Generation Z Software Employees Turnover Intention: Niharika Gaan Yuhyung Shin
Generation Z Software Employees Turnover Intention: Niharika Gaan Yuhyung Shin
Generation Z Software Employees Turnover Intention: Niharika Gaan Yuhyung Shin
https://doi.org/10.1007/s12144-022-03847-9
Abstract
This study applied the social exchange and social identity theories to investigate the association among resonant leadership,
self-efficacy, organizational identification, work performance, and turnover intentions in Generation-Z (Gen-Z) software
professionals. The study sampled 73 leader-subordinate dyads from 10 large-scale software companies in India through an
online survey. Hierarchical linear modeling, including multilevel mediation, was conducted to test the proposed model. The
results of this study revealed the cross-level effect of resonant leadership on the work-related outcomes among the Gen-Z
software operators based on two psychological mediators, namely, self-efficacy and organizational identification. It suggests
that resonant leadership could be the potential driver to manage the predominant psychological factors of the incoming cohort
group of Gen-Z software professionals, which yield positive work outcomes. Based on the empirical evidence, the software
companies can devise suitable intervention mechanisms to enhance productivity and reduce turnover intentions of the Gen-Z
cohort. Thus, this study is a novel attempt to establish a comprehensive theoretical framework that provides a broad scope
for future research to investigate the mechanisms which manage the expectations of Gen-Z cohorts.
Keywords Resonant leadership · Work performance · Self-efficacy · Organizational identification · Turnover intention
There has been immense growth in the Indian information the COVID-19 pandemic (Barhate & Dirani, 2022), thus
technology (IT) industry, particularly the software industry, creating a multigenerational work environment. Organiza-
over the past two decades. However, several challenges were tional leaders experienced significant challenges in address-
experienced during the coronavirus disease 2019 (COVID- ing employee expectations (Benítez-Márquez et al., 2021)
19) pandemic. One such challenge was the decline in the because of differences in values, preferences, attitudes, and
profit margin resulting from a sharp decline in export ser- behaviors among generations (Twenge, 2010). Furthermore,
vices, which account for a significant amount of revenue Gen-Z employees outnumber other generations and thus are
(Malik & Velan, 2020). Another challenge was the alarming likely to have more influence in the workplace (Barhate &
attrition rate (Pramanik, 2021; Raja Simhan, 2020), which Dirani, 2022; Miller & Lu, 2018). As a result, this attention
normally staggers at approximately 21.8% (Srirangam emphasizes the need for scholars and practitioners to under-
Ramaprasad et al., 2018). The IT industry is labor-, tech- stand their work outcomes.
nology-, and knowledge-intensive (Mathew, 2007); how- Gen-Z refers to individuals born after 1995 (Bolser &
ever, it experiences the perennial issue of a high attrition Gosciej, 2015). These individuals are identified as collec-
rate, which creates major concerns for the attraction and tive thinkers who are realistic, open-minded, digital inte-
retention of talent (Bhatnagar, 2007). The software sector grators. In contrast to previous generations, Gen-Z has
workforce underwent a rapid change in landscape owing to been regarded as individualized and disrespectful toward
the high influx of generation-Z (Gen-Z) professionals during authority and leaders (Burton et al., 2019). Previous stud-
ies suggested that each generation comprises favorable
* Niharika Gaan
and unfavorable characteristics that influence workplace
[email protected] outcomes (Costanza & Finkelstein, 2015; Twenge, 2010).
Yuhyung Shin
For example, the highly nomadic behavior of Gen-Z indi-
[email protected] cates a lack of organizational identification suggesting that
long-term loyalty to organizations is not a priority of the
1
MDI Murshidabad, Murshidabad, West Bengal, India individual (Chillakuri & Mahanandia, 2018). Reportedly,
2
School of Business, Hanyang University, Seoul, Korea
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Current Psychology (2023) 42:27344–27359 27345
these attributes intensified because of the accelerated rate of (Jayathilake et al., 2021). This orientation may improve self-
change (Batra, 2020) and the lasting impact of COVID-19 efficacy among Gen-Z employees (Arpita & Dawlinmaria,
in the work context (Kniffin et al., 2020), which had adverse 2020; Gomes & Deuling, 2019), inevitably increasing their
effects on employee performance (Becker, 2021; Muzumder performance when delivering work remotely (Bayraktar &
et al., 2021). Similarly, the dependence on organizational Jiménez, 2020). Moreover, a resonant leader creates a flexible
support among Gen-Z may be because of undermined self- environment (Marques, 2015) that can meet expectations and
autonomy since childhood (Evans & Karl, 2021; Schroth, manage crises among Gen-Z employees (Stoker et al, 2019).
