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Abstract
This study investigates the relationship between servant leadership and turnover intention among Generation Z employees in Indonesia, focusing on the mediating role of principled ethical climate and the moderating role of interpersonal justice. A cross-sectional quantitative approach was employed, collecting data from 317 Gen Z employees with at least one year of direct supervision. Data were analyzed using the Hayes PROCESS Model. The findings reveal that servant leadership directly negatively affects turnover intention, emphasizing its effectiveness in reducing employees’ desire to leave the organization. However, servant leadership also positively influences a principled ethical climate, significantly increasing turnover intention. This highlights a dual effect: while servant leadership can enhance retention, it also fosters a principled ethical environment that may be perceived as restrictive by Gen Z employees, who prioritize flexibility, leading to higher turnover intention. Interpersonal justice significantly moderates the relationship between servant leadership and a principled ethical climate. High levels of interpersonal justice weaken the positive influence of servant leadership on a principled ethical environment. Nevertheless, the indirect effect of interpersonal justice on turnover intention is insignificant, indicating that its role primarily impacts organizational climate rather than directly influencing turnover intention. This study contributes to the literature by elucidating the complex interplay between servant leadership, ethical climate, and justice in the Gen Z workforce. Practically, organizations are encouraged to adopt servant leadership styles while promoting a flexible and equitable culture to retain Gen Z talent. Future research could use longitudinal or cross-cultural approaches to explore these dynamics further.
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Copyright (c) 2025 Safira Dwi Tyas Putri, Alice Salendu, Aditya Wira Pahlawan
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References
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- 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., & Roodt, G. (2013). The validation of the turnover intention scale. SA Journal of Human Resource Management, 11(1), 1-12. doi: https://doi.org/10.4102/sajhrm.v11i1.507
- Chyung, S.Y., Roberts, K., Swanson, I., & Hankinson, A. (2017). Evidence-based survey design: the use of a midpoint on the Likert scale. Performance Improvement, 56(10), 15-23. https://doi.org/10.1002/pfi.21727
- Colquitt, J. A. (2001). On the dimensionality of organizational justice: a construct validation of a measure. Journal of Applied Psychology, 86(3), 386–400. https://doi.org/10.1037/0021-9010.86.3.386
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- Gooty, J., & Yammarino, F. J. (2016). The leader–member exchange relationship: a multisource, cross-level investigation. Journal of Management, 42(4), 915-935. https://doi.org/10.1177/0149206313503009
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- Hair, J. F., Anderson, R. E., Babin, B. J., & Black, W. C. (2010). Multivariate Data Analysis: A Global Perspective (7th ed.). UK: Pearson Education.
- Halbusi, H., Ruiz‐Palomino, P., Jiménez-Estévez, P., & Gutiérrez-Broncano, S. (2021). How upper/middle managers' ethical leadership activates employee ethical behavior? the role of organizational justice perceptions among employees. Frontiers in Psychology, 12, 652471. https://doi.org/10.3389/fpsyg.2021.652471
- IDN Research Institute (2024). Indonesia Gen Z Report 2024. IDN Times. Retrieved from https://cdn.idntimes.com/content-documents/indonesia-Gen-z-report-2024.pdf
- Jang, S., Yoo, S., Lee, J. and Lee, Y. (2023). Serving for thriving: a moderated mediation analysis of the relationship between servant leadership and thriving at work. Personnel Review, 52(5), 345-1361. https://doi.org/10.1108/PR-08-2021-0602
- Joe, S., Hung, W., Chiu, C., Lin, C., & Hsu, Y. (2018). To quit or not to quit: understanding turnover intention from the perspective of ethical climate. Personnel Review, 47(5), 1067-1081. https://doi.org/10.1108/PR-04-2017-0124
- Kashyap, V., & Rangnekar, S. (2016). Servant leadership, employer brand perception, trust in leaders and turnover intentions: a sequential mediation model. Review of Managerial Science, 10, 437-461. https://doi.org/10.1007/S11846-014-0152-6
