Effect of transactional and transformational leadership on talent engagement: Mediating role of talent development

Leadership is an essential antecedent to talent development and engagement, but there is a dearth of literature related to transactional or transformational leadership and talent management (TM). The paper investigates the impact of transactional and transformational leadership on talent engagement and the mediating role of talent development between them. Based on a cross-sectional survey of 450 employees, the study employs structural equation modeling using social exchange theory as a lens to test the hypothesized relationship among transactional leadership, transformational leadership, talent development and engagement. The results confirmed that transactional leadership is positively related to talent engagement and development while transformational leadership is neither associated with talent engagement nor talent development. Moreover, talent development mediates the relationship between transactional leadership and talent engagement. The study outcomes are helpful to managers and leaders in comprehending the significance of transactional leadership in developing and engaging talents.