2019). This dependence may interfere with managing task Thus, the willingness to stay within an organization increases
complexities (Arpita & Dawlinmaria, 2020) that are com- extensively, resulting in positive outcomes (Suifan et al.,
mon in the software sector (Cummings & Worley, 2009), 2020). However, studies that link resonant leadership with
thus suggesting a lack of innate self-efficacy, which may work outcomes among Gen-Z employees using self-efficacy
hinder continuous skill and career advancement (Bocciardi and organizational identification are notably limited.
et al., 2017). Consequently, psychological distress can be Currently, there are few studies that investigate the multi-
exacerbated, by a lack of organizational support while work- level effects of leadership on the behavior of Gen-Z employ-
ing remotely in an unprecedented crisis (Becker et al., 2020; ees because of their dyadic association (Gaan & Shin, 2022;
Russo et al., 2021). According to previous studies, continual Yammarino et al., 2012), particularly when the software sector
psychological distress has been associated with an increased comprises team- and project-based tasks. Therefore, resonant
attrition rate (Nigam et al., 2011) and decreased produc- leadership is expected to exhibit direct and indirect effects on
tivity (Bayraktar & Jiménez, 2020; Cummings & Worley, the professional performance of Gen-Z software employees in
2009). Existing literature that identifies the levers of previ- the context of a crisis (Gaan & Shin, 2022; Lenka & Tiwari,
ous generations’ work outcomes is adequate. However, the 2016). Furthermore, attrition levels are influenced by provid-
exceeding figure of the Gen-Z cohort in the workplace sug- ing coping skills (Lenka & Tiwari, 2016). An adequate amount
gests a notable lack in the literature underscoring the prob- of empirical research is available, underscoring the multilevel
able predictors of work outcomes among Gen-Z employees effect of leadership on the behaviors of generational cohorts
(Chillakuri & Mahanandia, 2018; Pandita & Kumar, 2021). of employees (Lord et al., 2001; D’Amato & Baruch, 2020)
A few studies have hypothesized that leadership is a poten- other than Gen-Z.
tial lever for the Gen-Z cohort’s behavior (Schroth, 2019), To bridge the gap in literature, this study provides meaning-
particularly from a cultural perspective (Deal et al., 2012). ful contributions to the existing Gen-Z literature. This study
Other studies have observed that leadership style preferences has several aims. First, this investigation combines the litera-
vary across generations (Anderson et al., 2017; Rudolph ture on Gen-Z, leadership with studies on the software indus-
et al., 2018). Previous investigations in the software sector try. Second, the mechanism of mediation within leadership
have shown that leadership is a crucial lever for employees’ processes reflects a unique framework that outlines the sig-
work behavior in terms of turnover intention (Sahu et al., nificance of self-efficacy and organizational identification as
2018) and performance (Gaan & Shin, 2022; Huckman et al., mediators, resonant leadership as antecedents, as well as work
2008). However, generalizations of leadership are not appli- performance and turnover intention as the potential outcomes
cable across generations. Among the several types of lead- among Gen-Z. Thus, this study emphasizes the distal effect of
ership, a resonant leader embodies an overarching vision, leadership on Gen-Z employees work outcomes by delineating
positive mood, and compassion (Boyatzis et al., 2006), which the mediating constructs, such as self-efficacy and organiza-
aids in overcoming unprecedented challenges (Mahon et al., tional identification (Antonakis et al., 2011). Third, the social
2014). Furthermore, they aim to strengthen identification exchange and social identity theories comprise the theoretical
among individuals within the organization using a transfor- framework delineating the direct and indirect effects of leader-
mational approach (Marques, 2015; Schuh et al., 2012), and ship on Gen-Z work outcomes. As a result, a novel perspective
to maintain ongoing conversations to establish emotional of Gen-Z is introduced to existing theories.
bridges (Lenka & Tiwari, 2016). Thus, resonant leaders help
to solve the environmental demands of businesses (Malik &
Velan, 2020). Consequently, Gen-Z employees’ work out- Theoretical framework and hypothesis
comes are enhanced (Becker, 2021; Dukerich et al., 2002; development
Ngo et al., 2013; Pandita & Kumar 2021) in a remote con-
text (Gaan & Shin, 2022). Resonant leaders orient themselves Social exchange theory
toward self-renewal, growth, and the development of others
(Boyatzis & Mckee, 2005) which facilitates the mitigation of The social exchange theory (SET) refers to the exchange
work-related issues experienced by Gen-Z resulting from the of resources between leaders and subordinates in a series
radical changes that emerged during the COVID-19 pandemic of interactive processes that may include materials or
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27346 Current Psychology (2023) 42:27344–27359
non-materials, which consequently yield obligations (Blau, the tendency of employees to identify with the organization
1964; Cropanzano & Mitchell, 2005; Emerson, 1976; based on its salient prototypical characteristics.
Homans, 1958; Thibaut & Kelley, 1959). The bi- or multi- Social identity and exchange complement each other (van
directional resource exchange among actors depends on Knippenberg & Schippers, 2007). The theoretical frame-
several conditions: First, the resources invested by one works underscore the assumption that social exchanges, such
actor in other actors must result in the reciprocal behav- as self-efficacy, cannot be sustained or effective to ensure a
ior of the latter. Furthermore, the value of the investment positive work outcome unless the Gen-Z cohort identifies or
must exceed the value and utility of the resources received relates their individual self-concept with the organization.
from another actor as a reciprocal behavior resulting in the Thus, a leader may enhance the Gen-Z cohort’s contribution
loss of resources for the investing actor. Second, the two- to the organization by assisting them to identify the organi-
way exchanges among actors should be continuous and the zation’s prototypical characteristics, ensuring that indi-
leader–subordinate exchange of resources should be bidi- viduals work for the collective interest of the organization.
rectional. For instance, employees exchange work for pay, Therefore, a leader’s support in enabling the psychological
which, in turn, produces beneficial outcomes, including sources of subordinates (self-efficacy) can be made effective
a sense of personal obligation, gratitude, and trust (Blau, when organizational salience is internalized by subordinates
1964; Schroth, 2019), consequently enhancing satisfaction, during the process of self-categorization (van Knippenberg
organizational commitment, and turnover intention (Lu & & Hogg, 2003).
