To Stay or to Leave? How Ethical Climates and Leadership Styles Influence Gen Z Turnover Intention
DOI:
https://doi.org/10.15408/tazkiya.v13i2.43116Keywords:
ethical climate, generation z, mediation, servant leadership, transformational leadership, turnover intentionAbstract
Generation Z values inclusive and supportive workplaces but often exhibits high turnover intention. This study examines how transformational and servant leadership influence turnover intention among Gen Z employees in Indonesia, with caring and self-interest ethical climates as mediators. A cross-sectional survey of 314 Gen Z employees was analyzed using structural equation modeling (SEM). Results show that caring ethical climate did not significantly relate to turnover intention or mediate the leadership–turnover link. In contrast, self-interest ethical climate showed a strong positive relationship with turnover intention and served as a significant mediator. These findings indicate that servant leadership is more effective than transformational leadership in reducing Gen Z turnover intention by diminishing self-interest ethical climate, while caring ethical climate may have limited relevance across generations.
Downloads
References
Ali, B. J. & Anwar, G. (2021). Employee turnover intention and job satisfaction. International Journal of Advanced Engineering, Management and Science, 7(6), 22-30. https://doi.org/10.22161/ijaems.76.3
Bandura, A. (1977), Social Learning Theory. Prentice-Hall.
Barattucci, M., Teresi, M., Pietroni, D., Iacobucci, S., Lo Presti, A., & Pagliaro, S. (2021). Ethical climate(s), distributed leadership, and work outcomes: The mediating role of organizational identification. Frontiers in Psychology, 11, 564112. https://doi.org/10.3389/fpsyg.2020.564112
Bieńkowska, A., Koszela, A., Ludwikowska, K.,&Tworek, K.(2022). Turnover-mitigating effect of servant leadership on job performance. Engineering Management in Production and Services, 14,67-81. https://doi.org/10.2478/emj-2022-0017
Borrelli, I., Rossi, M., Melcore, G., Perrotta, A., Santoro, P., Gualano, M., & Moscato, U. (2023). Workplace ethical climate and workers' burnout: A systematic review. Clinical neuropsychiatry, 20 5, 405-414 . https://doi.org/10.36131/cnfioritieditore20230502
Bothma, C. F., & Roodt, G. (2013). The validation of the turnover intention scale. SA journal of human resource management, 11(1), 1-12. https://doi.org/10.4102/sajhrm.v11i1.507
Carless, S. A., Wearing, A. J., & Mann, L. (2000). A short measure of transformational leadership. Journal of Business and Psychology, 14(3), 389–405. https://doi.org/10.1023/A:1022991115523
Chua, J., & Ayoko, O. B. (2021). Employees’ self-determined motivation, transformational leadership and work engagement. Journal of Management & Organization, 27(3), 523–543. https://doi.org/10.1017/jmo.2018.74
Cullen, J. B., Victor, B., & Bronson, J. W. (1993). The ethical climate questionnaire: An assessment of its development and vchuodity. Psychological Reports, 73(2), 667-674.
Das, A. K., & Malik, P. (2025). Ascertaining factors inducing engagement and stay intention among Gen Z: A qualitative study in the Indian context. International Journal of Organizational Analysis, 33(1), 163–184. https://doi.org/10.1108/IJOA-09-2023-399
Davies, S., Stoermer, S., & Froese, F. (2019). When the going gets tough: The influence of expatriate resilience and perceived organizational inclusion climate on work adjustment and turnover intentions. The International Journal of Human Resource Management, 30, 1393-1417. https://doi.org/10.1080/09585192.2018.1528558
Deng, D., Ye, C., Wu, F., Guo, Y., Li, H., & Wang, C. (2023). Effect of organizational ethical self-interest climate on unethical accounting behaviour with two different motivations in China: The moderating effect of confucian shizhong thinking. Humanities and Social Sciences Communications, 10(1), 525. https://doi.org/10.1057/s41599-023-01995-2
DePass, D., & Tribune, S. (2023, March 18). Gen Z job market turnover expected to exceed 2022 levels. Star Tribune. https://www.startribune.com/gen-z-turnover-expected-to-exceed-2022-levels/600259842
DeRue, D. S., & Ashford, S. J. (2010). Who will lead and who will follow? A social process of leadership identity construction in organizations. Academy of Management Review, 35(4), 627-647. https://psycnet.apa.org/doi/10.5465/AMR.2010.53503267
Dimock, M. (2019, January 17). Defining generations: Where Millennials end and Generation Z begins. Pew Research Center. https://www.pewresearch.org/short-reads/2019/01/17/where-millennials-end-and-generation-z-begins/
Eva, N., Robin, M., Sendjaya, S., Van Dierendonck, D., & Liden, R. C. (2019). Servant leadership: A systematic review and call for future research. The Leadership Quarterly, 30(1), 111–132. https://doi.org/10.1016/j.leaqua.2018.07.004
Fauziyyah, A., & Luzvinda, L. (2019). Effect of job satisfaction and gratitude on organizational citizenship behavior. Tazkiya: Journal of Psychology, 5(1). https://doi.org/10.15408/tazkiya.v22i1.8145
Greenleaf, R. K. (1977). Servant leadership: A journey into the nature of legitimate power and greatness. Paulist Press.