- Kopperud, K., Nerstad, C., & Dysvik, A. (2020). Should I stay or should i go? the role of motivational climate and work–home spillover for turnover intentions. Frontiers in Psychology, 11, 1107. https://doi.org/10.3389/fpsyg.2020.01107
- Lassleben, H., & Hofmann, L. (2023). Attracting gen Z talents: do expectations towards employers vary by gender?. Gender in Management: An International Journal, 38(4), 545-560. https://doi.org/10.1108/gm-08-2021-0247
- Leineweber, C., Peristera, P., Bernhard‐Oettel, C., & Eib, C. (2020). Is interpersonal justice related to group and organizational turnover? results from a Swedish panel study. Social Science & Medicine, 265, 113526. https://doi.org/10.1016/j.socscimed.2020.113526
- 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
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- 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
- Marquardt, D. J., Manegold, J., & Brown, L. W. (2022). Integrating relational systems theory with ethical leadership: how ethical leadership relates to employee turnover intentions. Leadership & Organization Development Journal, 43(1), 155-179. https://doi.org/10.1108/lodj-04-2021-0190
- Namin, B. H., Øgaard, T., & Røislien, J. (2021). Workplace incivility and turnover intention in organizations: a meta-analytic review. International Journal of Environmental Research and Public Health, 19(1), 25. https://doi.org/10.3390/ijerph19010025
- Omanwar, S., & Agrawal, R. (2021). Servant leadership, organizational identification and turnover intention: an empirical study in hospitals. International Journal of Organizational Analysis, 30(2), 239-258. https://doi.org/10.1108/IJOA-08-2020-2374
- Pichler, S., Kohli, C., & Granitz, N. (2021). DITTO for gen Z: a framework for leveraging the uniqueness of the new generation. Business Horizons, 64(5), 599-610. https://doi.org/10.1016/J.BUSHOR.2021.02.021
- Protsiuk, O. (2024). The mediation effect of supervisor support and total rewards on the relationship between flexible work arrangements and turnover intentions in gen Z. International Journal of Organizational Analysis, Vol. ahead-of-print No. ahead-of-print. https://doi.org/10.1108/ijoa-04-2024-4418
- Rohayati, T., Destalani, A. A., Arizka, H. D., Fahrezi, M. D., & Dwidienawati, D. (2023). Impact of job satisfaction, positive organizational culture, and meaningful work on turnover intention in Gen Z. WSEAS Transactions on Systems, 22, 613–621. https://doi.org/10.37394/23202.2023.22.62
- 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
- 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(15), 8959. https://doi.org/10.3390/ijerph19158959
- Sendjaya, S., Eva, N., Butar Butar, I., Robin, M., & Castles, S. (2019). SLBS-6: validation of a short form of the servant leadership behavior scale. Journal of Business Ethics, 156, 941-956. https://doi.org/10.1007/s10551-017-3594-3
- Seyfi, S., Vo‐Thanh, T., & Zaman, M. (2024). Hospitality in the age of gen Z: a critical reflection on evolving customer and workforce expectations. International Journal of Contemporary Hospitality Management, 36(13), 118-134. https://doi.org/10.1108/ijchm-01-2024-0035
- Simha, A., & Pandey, J. (2021). Trust, ethical climate and nurses’ turnover intention. Nursing Ethics, 28(5), 714-722. https://doi.org/10.1177/0969733020964855
- Son, S., Kim, D., & Kim, M. (2014). How perceived interpersonal justice relates to job burnout and intention to leave: the role of leader-member exchange and cognition-based trust in leaders: trust and burnout. Asian Journal of Social Psychology, 17, 12-24. https://doi.org/10.1111/AJSP.12038
- Syahputra, M. J., & Hendarman, A. F. (2024). The relationship between key factors and gen Z employee retention in Indonesian FMCG start-ups. International Journal of Current Science Research and Review, 7(7), 5600–5613. https://doi.org/10.47191/ijcsrr/V7-i7-85
- Victor, B., & Cullen, J. B. (1988). The organizational bases of ethical work climates. Administrative Science Quarterly, 33(1), 101–125. https://doi.org/10.2307/2392857
- Wang, S., Rofcanin, Y., Heras, M., Bosch, M., & Marescaux, E. (2023). Do you get what you desire? consequences of (mis) fit of desired versus actual servant leadership, and the role of context across 10 countries. BRQ Business Research Quarterly, 28(1), 220-235. https://doi.org/10.1177/23409444231168421
