The Transformational Leadership Influence on Millennials' Commitment and Intention to Stay

Abstract

This article analyzes the relation between transformational leaders and the commitment of Generation Y (or Millennials) team members. The research is quantitative in nature, carried out by means of a survey. Workers across Brazil answered the questionnaire, resulting in a sample of 732 valid responses. Hypothesis testing was performed using structural equation modeling (SEM). The study validated part of the proposed hypotheses, indicating the observed variables that may influence the Organizational Commitment of Millennial workers. Intellectual Stimulation and Idealized Influence stand out among the components of Transformational Leadership that correlated with Commitment. No correlations between the components Individualized Consideration and Inspirational Motivation with Affective Commitment were found, which suggests that leaders who treat each Millennial in their own individuality or communicate in a confident, thought-provoking, and motivating way do not necessarily strengthen the bonds of Millennials with the organization. The analysis of the relationship between the components of Commitment and high performance pointed out that Millennials who have a strong connection of sympathy and affection for the organization are interested in the company's future, take ownership of the organization's objectives, or treat the company's problems as if they were their own. These workers are the ones who claim to have a differentiated performance. However, no relationships were found between Millennial’s superior performance and pride in belonging, finding personal meaning in working in the company, speaking positively about the organization to friends, inspiring the best of oneself, and identifying with the organization's values. The analyses suggest that organization leaders can promote a stronger bond between organization and Millennials when they act as role models, demonstrate their own commitment to the organization, and encourage their Millennial subordinates to seek innovative solutions.