Psychological Empowerment, Work Engagement and Turnover Intention: The Role of Leader Relations and Role Clarity in a Financial Institution

This study investigated the relationship between leader-member exchange, role clarity, psychological empowerment, engagement and turnover intention within a financial institution in South Africa. A cross-sectional survey design was used. A convenience sample (N = 278) was taken (males = 31%, females = 60%; 88% younger than 35 years; 57% with 2 - 5 years service) from the total population (N = 889). They completed the Leader-Member Exchange Questionnaire (Liden, Wayne, & Stilwell, 1993) Role Conflict and Ambiguity Questionnaire (Rizzo, House, & Lirtzman, 1970), Measuring Empowerment Questionnaire (Spreitzer, 1995), Engagement Questionnaire (May, Gilson, & Harter, 2004) and Intention-to-leave Scale (Sjoberg & Sverke, 2000). A path model was tested with SPSS to determine the relationships of the variables. Furthermore, a theoretical model was tested through the use of structural equation modelling (Arbuckle, 2008). The latent variables included LMX (consisting of two parcels), role clarity (consisting of two parcels), psychological empowerment (consisting of four variables, namely meaning, competence, impact, and self-determination), work engagement (consisting of two parcels), and turnover intention (a manifest variable). Role clarity mediated the relationship between leader-member exchange and psychological empowerment, while psychological empowerment mediated the relationship between role clarity and work engagement as well as turnover intention. Leader-member relations lead to better understanding of roles, while role clarity empowers and engages employees.