The effect of servant leadership on employee turnover in SMEs: the role of career growth potential and employee voice

The poor contributions of SMEs in Nigeria have been a source of concern to government, researchers and the SMEs themselves. Studies have established that high employee turnover is a major cause of the abysmal performance of SMEs. Hence, the study explored the role of servant leadership and the work climate created by the servant leaders in the reduction of employee turnover in SMEs. The study involved 1,000 participants drawn from 200 SMEs in the City of Lagos. Cross-sectional data was acquired through questionnaire designed in such a way as to minimise common method variance. Results indicate that servant leadership reduced employee turnover, and that employee voice and the career growth dimensions partially mediated this relationship. The study variables explained 59% of the variance in employee turnover. The paper highlights that SME leaders who adopt servant leadership behaviour can reduce employee turnover directly and through the positive work environment they create.