Gunawan, C. I., Maharani, N. D., & Irawanto, D. W. (2024). Modeling affective commitment and job satisfaction as a mediating role in predicting turnover intention among Gen Z employees. JBTI: Jurnal Bisnis: Teori dan Implementasi, 15(2), 143-160. https://doi.org/10.18196/jbti.v15i2.20881
Grojean, M. W., Resick, C. J., Dickson, M. W., & Smith, D. B. (2004). Leaders, values, and organizational climate: Examining leadership strategies for establishing an organizational climate regarding ethics: JBE. Journal of Business Ethics, 55(3), 223-241. https://doi.org/10.1007/s10551-004-1275-5
IDN Research Institute (2024). Indonesia Gen Z report 2024. IDN Times. https://cdn.idntimes.com/content-documents/indonesia-gen-z-report-2024.pdf
Joe SW, Hung WT, Chiu CK, Lin CP, Hsu YC (2018). To quit or not to quit: Understanding turnover intention from the perspective of ethical climate. Pers Rev. 47(5), 1062–1076. https://doi.org/10.1108/PR-04-2017-0124
Kelley, S.W. and Dorsch, M.J. (1991),“Ethical climate, organizational commitment, and indebtedness among purchasing executives”, The Journal of Personal Selling and Sales Management, 11(4), 55-66. https://doi.org/10.1080/08853134.1991.10753890
Kohlberg, L. (1981). Essays on moral development: Vol. 1. The philosophy of moral development: Moral stages and the idea of justice. Harper & Row.
Lassleben, H., & Hofmann, L. (2023). Attracting Gen Z talents: Do expectations towards employers vary by gender?. Gender in Management: An International Journal. https://doi.org/10.1108/gm-08-2021-024
Li, Y., Huang, H., & Chen, Y. (2020). Organizational climate, job satisfaction, and turnover in voluntary child welfare workers. Children and Youth Services Review, 119, 105640. https://doi.org/10.1016/j.childyouth.2020.105640
Loring, A., & Wang, J. (2022). Engaging Gen Z in professional selling: A systematic literature review. European Journal of Training and Development, 46(5/6), 413–433. https://doi.org/10.1108/EJTD-07-2020-0120
Marques, T., Crespo, C. F., Pina e Cunha, M., Caçador, M., & Dias, S. S. (2023). Responsible leadership and turnover intentions in health-care professionals: The mediating role of burnout. Leadership in Health Services, 36(4), 562–578. https://doi.org/10.1108/LHS-11-2022-0109
Nabila, S. H., Salendu, A., & Nadia, S. (2025). Lead, care, or lose? Transformational leadership, ethical climate, and the impact of physical work environment on turnover intention among Generation Z workers. ANIMA Indonesian Psychological Journal, 40(2), E04-E04.
Nadia, S., Salendu, A., & Nabila, S. H. (2025). How servant leadership makes Gen Z stay: Examining the mediating influence of caring and self-interest ethical climate. Journal of Human Values, https://doi.org/10.1177/09716858251358452
Pagliaro, S., Lo Presti, A., Barattucci, M., Giannella, V. A., & Barreto, M. (2018). On the effects of ethical climate(s) on employees’ behavior: A social identity approach. Frontiers in Psychology, 9, 960. https://doi.org/10.3389/fpsyg.2018.00960
Parboteeah, K. P., Weiss, M., & Hoegl, M. (2024). Ethical climates across national contexts: A meta-analytical investigation. Journal of Business Ethics, 189(3), 573–590. https://doi.org/10.1007/s10551-023-05387-z
Petriglieri, J.L. (2011). Under threat: Responses to and the consequences of threats to individuals’ identities. The Academy of Management Review, 36(4), 641–662. http://dx.doi.org/10.5465/amr.2009.0087
Pichler, S., Kohli, C., & Granitz, N. (2021). Ditto for Gen Z: A framework for leveraging the uniqueness of the new generation. Business Horizons. https://doi.org/10.1016/J.BUSHOR.2021.02.021.
