Organizational Psychology

Purpose. Based on social exchange theory, this study aims to test the contribution of ethical leadership in employee turnover intention through the mediating roles of job satisfaction and work-life balance. Methodology. A total of 110 employees who work at the private hospital in Indonesia are registered as the research respondents. The proposed model was examined using structural equation modeling with Smart PLS 3.2 software. Findings. The empirical evidence showed that ethical leadershiphas a positive relationship with job satisfaction and work-life balance, as well as negatively relationship with employee turnover intention. Further, this study also revealed that work-life balance is positively  related to employee turnover intention. In addition, the results from two mediation analyses found that work-life balance positively mediates the contribution of ethical leadership in employee turnover intention, whereas job satisfaction has no mediating effect. Value of the results. In the framework of social exchange theory, ethical leadership plays a pivotal role in shaping the dynamics of employee turnover intention within organizations, particularly through its contribution in work-life balance. Ethical leaders prioritize employees’ work-life balance, recognizing the importance of harmonizing professional responsibilities with personal well-being. By implementing policies and practices that support flexibility, ethical leaders mitigate the strain of work-related stressors, thereby enhancing employees’ overall quality of life and reducing the likelihood of turnover.