Gursoy, 2016) among subordinates.
SET applies to leaders who have a relational and interac-
tive approach (Gürbüz et al., 2014), which aligns best with Resonant leadership and work performance
resonant leadership. The relational orientation of resonant of Gen‑Z
leadership (Marques, 2015) suggests that a resonant leader
will exchange self-efficacy with the Gen-Z cohort using the Sustainable and favorable work outcomes of subordinates
approaches of self-renewal and development, which is pre- have been observed to be positively predicted by an appro-
dominantly expected by Gen-Z employees. Consequently, priate leadership style that inspires employees to produce
positive emotions are evoked (Thibaut & Kelley, 1959) in effective results (Wong et al., 2013). In contrast to previous
Gen-Z employees to reciprocate positive work outcomes generations, the performance of Gen-Z employees depends
(Grant et al., 2011; Kark et al., 2003; Lu & Gursoy, 2016). highly on the leader as they tend to mitigate expectations
that emerge from assigned roles which can interfere with
their performance (Wilkie, 2019). Furthermore, existing
literature indicates that the Gen-Z cohort has weak inter-
Social identity theory personal skills owing to over-reliance on digital technology,
social media, and mobile communications (Becker et al.,
The social identity theory (SIT) focuses on group member- 2020) even during leisure hours (Twenge, 2017). Conse-
ship and self-behavior (Hogg et al., 1995). An individual is quently, these individuals lack social skills and emotional
linked to a group based on cognitive schema wherein core stability (Twenge, 2017; Twenge et al., 2019). Furthermore,
concepts regarding the self (i.e., enduring identity) are partly these weaknesses impair work performance, particularly
determined by the peripheral concept (group identity). The with the onset of COVID-19 and associated remote work
core concept refers to an individual’s personal history, adap- practices. Reportedly, these work practices do not fit with
tation to social situations, goals, motives, and needs (Turner the nature of the occupation in the software industry, which
& Onorato, 1999, pp. 15–16). In contrast, the peripheral con- is typically project- and team-driven (Huckman et al., 2008;
cept embodies self-concept, which is more fluid and allows Mathew, 2007). Moreover, their advocacy for work-life bal-
the individual to adopt various roles and group identities. ance contradicts the culture of extensive working hours in
In addition to the individual–group dyads, the group con- the software sector (Armstrong et al., 2007) and overwork
cept covers organizations that serve as groups that influence during COVID-19 (Russo et al., 2021). However, all issues
individual performance (Hogg & Terry, 2000; Pratt, 2003). associated with Gen-Z are presumably resolved through
Socialization provides individuals with the values and emo- human connections, which are inherently present in resonant
tional attributes of group membership (Hogg & Terry, 2000) leaders who exhibit an empathetic approach (Goleman et al.,
as well as an extended identity. While the power of social 2002, 2013). Resonant leaders display characteristics such
identity is variable, it always exceeds the power of individ- as compassion, hope, and mindfulness. These attributes are
ual identity (Hogg & McGarty, 1990). Thus, studies argue required in the digital era to mitigate challenges arising from
from the perspective of SIT that organizational identity is incessant crises and pressure (McKee & Massimilian, 2006).
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Managing the conversation in the digital space (Smith et al., one’s attitude (Chillakuri & Mahanandia, 2018; Goh & Lee,
2011) can facilitate the Gen-Z project team cohort to con- 2018) in the initial stage of their career (Becker et al., 2020).
front the challenges associated with social and interpersonal However, effective mobility in the market for software pro-
skills owing to the physical distance (Russo et al., 2021) fessionals is not a challenge (Singh et al., 2012). Under such
during the COVID-19 pandemic (Gaan & Shin, 2022). Con- circumstances, the vibrance and flexibility of resonant lead-
sequently, emotional clarity (Burton et al., 2019) and con- ership are anticipated to work conveniently in the digital
tentment in the team inadvertently emerge within employees, space (McKee & Massimilian, 2006). Moreover, the ability
thus encouraging positive behavior (Becker et al., 2020; Lor- to mobilize resources among project team members in crisis
ing & Wang, 2021; Wagner et al., 2013) despite the context (Gaan & Shin, 2022; Lenka & Tiwari, 2016) is enhanced to
of the pandemic (Gaan & Shin, 2022). accommodate the expectations of Gen-Z employees. Thus,
According to the SET, social exchanges between lead- a leadership approach that incorporates elements of trans-
ers and subordinates will inspire and obligate employees formation (Marques, 2015) and flexibility can explain the
to perform effectively (Rhoades & Eisenberger, 2002) at significant negative variance in the team members’ turnover
individual and dyadic levels, in the context of COVID-19 intention (Sahu et al., 2018; Squires et al., 2010) and mitigate
(Gaan & Shin, 2022; Yammarino et al., 2012). Therefore, emerging complexities during a crisis (Stoker et al., 2019).
