Impact of Flexible Work Arrangements on Employee Retention: the Mediating Role of Digital Leadership

Digital leadership mediates the effect of flexible work arrangements (FWAs) on employee retention in modern companies. FWAs are essential to job satisfaction and talent retention as remote work, flexible hours, and hybrid models grow more common. Digital leadership is essential to managing virtual teams, guaranteeing good communication, and encouraging technology to transcend physical distance. Digital leadership promotes innovation by encouraging teamwork, digital tool usage, and a flexible culture. To determine how FWAs directly and indirectly affect retention, this study examines the relationships between key organisational variables, digital leadership, digital culture, organisational learning, innovation, and employee performance using secondary research and structural equation modelling (SEM). The data show that FWAs can improve retention, but only with strong digital leadership. Proactive digital transformation leaders boost employee engagement, performance, and learning and creativity. Innovation enhances the impact of digital leadership on retention by encouraging creativity and adaptability among employees, according to the research. This study emphasises the necessity for innovative, tech-savvy leadership to preserve a competitive edge and an engaged staff when implementing FWAs.