The Impact of Communication Transparency and Transformational Leadership on Perceived Employee Retention in Malaysian Companies: the Mediating Role of Job Embeddedness

Cho, Chooi Wen (2025) The Impact of Communication Transparency and Transformational Leadership on Perceived Employee Retention in Malaysian Companies: the Mediating Role of Job Embeddedness. Masters thesis, Tunku Abdul Rahman University of Management and Technology.

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Abstract

In the wake of shifting employee expectations and post-pandemic workforce dynamics, employee retention remains a critical challenge for Malaysian organisations, threatening both operational stability and long-term sustainability. This study examines the influence of communication transparency and transformational leadership on perceived employee retention, with job embeddedness acting as a mediating variable. The research is underpinned by job embeddedness theory, social exchange theory, and transformational leadership theory. To achieve the objectives of this study, a quantitative, cross-sectional design was employed. Primary data were collected via an online survey from 250 employees across Malaysian companies and analysed using the Statistical Package for the Social Sciences (SPSS). The findings reveal that both communication transparency and transformational leadership positively affect job embeddedness, which in turn significantly enhances perceived employee retention. However, transformational leadership did not exert a direct effect on retention, underscoring the mediating role of job embeddedness. These findings offer valuable insights for improving communication practices, strengthening leadership effectiveness, and embedding employees more deeply within their organisations to support long-term workforce stability. Keywords: Communication Transparency, Transformational Leadership, Job Embeddedness, Perceived Employee Retention, Corporate Governance