studies have hypothesized that resonant leaders with desired According to SET, the employee’s perceived quality of
self-regulation and awareness (Goleman et al., 2013) main- the beneficial personal and professional exchange relation-
tain social exchanges to develop interpersonal communica- ship with the leader (Chaudhuri & Ghosh, 2012) can predict
tion, social skills, and emotional stability (Cropanzano & withdrawal behavior or turnover intention at the individual
Mitchell, 2005) amidst incessant crises and pressure, while and the dyadic level (Eisenberger et al., 2002; Waldman
simultaneously addressing the Gen-Z cohort’s expectations et al., 2015). However, there are limited studies in the soft-
(Boyatzis & McKee, 2005). Consequently, Gen-Z employees ware sector that underscore the association between team-
will feel obliged to demonstrate desired performance (Gaan level resonant leadership and the turnover intention of team
& Shin, 2022; Lu & Gursoy, 2016). There is a severe gap members constituting the Gen-Z cohort. Thus, the following
in literature regarding the cross-level association between hypothesis was derived:
resonant leadership styles and Gen-Z software professional
performance, which warrants further investigation. There- Hypothesis 2: The cross-level effect of resonant lead-
fore, we propose the following hypothesis: ership has a negative cross-level effect on the turnover
intention of Gen-Z employees during the COVID-19
Hypothesis 1: Resonant leadership has a positive cross- pandemic.
level effect on the work performance of Gen-Z employees
during the COVID-19 pandemic.
The mediating role of self‑efficacy
Resonant leadership and turnover intention Self-efficacy refers to an individual’s beliefs regarding their
among Gen‑Z capabilities to implement the measures required to manage
any situation. Previous studies have reported that self-effi-
The leadership style, operationalized in subjective norms, is cacy affects an individual’s learning ability, motivation, and
considered an antecedent to turnover intention (Eisenberger performance (Lunenburg, 2011).
et al., 2002; Sahu et al., 2018). The extant literature indi- The software sector is typically characterized by flexibil-
cates that Gen-Z employees tend to switch organizations if ity, adaptability, and mobility (Arunprasad, 2017). There-
their current leader does not prioritize individualized ori- fore, software industry leaders must provide an environment
entation (Chillakuri, 2020), flexibility, growth, job stability, that fosters continuous learning, technical competence, and
effective communication, and resources for training pro- autonomy (Ramakrishna & Potosky, 2003). This environ-
grams (Schroth, 2019). The unmet expectations of Gen-Z ment aligns well the dynamic nature of the industry (Scho-
employees compounded during COVID-19 (Jayathilake larios & Marks, 2004) which peaked during COVID-19
et al., 2021) because of the unprecedented changes experi- (Batra, 2020; Kniffin et al., 2020). Furthermore, it induces
enced by software sector employees during their transition a sense of control over tasks (Jayathilake et al., 2021) and
to remote work practices (Russo et al., 2021). Consequently, independence (Wickramasinghe & Weliwitigoda, 2011).
the inadequate resources and insecurities associated with the As a result, performance among Gen-Z employees in the
crisis created an unstable work environment for beginners, software sector intensifies (Jayathilake et al., 2021; Reddy
such as the Gen-Z cohort (Becker et al., 2020). Furthermore, & Dawlinmaria, 2020) while the turnover intention reduces
these inadequacies and insecurities can potentially destabilize (Porto Bellini et al., 2019).