Putri, S. D. T., Salendu, A., & Pahlawan, A. W. (2025). Understanding turnover intention in Gen Z: Servant leadership and ethical climate in organization. Asian Management and Business Review, 5(1), 216–230. https://doi.org/10.20885/AMBR.vol5.iss1.art14
Ozyer, K., Aydin, E. M., Azizoglu, O., & Erenler, E. (2010). Management and world business. Journal of Management and World Business Research. 7(1), 1–12.
Ryu, H., Hyun, D., Jeung, D., Kim, C., & Chang, S. (2020). Organizational climate effects on the relationship between emotional labor and turnover intention in korean firefighters. Safety and Health at Work, 11, 479 - 484. https://doi.org/10.1016/j.shaw.2020.08.007
Sagnak, M. (2010). The relationship between transformational school leadership and ethical climate. Educational sciences. Theory and practice, 10(2), 1135-1152.
Saleh, T., Sarwar, A., Islam, M., Mohiuddin, M., & Su, Z. (2022). Effects of leader conscientiousness and ethical leadership on employee turnover intention: The mediating role of individual ethical climate and emotional exhaustion. International Journal of Environmental Research and Public Health, 19. https://doi.org/10.3390/ijerph19158959
Schroth, H. (2019). Are you ready for Gen Z in the workplace?. California Management Review. 61(3), 5–18. https://doi.org/10.1177/0008125619841006
Sendjaya, S. (2015). Personal and organizational excellence through servant leadership. Springer International Publishing Switzerland.
Sendjaya, S., Eva, N., Robin, M., Sugianto, L., ButarButar, I., & Hartel, C. (2019). Leading others to go beyond the call of duty: A dyadic study of servant leadership and psychological ethical climate. Personnel Review, 49(2), 620–635. https://doi.org/10.1108/PR-08-2018-0285
Sheedy, E., Garcia, P., & Jepsen, D. (2021). The role of risk climate and ethical self-interest climate in predicting unethical pro-organisational behaviour. Journal of Business Ethics, 173(2), 281–300. https://doi.org/10.1007/s10551-020-04542-0
Simha, A., & Pandey, J. (2020). Trust, ethical climate, and nurses’ turnover intention. Nursing Ethics, 28, 714 - 722. https://doi.org/10.1177/0969733020964855
Suryawan, I. G. R., Ardana, I. K., & Suwandana, I. G. M. (2021). Transformational leadership, work stress and turnover intention: The mediating role of job satisfaction. American Journal of Humanities and Social Sciences Research, 5(1), 146–157.
Tett, R.P., & Meyer, J.P. (1993). Job satisfaction, organisational commitment, turnover intention, and turnover: Path analyses based on meta-analytic findings. Personnel Psychology, 46(2), 259–293. http://dx.doi.org/10.1111/j.1744-6570.1993.tb00874.x
Victor, B., & Cullen, J. B. (1988). The organizational bases of ethical work climates. Administrative Science Quarterly, 33(1), 101. https://doi.org/10.2307/2392857
Weber, J., & Opoku-Dakwa, A. (2022). Ethical work climate 2.0: A normative reformulation of Victor and Cullen’s 1988 framework. Journal of Business Ethics, 178(3), 629-646. https://doi.org/10.1007/s10551-021-04778-4
Westbrook, K.,&Peterson, R.(2022).Servant leadership effects on salesperson self-efficacy, performance, job satisfaction, and turnover intentions. Journal of Business-to-Business Marketing, 29,29,153-175. https://doi.org/10.1080/1051712X.2022.2068820
Wiliyanto, I., Sudiarditha, I. K., & Yohana, C. (2020). Influence of work environment toward turnover intention with motivation and job satisfaction as intervening variables in PT. TSA. International Journal on Advanced Science, Education, and Religion, 3(1), 11–21. https://doi.org/10.33648/ijoaser.v3i1.42
Yuniarti, A., & Muchtar, D. Y. (2019). Pengaruh modal psikologis dan persepsi gaya kepemimpinan transformasional terhadap workplace well-being. Tazkiya: Journal of Psychology, 4(2). https://doi.org/10.15408/tazkiya.v4i2.1084
Downloads
Published
Issue
Section
License
Copyright (c) 2025 Tazkiya Journal of Psychology
This work is licensed under a Creative Commons Attribution-ShareAlike 4.0 International License.
