Beyond the Counter: Exploring the Impact of Leadership Styles on Employee Retention Among Fast-Food Service Crews at McDonald’s Branches in Metro Manila

Abstract

The fast-food industry faces high turnover rates, requiring effective leadership to enhance employee retention. This study investigates the relationship between leadership styles and employee retention among service crew members at McDonald's branches in Metro Manila, addressing the research gap on leadership and retention in the Philippine fast-food sector. Grounded in Bass and Avolio's (1994) Full Range Leadership Theory and Meyer and Allen's (1991) Three-Component Model of Organizational Commitment, it explores how transformational, transactional, and laissez-faire leadership styles influence employee retention intention (ERI). Using a quantitative correlational design, the study surveyed 51 managers and 120 service crew members with a five-point Likert scale, analyzing data through descriptive and correlational statistics. Findings indicate managers predominantly adopt transactional leadership, while crew members favor transformational leadership. Correlations suggest that strong preferences for the three leadership styles, especially transformational, are associated with lower ERI. Affective commitment emerged as the strongest driver of retention. These results underscore the importance of aligning leadership approaches with the expectations of the collectivist Filipino workforce to reduce turnover. The findings offer actionable insights for leadership development and employee retention strategies in the fast-food industry.