The Effect of Transformational Leadership on Work Performance, Working Burnout , And Social Loafing in Jakarta’s Retail Industry Employees

Retail refers to the process of selling a limited range of products to consumers. In Indonesia, numerous large companies are engaged in the competitive retail business model, leading to a notable increase in the contribution of the wholesale and retail trading sector to the national economy throughout 2021. This sector specifically accounted for 12.97% of the country’s economic activity. Enhancing performance within the retail industry necessitates a keen focus on human resources. These individuals are responsible for designing and manufacturing goods and services, overseeing quality control, promoting products, managing financial resources, and devising organizational strategies and goals. By effectively developing and overseeing human resources, the retail sector can attain significant competitive advantages. Employing an appropriate leadership style can boost the motivation of human resources, consequently enhancing their productivity while mitigating factors that could impede performance. Thus, this research aims to explore the impact of Transformational Leadership on Work Performance, Working Burnout, and Social Loafing, with intrinsic Motivation serving as a mediating factor, among employees in Jakarta’s retail industry.

The study on reducing burnout and social loafing contributes to this target. By identifying factors that lead to employee dissatisfaction and disengagement, the research paves the way for creating safer and more secure work environments. This is particularly important for potentially vulnerable groups like young people and migrant workers. A motivated and productive retail workforce with higher disposable income could lead to increased consumer spending, ultimately driving demand for manufactured goods sold in stores.

Keywords: SDG 8 (decent job),  SDG  9(industrial growth)