A strong leadership style matters more than many realize. It shapes how people feel at work, whether they stay, and whether they trust their leaders. Among the various approaches, transformational leadership has shown the strongest link to lower turnover, thanks to its focus on trust, support, and growth. In this piece, we’ll explore which leadership style tends to cut turnover the most, drawing on what recent research shows, how different approaches compare, and what practical steps organizations like Refered can use to keep teams intact.
1. Transformational Leadership and Employee Retention
Transformational leadership emphasizes vision, inspiring commitment, and caring for individual growth. This leadership style helps employees feel more than just a cog in the machine. They see purpose in what they do. Studies of nurses and healthcare workers show transformational leadership reduces turnover intention significantly. At Refered, we believe that when leaders take time to understand personal aspirations and support development, employees feel more loyal. That lowers turnover, because people stay where they believe their efforts and growth are recognized.
2. Transactional Leadership: Clear Rewards, But Limited Reach
Transactional leadership is based on exchanges: meet targets, get rewards; fall short, face consequences. In many settings, this leadership style delivers predictable structure and clarity, which can help retention to some extent.
Still, research shows that while transactional strategies can reduce turnover compared to laissez-faire or autocratic styles, they usually don’t match the retention benefits of more relational or inspirational leadership. At Refered, we’ve seen employees respond better when leadership goes beyond just rules and rewards.
3. Laissez-faire Leadership and Turnover Risk
A laissez-faire leadership style gives employees a lot of autonomy, often to the extent that leaders avoid making decisions. In some cases that works if the team is experienced and self-directed. But often it leads to ambiguity, lowered engagement, and higher turnover.
Refered has observed that when leaders are absent or inactive, people feel unsupported. That gap pushes them to look elsewhere. To reduce turnover, leaders need to balance autonomy with regular check‑ins and guidance.
4. Authentic Leadership and Lower Turnover Intentions
Authentic leadership means being genuine, consistent, transparent, and ethical. Leaders who show their real selves, admit mistakes, listen, and act fairly create trust. That leadership style has been linked in recent studies with lower turnover intentions among employees, especially when paired with strong organizational support.
At Refered, fostering authenticity in leadership earns trust. When people trust their leaders, they feel safer, less stressed, more committed. That reduces thoughts of leaving.
5. Participative Leadership and Team Engagement
When leaders involve team members in decision‑making, seek their input, and share responsibility, that participative leadership approach boosts a sense of ownership. Employees feel valued and more connected. This style of leadership style often correlates with lower turnover because people believe their voice matters.
Refered has found that teams with this approach report higher satisfaction, better morale, and tend to stay longer. Engaged employees stay because they feel seen and heard.
6. Situational Leadership: Matching Style to Need Improves Stability
Situational Leadership means adapting how you lead depending on the task, person, or situation. No single style works for everything. A leader shifts between more directive and more collaborative behaviors as needed. This leadership style helps reduce turnover because employees don’t feel forced into a mismatch of expectations.
Refered supports leadership training that builds this adaptability. When leaders read situations well and adjust, people are less frustrated or burned out, which reduces their desire to leave.
Across many studies, leadership style that center on relationship, authenticity, shared decision‑making, and adaptability tend to lower turnover the most. Styles that lean too heavily on control, detachment, or rigidity often push people away. At Refered, we encourage leaders to reflect on how they communicate, how they support, and how they adapt.
If you’d like advice or examples specific to your organization’s circumstances, or have questions about applying a particular leadership style, contact Refered today.
