Influence of Leadership Communication on Employee Retention in the Age of AI

This study investigates the influence of leadership communication on employee retention intention, with employee engagement serving as a mediating factor, in contemporary organisational settings. Drawing on a sample of 303 employees from diverse industries, data were collected using a structured questionnaire measured on a seven-point Likert scale. The study employs Structural Equation Modeling (SEM) via SmartPLS 4.0 to examine the hypothesised relationships among leadership communication, employee engagement, and retention intention. The findings reveal that leadership communication has a strong positive effect on employee engagement (β = 0.771), which in turn significantly enhances employee retention intention (β = 0.378). The direct effect of leadership communication on retention intention is positive but comparatively weaker (β = 0.210), indicating that employee engagement partially mediates this relationship. Reliability and validity analyses confirm the robustness of the measurement model, and model fit indices (SRMR = 0.075, NFI = 0.841) support the adequacy of the structural model. The results underscore the importance of clear, transparent, and responsive communication by leaders in fostering engagement and reducing voluntary attrition. Practical implications include training leaders in effective communication, implementing engagement-focused initiatives, and leveraging AI-enabled communication tools to enhance interaction quality and retention outcomes.