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27348 Current Psychology (2023) 42:27344–27359
Resonant leaders with buoyant attitudes (Laschinger as India (Ngo et al., 2013), and among Gen-Z employees
et al., 2014; Marques, 2015) can manage complexities asso- (Chillakuri, 2020). Resonant leaders are considered to have
ciated with care and decipher employees’ needs, knowledge, high levels of mindfulness as they incorporate social capi-
goals, and capabilities (Goleman et al., 2013) by promot- tal into the organization’s intrapreneurship culture (Boyatzis
ing the democratization of learning (Cummings, 2004; Jay- & Mckee, 2005), which fosters a sense of belonging to an
athilake et al., 2021), especially among Gen-Z employees. organization. This cooperation aligns with the perceived idi-
Furthermore, resonant leaders prioritize their self-renewal osyncratic values of entrepreneurship (Twenge, 2017) and
and employee development (Boyatzis, 2014; Boyatzis & flexibility (Schroth, 2019) among Gen-Z employees, thus
Mckee, 2005) to navigate the crisis (Lenka & Tiwari, 2016). improving control over their performance (Ashforth et al.,
Thus, employee needs (Deepika & Chitranshi, 2021) and 2008; Jayathilake et al., 2021; Twenge, 2017) and software
self-efficacy increase among Gen-Z software professionals industry requirements (Jayathilake et al., 2021). Further-
(Evans & Karl, 2021). Consequently, higher performance more, Gen-Z is intolerant of crisis-related ambiguities and
(Arpita & Dawlinmaria, 2020; Gomes & Deuling, 2019) and complexities (Arpita & Dawlinmaria, 2020; Schroth, 2019)
lower turnover intention have been reported (Afzal et al., even though such attributes are inherent to the nature of the
2019; Cowden et al., 2011). software industry. Thus, it is assumed that resonant leaders
SET stipulates that leader who maintain continuous social can fulfill the Gen-Z employee expectations because of their
exchanges (i.e., coaching and mentoring) generate positive inherent flexibility (Marques, 2015) and attitude to guide and
outcomes for employee expectations (i.e., learning orienta- coach individuals during a crisis (Lenka & Tiwari, 2016),
tions; Blau, 1964; Lu & Gursoy, 2016; Schroth, 2019). Self- which enhances the willingness of Gen-Z to identify with
efficacy has been identified as a mediating variable in the the organization (Smith & Strawser, 2022). In the software
leadership process (Porto Bellini et al., 2019; Singh et al., industry, interpersonal leader–subordinate relationships
2018; Bayraktar & Jiménez, 2020). However, the literature enhance the perceived image and sense of belonging to an
underscoring its linkages with cross-level effects is limited organization (Mazumder et al., 2017). In this context, the
(i.e., resonant leadership → self-efficacy → work perfor- second part of organizational identification becomes cru-
mance and resonant leadership → self-efficacy → turnover cial because building interpersonal relationships and trust
intention). Thus, the following hypothesis is proposed: between the leader and the Gen-Z cohort (Lazanyi & Bilan,
2017) is vital to enhance the open expression of opinions.
Hypothesis 3: Self-efficacy mediates the relationship However, psychological factors worsened during COVID-19
between resonant leadership and work performance owing to remote work practices which increased stress and
among Gen-Z employees during the COVID-19 pan- anxiety among Gen-Z employees who are often susceptible
demic. to these emotions (Twenge, 2017; Becker et al., 2020). Pre-
Hypothesis 4: Self-efficacy mediates the relationship vious literature suggests that empathetic leaders (Jayathilake
between resonant leadership and turnover intention et al., 2021) and their in-person interactions (Ashforth, 2016;
among Gen-Z employees during the COVID-19 pan- He & Brown, 2013) can create interpersonal relationships
demic. and trust (Lazanyi & Bilan, 2017) with employees. Further-
more, it is envisaged that a resonant leader’s inherent abil-
ity to express empathy (Goleman et al., 2013) can promote
The mediating role of organizational positive emotions (Lenka & Tiwari, 2016) among the Gen-Z
identification cohort and invariably reduce distrust associated with a crisis
(Becker et al., 2020). Consequently, empathy can restore
Identity refers to an individual’s emotional association with Gen Z employees’ faith, trust, and a sense of attachment to
their organization, occupation, role, or work (Hogg & Terry, the organization (Mazumder et al., 2017).
2000). There are two ways through which an employee iden- In the context of SIT and SET (van Knippenberg &
tifies with the organization. The first is social identification, Schippers, 2007), it is argued that employees with a desire
wherein employees associate themselves with organizational to identify with the organization (Mazumder et al., 2021)
membership (Ashforth & Mael, 1989; Ashforth et al., 2008) work towards goals with higher efficiency and potential
based on the perceived distinct identity of the organization (Bakotic, 2016; Jiang & Law, 2013; Mazumder et al.,
resulting from the work environment and values of the 2021; Singh et al., 2018). Thus, through fulfilling their
leader. The second denotes psychological factors, such as entrepreneurial orientations based on the trust established
trust and interpersonal relationships within the organization, by the leaders, Gen-Z employees feel more obliged to stay
which may address affiliation needs. The study combined with the organization. Moreover, it can be argued from the
both identification methods to strengthen identification perspective of social exchange that resonant leaders who
with organizations in relationship-oriented societies, such treat Gen-Z employees with dignity, care, and empathy
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Current Psychology (2023) 42:27344–27359 27349
(Smith et al., 2011) can manage Gen-Z expectations. Hypothesis 7: Self-efficacy and organizational identifi-
Similarly, this evokes a desire among Gen-Z employees cation jointly mediate the relationship between resonant
to identify with the organization (Smith & Strawser, 2022), leadership and a) work performance and b) turnover
improves performance (Mazumder et al., 2021), and low- intention among Gen-Z employees during the COVID-
ers attrition (Suifan et al., 2020). However, research on the 19 pandemic.
