practical ways are to build leadership development programs for the “four I’s,” add empowerment
routines, and create a fair workplace that supports psychological safety so that TFL truly helps achieve better
organizational results.
Keywords: Transformational Leadership, Employee Engagement, Empowerment, Organizational
Organizational Behavior.
INTRODUCTION
Having employees engaged on the job is vital for an organization’s success, per Gallup’s 2023 report, since
only 23% of people worldwide feel involved and more than two trillion dollars of productivity is lost globally
because of disengaged staff. As the world of work keeps evolving rapidly, leaders who encourage, motivate
and generate loyalty are highly valued. A major way to improve engagement at work is through
transformational leadership which focuses on vision, intellectual challenges, consideration of each person and
motivating inspiration (Bass & Riggio, 2006). Evidence from the last decade shows that employees of
transformational leaders are involved at work 32% more and wish to leave 27% less often (Saks, 2022; Wang
et al., 2023).
Trust and purpose have become more important than ever for leaders, as the COVID-19 pandemic and hybrid
work affected everyone. According to a study by McKinsey (2023), organizations that have transformational
leaders noted their employees were nearly 50% more satisfied with remote working. Also, a study conducted
by Ng (2022) proved that transformational leadership strengthens employee engagement everywhere and,
especially in knowledge-based sectors. On the other hand, although it is proven that transformational behaviors
matter, there is still more to learn about their role in helping workers stay involved in new work environments
through actions like making the workplace safe for people or keeping skills sharp.
This paper will explore the link between transformational leadership and employee engagement, basing its
method on the latest studies (between 2020 and 2024), real organizational information and examples from
firms like Microsoft and Unilever. While the primary data collection focuses on service and knowledge-based