THE EFFECT OF LEADERSHIP STYLES ON EMPLOYEE RETENTION IN DEPOSIT MONEY IN UNION BANK MAIDUGURI BRANCH

Abstract This study examined the effect of leadership styles on employee retention at the Union Bank, Maiduguri Branch. The primary objectives were to identify the predominant management styles practiced, evaluate the current state of employee retention, and analyze the relationship between specific leadership styles and employees' intention to remain with the bank. A quantitative research design was employed, using a cross-sectional survey method. Data were collected through structured questionnaires from 71 out of 85 permanent staff, achieving an 89.9% response rate. The Multifactor Leadership Questionnaire (MLQ) and established retention scales were adapted for measurement, and data were analyzed using descriptive and inferential statistics, including linear regression and ANOVA, with SPSS version 26. The findings revealed that transformational leadership was the most predominant style, followed by democratic leadership, while autocratic and laissez-faire styles were less common. Employee retention levels were high overall, characterized by strong organizational commitment, high job satisfaction, and low turnover intention. Statistical analysis confirmed a significant positive relationship between leadership styles and employee retention, with management style explaining 53.9% of the variance in retention outcomes. Managerial factors such as communication, recognition, and support were also found to significantly enhance organizational commitment. The study concludes that leadership style is a critical determinant of employee retention in the branch, with transformational and democratic approaches fostering a supportive work environment that strengthens loyalty and reduces attrition. The findings validate Social Exchange Theory, demonstrating that positive leadership behaviors are reciprocated with employee commitment, even in the challenging socio-economic context of Maiduguri. Recommendations include institutionalizing leadership development programs, enhancing recognition systems, and integrating leadership assessments into performance appraisals to sustain retention. This research contributes to both theoretical understanding and practical human resource strategies in Nigeria's banking sector, particularly in regions facing unique socio-economic challenges.