Gen-Z cohort is limited, particularly studies that consider
resonant leadership as an antecedent at the team level and Figure 1 illustrates the conceptual model used in this
work performance and turnover intention as individual study.
outcomes. Although the outcomes of organizational identi-
fication, such as work performance and turnover intention, Methods
have been studied independently (Cole & Bruch, 2006;
Mazumder et al., 2021), their linkages with resonant lead-
ership have not been empirically confirmed in a single
study from a crisis perspective. Furthermore, previous Sample and procedures
studies have various limitations, such as multiple sources
of data collection as a lacuna (Mazumder et al., 2021). This study was conducted in 10 large-scale software compa-
Thus, we propose the following hypotheses: nies located globally that offer services ranging from digi-
tal services and information technology (IT) distribution to
Hypothesis 5: Organizational identification mediates the business solutions. These organizations were selected based
relationship between resonant leadership and work per- on the nature of the teams that typically engage in techno-
formance among Gen-Z employees during the COVID-19 logical research and development, process improvements,
pandemic. bug testing, and prototype design work. The teams regularly
Hypothesis 6: Organizational identification mediates the held virtual meetings to increase collaboration frequency
relationship between resonant leadership and turnover and worked on the project for at least 180 days. Furthermore,
intention among Gen-Z employees during the COVID- the research firm recruited for this study applied a purposive
19 pandemic. sampling technique to collect relevant data from the Gen-Z
cohort. Two anonymous security questions were asked to
Based on the complementary perspective of the SET obtain corresponding responses from the team leader and
and SIT, this study assumes that the cross-level effect of members. All participants were assured of data confidenti-
resonant leadership on work-related outcomes among Gen-Z ality to ensure honest responses. Prior to enrolment in the
employees occurs through two mediators—self-efficacy and study, the researchers obtained the informed consent of all
organizational identification. Accordingly, we propose the the participants. In total, 940 out of the 1,374 team members,
following hypotheses: managers, and leaders of the project development teams
Level 2
Level 1
Self-efficacy
Work
Performance
Organizational Turnover
Identification Intention
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27350 Current Psychology (2023) 42:27344–27359
voluntarily completed the online survey. Among the 940 they do so with intensity” and “When they work, they exert
surveys, 70 had incomplete responses and 30 represented themselves to the fullest.” Responses were measured on a scale
a different cohort. Consequently, the responses of 100 par- ranging from 1 (strongly dissatisfied) to 5 (strongly satisfied).
ticipants were excluded from the analysis. Moreover, some Self-efficacy was examined (α = 0.87) using a scale com-
of the responses were unmatched (i.e., leader–subordinate). prising 10 items measuring task-related self-beliefs used to
Thus, responses from 636 participants were included in the cope with various job demands (Parker, 1998). The sample
final analysis. The sample size of 636 Gen-Z individuals items on the scale included, “I feel confident enough to analyze
nested in 73 teams obtained from the survey adhered to the a long-term problem to find a solution to it.”
guidelines of Maas and Hox (2005). The data were collected Organizational identification was measured (α = 0.83)
in two phases over three months during the first wave of the using a six-item global scale developed by Edwards and Pec-
COVID-19 pandemic, starting in May 2020. Resonant lead- cei (2007). Sample items were scored on a scale ranging from
ership, self-efficacy, and organizational identification were 1 (strongly disagree) to 5 (strongly agree). The items included,
measured by the team members at time period T 1; work per- “I share the goals and values of the organization.”
formance and turnover intention were measured by the team The turnover intention was evaluated (α = 0.93) using a
leaders and team members, respectively, at time period T2. three-item scale developed by Yavas et al. (2003). The sam-
Several measures were implemented for procedural rem- ple item included “I will probably be looking for another job
edies. First, the matched responses (leader–subordinates) of soon.”
73 team leaders and 636 Gen-Z members were used to miti- Studies have reported that demographic variables exert a
gate concerns about receiving a socially desirable response confounding effect on hypothesized relationships in the leader-
(Podsakoff et al., 2003). Second, the order of the items in the ship processes (Becker et al., 2016). Furthermore, gender, age,
subordinate survey was counterbalanced against the inde- experience, marital status, educational level, and the respond-
pendent and dependent variables to alleviate the effects of ents’ position in the organization can considerably affect the
eventual response bias related to the survey design (Podsa- dependent variables, such as work performance (Bauer &
koff et al., 2003). Third, the data were collected from two Green, 1996; Maslyn & Uhl-Bien, 2001). Therefore, this study
different sources—team leaders and team members (team controlled for these variables while testing the hypotheses.
leader–team member dyad)—to mitigate the issue of com-
mon method bias. Data analysis
The average age of the leaders and members was 31.11
(standard deviation [SD] = 0.38) and 23.82 (SD = 0.76) The data were nested within the teams (i.e., 636 Gen-Z team
years, respectively. The average tenure of the leaders and members and 73 leaders), as per the hierarchical structure.
members was 7.11 (SD = 1.65) and 1.08 (SD = 0.61) years, Furthermore, the multilevel mediation effect was examined
respectively. Furthermore, approximately 52% of the partici- to estimate the cross-level indirect randomized effect (Bauer
pants were males while 48% were females. Moreover, 88.9% et al., 2006). Therefore, consistent with Zhang et al. (2009),
of the participants had a degree in electronics and telecom- multilevel modeling was performed using HLM 7.0 with
munications, and computer science whereas the remaining restricted maximum-likelihood estimation to conduct data
11.1% had a postgraduate degree in computer science. analysis for model 2–1-1 (independent variable at Level 2
and dependent variable at Level 1). For multilevel mod-
eling, it is necessary to examine the interrater reliability
Measures index rwg and intraclass coefficients ICC (1) and ICC (2) of
Level 2 variable resonant leadership. The obtained values
Resonant leadership was measured (α = 0.73) using the (rwg = 0.78, ICC (1) = 0.16, and ICC (2) = 0.83) were higher
10-item resonant leadership scale developed by Cummings than the threshold, thus confirming the aggregation test
et al. (2010). The sample items rated by subordinates were (Campion et al., 1993).