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References
Ahmad, R., Nawaz, M. R., Ishaq, M. I., Khan, M. M., & Ashraf, H. A. (2023). Social exchange theory: systematic review and future directions. Frontiers in Psychology, 13, 1015921. https://doi.org/10.3389/fpsyg.2022.1015921
Allen, D. G., & Vardaman, J. M. (2017). Recruitment and retention across cultures. Annual Review of Organizational Psychology and Organizational Behavior, 4, 153–181. https://doi.org/10.1146/annurev-orgpsych-032516-113100
Alolayyan, M., Nusairat, F., Abualhuda, S., & Azar, S. (2023). Association between servant leadership and nurses’ turnover intention: evidence from Jordan. BMJ Leader, 8, 253-257. https://doi.org/10.1136/leader-2023-000903
Anh Do, D., Diem Doan, Q., Khanh Vu, L., Thi Le, T., Minh Tran, N., & Linh Nguyen, G. (2023). Antecedents of turnover intention among Gen Z in Vietnam: the mediating role of affective commitment. Cogent Business & Management, 10(3), 2267811. https://doi.org/10.1080/23311975.2023.2267811
Bautista, P. Z. N., & Cahigas, M. M. L. (2024). Exploring employee retention among generation z engineers in the Philippines using machine learning techniques. Sustainability, 16(12), 5207. https://doi.org/10.3390/su16125207
Berber, N., Gašić, D., Katic, I., & Borocki, J. (2022). The mediating role of job satisfaction in the relationship between FWAs and turnover intentions. Sustainability, 14(8), 4502. https://doi.org/10.3390/su14084502
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., & Roodt, G. (2013). The validation of the turnover intention scale. SA Journal of Human Resource Management, 11(1), 1-12. doi: https://doi.org/10.4102/sajhrm.v11i1.507
Chyung, S.Y., Roberts, K., Swanson, I., & Hankinson, A. (2017). Evidence-based survey design: the use of a midpoint on the Likert scale. Performance Improvement, 56(10), 15-23. https://doi.org/10.1002/pfi.21727
Colquitt, J. A. (2001). On the dimensionality of organizational justice: a construct validation of a measure. Journal of Applied Psychology, 86(3), 386–400. https://doi.org/10.1037/0021-9010.86.3.386
Colquitt, J. A. (2012). Organizational Justice. In Kozlowski, S. W. J. (Ed.), The Oxford Handbook of Organizational Psychology (pp. 526-547). New York: Oxford University Press.
Cropanzano, R., Anthony, E. L., Daniels, S. R., & Hall, A. V. (2017). Social exchange theory: a critical review with theoretical remedies. The Academy of Management Annals, 11(1), 479–516. https://doi.org/10.5465/annals.2015.0099
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-09-2023-3994
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
DePass, D., & Tribune, S. (2023, March 18). Gen Z Job Market Turnover Expected to Exceed 2022 Levels. Star Tribune. Retrieved from https://www.startribune.com/gen-z-turnover-expected-to-exceed-2022-levels/600259842
Eisenberger, R., Armeli, S., Rexwinkel, B., Lynch, P. D., & Rhoades, L. (2001). Reciprocation of perceived organizational support. Journal of Applied Psychology, 86(1), 42–51. https://doi.org/10.1037/0021-9010.86.1.42
Febriana, A., & Mujib, M. (2024). Increasing productivity of gen z employees: the role of flexible work arrangements and participative style. SA Journal of Human Resource Management, 22, 2489. https://doi.org/10.4102/sajhrm.v22i0.2489
Gabriel, O. D., De Alwi, C. D. T. V., Jayang, E. A., & Wai, S. L. C. (2022). The impact of transformational leadership on generation Z employee retention and innovative behaviour: a case of Malaysian hotel industry. International Journal of Multicultural and Multireligious Understanding, 9(4), 35-53. https://dx.doi.org/10.18415/ijmmu.v9i4.3667
Gelfand, M. J., Aycan, Z., Erez, M., & Leung, K. (2017). Cross-cultural industrial organizational psychology and organizational behavior: a hundred-year journey. Journal of Applied Psychology, 102(3), 514–529. https://doi.org/10.1037/apl0000186
Gooty, J., & Yammarino, F. J. (2016). The leader–member exchange relationship: a multisource, cross-level investigation. Journal of Management, 42(4), 915-935. https://doi.org/10.1177/0149206313503009
Greenleaf, R. K. (1977) Servant Leadership: A Journey into the Nature of Legitimate Power and Greatness. New York: Paulist Press.
Hair, J. F., Anderson, R. E., Babin, B. J., & Black, W. C. (2010). Multivariate Data Analysis: A Global Perspective (7th ed.). UK: Pearson Education.
