Exploring the impact of toxic leadership on employee turnover intention and performance in the South African corporate business environment

Abstract

Toxic leadership has become a significant concern in corporate environments, adversely affecting employee outcomes and welfare. It can negatively impact employee performance and turnover, leading to substantial financial losses related to recruitment, training, and talent attrition. Toxic leadership undermines a positive corporate culture, fostering an atmosphere of low morale and diminished productivity, adversely affecting overall performance. Despite the increasing prevalence of toxic leadership in corporate settings, limited research exists on its impact in South Africa. The primary objective of this study was to investigate the relationship between toxic leadership behaviours that influence employee performance and intentions to quit in a South African corporate environment. Furthermore, the study aimed to determine how task and contextual performance mediate the relationship between toxic leadership and the outcome of employees' intentions to leave the organisation. In addition, a moderation analysis was conducted to explore potential factors that influence the strength of the relationships among toxic leadership, performance, and intention to quit. A quantitative research methodology employing a cross-sectional survey design, supported by the positivism paradigm, was applied. Data were gathered from 146 respondents, sampled using a non-probability convenience sampling method, out of a population of 2 500 employees in a single organisation. Given the study's reliance on an electronic questionnaire, access to email was a critical criterion for participation. Of the 2,500 employees, only 310 had access to email, and the questionnaires were distributed to this subset of the population. Standardised questionnaires assessed aspects of toxic leadership, task- and contextual performance, and intention to resign. Statistical analysis was conducted using Jamovi software and included exploratory factor analysis, which validated the unifactorial structure of the scales, while reliability analysis demonstrated strong internal consistency. Correlation, regression, mediation, and moderation analyses were conducted to investigate the relationships among the variables, with a significance level of p < 0.05. The results revealed that toxic leadership behaviours are moderately prevalent within the organisation. There is a significant negative relationship between toxic leadership and employee performance and a significant positive relationship between toxic leadership and intention to quit. However, no direct relationship was found between performance and intention to quit. This study contributes to the literature by providing empirical evidence of the prevalence of toxic leadership and its impact on employee performance and turnover intention. It underscores the importance of addressing toxic leadership behaviours to enhance employee well-being and organisational effectiveness. The managerial implications highlight the need for leadership development programmes and organisational interventions to reduce toxic behaviours and foster a positive work environment.