“My team leader focuses on successes and potentials rather
than failures” and “My team leader actively mentors and Results
manages individual and team performance.”
A similar approach was adopted to measure subordinates’
workplace performance (α = 0.91). Subordinates required more
time and energy to complete tasks as a result of the loom- Descriptive statistics
ing crisis (Bartsch et al., 2020). Thus, work performance
was examined using an established five-item scale (Brown & Table 1 summarizes the descriptive statistics and cor-
Leigh, 1996) of work intensity. Sample items for the leader relations between the study variables. At Level 1, we
version of the scale included “When my subordinates work, observed a positive association between organizational
13
Current Psychology (2023) 42:27344–27359 27351
Values on the right indicate Cronbach’s alpha coefficient; For level 1(team members) = 636, Level 2 (Team
leaders) = 73 *p < 0.05; **p < 0.01
13
27352 Current Psychology (2023) 42:27344–27359
Fixed effects 2.42(0.45)** 1.59(0.22)* 4.21(0.76)** 3.86(0.29)** 3.92 (0.29)* 3.32 (1.01)* 3.48 (1.21)**
Controls
Team Size -0.05* -0.08* -0.11*
Age (L) 0.03 0.02 0.02
Gender (L) 0.01 0.03 0.05
Position Tenure(L) -0.11 -0.11 -0.12
Level 1
Resonant Leadership 0.22(0.23)** 0.28(0.15)** 0.20(0.13) 0.19(0.17) 0.19 (0.12) 0.18(0.12) 0.17(0.11)
Self-Efficacy 0.40(0.07)** 0.42(0.03)** 0.44(0.03)**
Organizational Identification 0.23 (0.06)** 0.26(0.01)** 0.28(0.09)**
Level 2
Resonant Leadership 0.20(0.05)** 0.15(0.06)** 0.11(0.11)** 0.10(0.02) 0.06 (0.05) 0.13(0.10) 0.14(0.13)
Self-Efficacy 0.35(0.15) 0.21(0.09) 0.23(0.10)
Organizational Identification 0.22(0.03) 0.06(0.08) 0.08(0.10)
Level 1
Intercept 0.31(0.05) 0.29(1.21) 0.91(1.48) 0.91(1.60) 0.91(1.65) 0.91(1.67) 0.91(1.72)
Unstandardized estimates are reported with standard errors in parentheses. For Level 1(team members) = 636, Level 2 (team leaders) = 73;
Model 1: Self-efficacy predicted by resonant leadership. Model 2: Organizational identification predicted by resonant leadership. Model 3: Work
performance predicted by resonant leadership. Model 4: Self-efficacy mediates the relationship between resonant leadership and organizational
performance. Model 5. Organizational identification mediates the relationship between resonant leadership and organizational performance.
Model 6: Work performance predicted by resonant leadership, self-efficacy, and organizational identification (6a without/6b with control vari-
ables). *p < 0.05; **p < 0.01
Unstandardized estimates are reported with standard errors in parentheses. For Level 1(team members) = 636, Level 2 (team leaders) = 73.
Model 7: Turnover intention predicted by resonant leadership. Model 8: Self-efficacy mediates between resonant leadership and organizational
identification. Model 9. Organizational identification mediates the relationship between resonant leadership and turnover intentions. Model 10:
Turnover intention predicted by resonant leadership, self-efficacy, and organizational identification (10a without/10b with control variables)
*
p < 0.05; **p < 0.01
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Current Psychology (2023) 42:27344–27359 27353
(γ = -0.35, p = 0.32) were not significant, thus supporting the findings of this study concur, to some extent, with the
Hypotheses 1 and 2. results of the extant literature.