Halbusi, H., Ruiz‐Palomino, P., Jiménez-Estévez, P., & Gutiérrez-Broncano, S. (2021). How upper/middle managers' ethical leadership activates employee ethical behavior? the role of organizational justice perceptions among employees. Frontiers in Psychology, 12, 652471. https://doi.org/10.3389/fpsyg.2021.652471
IDN Research Institute (2024). Indonesia Gen Z Report 2024. IDN Times. Retrieved from https://cdn.idntimes.com/content-documents/indonesia-Gen-z-report-2024.pdf
Jang, S., Yoo, S., Lee, J. and Lee, Y. (2023). Serving for thriving: a moderated mediation analysis of the relationship between servant leadership and thriving at work. Personnel Review, 52(5), 345-1361. https://doi.org/10.1108/PR-08-2021-0602
Joe, S., Hung, W., Chiu, C., Lin, C., & Hsu, Y. (2018). To quit or not to quit: understanding turnover intention from the perspective of ethical climate. Personnel Review, 47(5), 1067-1081. https://doi.org/10.1108/PR-04-2017-0124
Kashyap, V., & Rangnekar, S. (2016). Servant leadership, employer brand perception, trust in leaders and turnover intentions: a sequential mediation model. Review of Managerial Science, 10, 437-461. https://doi.org/10.1007/S11846-014-0152-6
Kopperud, K., Nerstad, C., & Dysvik, A. (2020). Should I stay or should i go? the role of motivational climate and work–home spillover for turnover intentions. Frontiers in Psychology, 11, 1107. https://doi.org/10.3389/fpsyg.2020.01107
Lassleben, H., & Hofmann, L. (2023). Attracting gen Z talents: do expectations towards employers vary by gender?. Gender in Management: An International Journal, 38(4), 545-560. https://doi.org/10.1108/gm-08-2021-0247
Leineweber, C., Peristera, P., Bernhard‐Oettel, C., & Eib, C. (2020). Is interpersonal justice related to group and organizational turnover? results from a Swedish panel study. Social Science & Medicine, 265, 113526. https://doi.org/10.1016/j.socscimed.2020.113526
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
Lim, T., & Dini, Y. I. F. (2023). The mediating role of job satisfaction on gen Z employees turnover intention. International Journal of Educational Management and Innovation, 4(3), 243–253. https://doi.org/10.12928/ijemi.v4i3.8704
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
Marquardt, D. J., Manegold, J., & Brown, L. W. (2022). Integrating relational systems theory with ethical leadership: how ethical leadership relates to employee turnover intentions. Leadership & Organization Development Journal, 43(1), 155-179. https://doi.org/10.1108/lodj-04-2021-0190
Namin, B. H., Øgaard, T., & Røislien, J. (2021). Workplace incivility and turnover intention in organizations: a meta-analytic review. International Journal of Environmental Research and Public Health, 19(1), 25. https://doi.org/10.3390/ijerph19010025
Omanwar, S., & Agrawal, R. (2021). Servant leadership, organizational identification and turnover intention: an empirical study in hospitals. International Journal of Organizational Analysis, 30(2), 239-258. https://doi.org/10.1108/IJOA-08-2020-2374
Pichler, S., Kohli, C., & Granitz, N. (2021). DITTO for gen Z: a framework for leveraging the uniqueness of the new generation. Business Horizons, 64(5), 599-610. https://doi.org/10.1016/J.BUSHOR.2021.02.021
Protsiuk, O. (2024). The mediation effect of supervisor support and total rewards on the relationship between flexible work arrangements and turnover intentions in gen Z. International Journal of Organizational Analysis, Vol. ahead-of-print No. ahead-of-print. https://doi.org/10.1108/ijoa-04-2024-4418
Rohayati, T., Destalani, A. A., Arizka, H. D., Fahrezi, M. D., & Dwidienawati, D. (2023). Impact of job satisfaction, positive organizational culture, and meaningful work on turnover intention in Gen Z. WSEAS Transactions on Systems, 22, 613–621. https://doi.org/10.37394/23202.2023.22.62
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
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(15), 8959. https://doi.org/10.3390/ijerph19158959
Sendjaya, S., Eva, N., Butar Butar, I., Robin, M., & Castles, S. (2019). SLBS-6: validation of a short form of the servant leadership behavior scale. Journal of Business Ethics, 156, 941-956. https://doi.org/10.1007/s10551-017-3594-3
Seyfi, S., Vo‐Thanh, T., & Zaman, M. (2024). Hospitality in the age of gen Z: a critical reflection on evolving customer and workforce expectations. International Journal of Contemporary Hospitality Management, 36(13), 118-134. https://doi.org/10.1108/ijchm-01-2024-0035
Simha, A., & Pandey, J. (2021). Trust, ethical climate and nurses’ turnover intention. Nursing Ethics, 28(5), 714-722. https://doi.org/10.1177/0969733020964855
Son, S., Kim, D., & Kim, M. (2014). How perceived interpersonal justice relates to job burnout and intention to leave: the role of leader-member exchange and cognition-based trust in leaders: trust and burnout. Asian Journal of Social Psychology, 17, 12-24. https://doi.org/10.1111/AJSP.12038
Syahputra, M. J., & Hendarman, A. F. (2024). The relationship between key factors and gen Z employee retention in Indonesian FMCG start-ups. International Journal of Current Science Research and Review, 7(7), 5600–5613. https://doi.org/10.47191/ijcsrr/V7-i7-85
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