The multilevel mediation test was based on Zhang et al.’s
(2009) principle of introducing Level 2 predictors as Level
1 covariate, and vice versa. The proposed Level-1 media- Theoretical contributions
tors—self-efficacy and organizational identification—were
introduced while predicting work performance and turno- Considering the increasing composition of Gen-Z employees
ver intention from resonant leadership to test the proposed in the workplace and several other dynamics that impact
multilevel mediation. As shown in Table 2, Models 4 and 5 work outcomes, this study contributes to the existing litera-
revealed a significant cross-level mediation of self-efficacy ture on Gen-Z, resonant leadership, and the software indus-
(γ = 0.40, p < 0.01) and organizational identification on work try in the context of COVID-19. These contributions occur
performance (γ = 0.23, p < 0.01), as there was no direct effect through various mechanisms. First, the study was conducted
of resonant leadership on work performance. Furthermore, in the software industry to investigate the mechanism by
the indirect effect of resonant leadership on work perfor- which resonant leadership in a leader–employee dyad influ-
mance through self-efficacy and organizational identifica- ences the Gen-Z cohort’s work outcomes in the context of a
tion was confirmed using the Sobel test (z = 2.63, p < 0.01; crisis. Thus, it revealed the cross-level mechanism by which
z = 1.80, p < 0.01), which is consistent with Hypotheses 3 leadership influences employees’ work outcomes in a remote
and 5. Similarly, Models 8 and 9 exhibited a significant context (Gaan & Shin, 2022). Thus, this study has contrib-
cross-level mediation of self-efficacy (γ = − 0.12, p < 0.01) uted to the existing literature on Gen-Z, as it uncovers fac-
and organizational identification on turnover intention tors predicting the reduced nomadic behavior (Chillakuri &
(γ = − 0.09, p < 0.01) as no direct effect of resonant leader- Mahanandia, 2018) and poor performance (Jayathilake et al.,
ship on turnover intention was observed. 2021) of Gen-Z software professionals in the context of the
As shown in Table 3, the indirect effect of resonant lead- unprecedented crisis. The second mechanism revealed that
ership on turnover intention through self-efficacy and organi- the Gen-Z cohort’s reduced turnover intention and enhanced
zational identification was confirmed using the Sobel test performance are because of growing self-efficacy (Evans &
(z = − 3.40, p < 0.01; z = − 2.42, p < 0.01), thus supporting Karl, 2021) and organizational identification (Schroth, 2019;
Hypotheses 4 and 6. To assess the joint mediation effect of Smith & Strawser, 2022). Thus, resonant leadership serves
self-efficacy and organizational identification on the rela- as an independent variable of such outgrowth, emphasizing
tionship between resonant leadership and a) work perfor- its indirect effect on Gen-Z work outcomes. Although the
mance and b) turnover intentions, we adopted bias-corrected current findings concur with previous study results (Cowden
95% confidence intervals (CI) through bootstrapping (with et al., 2011; Mazumder et al., 2021; Walumbwa et al., 2011;
20,000 resamples). The bootstrapping results presented in Zhang & Chen, 2013), the integrated and cross-level effect
Table 3 suggest that Models 6a and 6b (indirect effect = 0.17, of resonant leadership on Gen-Z outcomes through self-effi-
95% CI [0.03, 0.35], excluding zero) as well as 10a and 10b cacy and organizational identification contributes to Gen-Z
(indirect effect = 0.05, 95% CI [− 0.03, 0.24]; excluding literature. The third mechanism provided a novel contribu-
zero) supported Hypothesis 7. tion to the existing literature on the Gen-Z cohort in the
context of the software industry; it revealed the significance
Discussion of self-efficacy and organizational identification as a joint
mechanism of mediators that influence the relationship
This study examined the multilevel mediation effect of between resonant leadership and work outcomes.
self-efficacy and organizational identification on resonant Thus, this study offers potential insights while integrating
leadership and Gen-Z employees’ remote work outcomes. the SET and SIT (van Knippenberg & Schippers, 2007) to
The results reveal the direct and indirect effects of resonant establish a linkage between the resonant leader and Gen-Z
leadership on work performance and turnover intention employees’ work outcomes. Furthermore, it validates how
(Gaan & Shin, 2022; Sahu et al., 2018; Squires et al., 2010; resonant leaders exchange resources to build psychologi-
Wagner et al., 2013). Furthermore, the findings indicated cal factors, such as self-efficacy and organizational iden-
that self-efficacy (Bayraktar & Jiménez, 2020; Jayathilake tification among the Gen-Z cohort during a crisis. In turn,
et al., 2021; Reddy & Dawlinmaria, 2020; Singh et al., 2018) employees reciprocated with enhanced performance and
and organizational identification (Chillakuri & Mahanandia, reduced withdrawal behavior. Thus, this study extends the
2018; Mazumder et al., 2021; Shen et al., 2014; Walumbwa complementary nature of the social exchange and identity
et al., 2011) mediated the leadership process significantly theories, and widens the theoretical perspectives of Gen-Z
and positively (Afzal et al., 2019; Suifan et al., 2020). Thus, literature.
13
27354 Current Psychology (2023) 42:27344–27359
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Current Psychology (2023) 42:27344–27359 27355
Gen-Z employees at the workplace while articulating suc- Barhate, B., & Dirani, K. M. (2022). Career aspirations of genera-
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the organization. 10.1108/EJTD-07-2020-0124
Bartsch, S., Weber, E., Büttgen, M., & Huber, A. (2020). Leadership
matters in crisis-induced digital transformation: How to lead
Funding The authors received no financial support for the research, service employees effectively during the COVID-19 pandemic.
authorship, and/or publication of this article. Journal of Service Management, 32(1), 71–85. https://doi.org/
10.1108/JOSM-05-2020-0160
Data availability Datasets generated during and/or analysed during the Batra, D. (2020). The impact of the COVID-19 on organizational and
current study are not publicly available due to the nondisclosure bond information systems agility. Information Systems Management,
signed by the corresponding author with the research firm. 37(4), 361–365. https://d oi.o rg/1 0.1 080/1 05805 30.2 020.1 82184 3
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