Determinants of talent retention in Mexico: leadership, climate and happiness management

• 115 • Anduli Revista Andaluza de Ciencias Sociales ISSN: 1696-0270 • e-ISSN: 2340-4973 DETERMINANTS OF TALENT RETENTION IN MEXICO: LEADERSHIP, CLIMATE AND HAPPINESS MANAGEMENT DETERMINANTES DE LA RETENCIÓN DEL TALENTO EN MÉXICO: LIDERAZGO, CLIMA Y GESTIÓN DE LA FELICIDAD Mario Alberto Salazar-Altamirano Autonomous University of Tamaulipas, Mexico [email protected] https://orcid.org/0009-0005-7110-3378 Orlando Josué Martínez-Arvizu Autonomous University of Tamaulipas, Mexico [email protected] https://orcid.org/0000-0003-3499-5184 Esthela Galván-Vela CETYS University, Tijuana Campus, Baja California, Mexico [email protected] https://orcid.org/0000-0002-8778-3989 Rafael Ravina-Ripoll University of Cádiz, Spain [email protected] https://orcid.org/0000-0001-7007-3123 Abstract Understanding what organisational factors most influence staff turnover remains a challenge in human talent management. This study addresses this issue by examining how transformational leadership, work climate, and happiness management interact to explain turnover intention. A sample of 414 workers from various industries in Mexico was surveyed, and data were analysed using structural equation modelling. The findings show that transformational leadership significantly influences work climate and happiness management. However, as expected given the mediating structure of the model, there is no direct effect between transformational leadership and turnover intention. Instead, work climate and happiness management act as mediators, with happiness management playing a direct and significant role in reducing turnover intention. These results reveal complex interdependencies and underscore the importance of promoting leadership styles and organisational strategies that strengthen happiness management to enhance talent retention and organizational sustainability. Keywords: Happiness management; Mexican employees; organisational sustainability; talent retention; transformational leadership; turnover intention; work climate. Resumen Comprender qué factores organizacionales influyen con mayor fuerza en la intención de rotación del personal sigue siendo un desafío en la gestión del talento humano. Este estudio aborda esta cuestión analizando cómo el liderazgo transformacional, el clima laboral y la gestión de la felicidad interactúan para explicar la intención de rotación. Se encuestó a una muestra de 414 trabajadores de diversas industrias en México y los datos fueron analizados mediante modelado de ecuaciones estructurales. Los resultados muestran que el liderazgo transformacional influye significativamente en el clima laboral y la gestión de la felicidad. Sin embargo, como era de esperarse dada la estructura mediadora del modelo, no se encontró un efecto directo entre el liderazgo transformacional y la intención de rotación. En cambio, el clima laboral y la gestión de la felicidad actúan como variables mediadoras, siendo esta última un factor directo y significativo para reducir la intención de rotación. Estos resultados revelan interacciones complejas y subrayan la importancia de promover estilos de liderazgo y estrategias organizacionales que fortalezcan la gestión de la felicidad para mejorar la retención de talento y la sostenibilidad organizacional. Palabras clave: Gestión de la felicidad; empleados mexicanos; sostenibilidad organizacional; retención de talento; liderazgo transformacional; intención de rotación; clima laboral. Citation/ Cómo citar este artículo: Salazar-Altamirano, Mario-Alberto; Martínez-Arvizu, Orlando-Josué; GalvánVela, Esthela; Ravina-Ripoll, Rafael (2025). Determinants of talent retention in Mexico: leadership, climate and happiness management. ANDULI 28 (2025) pp.115-145, https://doi.org//10.12795/anduli.2025.i28.05 Recibido 18.02.2025 Revisado 2.04.2025 Aprobado: 10.05.2025 Anduli • Revista Andaluza de Ciencias Sociales Nº 28 - 2025 • 116 • 1. INTRODUCTION In any organisation, the core that enables its daily functioning is composed of people and the interactions they maintain with one another (Magistretti et al., 2021). Beyond business objectives and defined processes, workplaces can be understood as complex ecosystems where factors such as leadership, work climate, and subjective experiences, such as Happiness Management, are deeply interconnected (CuestaValiño et al., 2023; Majumder & Dey, 2023). These dynamics have a direct impact on employee behaviours, particularly on turnover intention, understood as the employee’s conscious and deliberate intention to leave the organisation (Sarwar et al., 2020). Therefore, understanding how these elements interact should not be overlooked in a context where organisations strive to adapt to current demands (Cosa, 2023). In this regard, a relevant perspective emerges creating sustainable work environments, which aligns with the Sustainable Development Goals (SDGs), particularly SDG 8, which promotes fair workplaces focused on wellbeing (Bukulmez et al., 2024; Mercader et al., 2025). Here, leadership plays a key role, as its styles and practices directly affect the work climate (Ramachandran et al., 2023). At the same time, a positive work climate can mediate employees’ Happiness Management (MartínezArvizu et al., 2025). This component directly influences their intention to stay in the organisation or seek new opportunities (Javanmardnejad et al., 2021). Authors such as Salas-Vallina et al. (2020) point out that the interaction between these organisational factors and turnover intention remains underexplored, especially in emerging market contexts marked by digital transformation, such as those influenced by Industry 4.0 (Jiménez-Marín et al., 2021). From a psychological perspective, Happiness Management is deeply rooted in theories such as self-determination and subjective wellbeing (Fabian, 2022; Núñez-Regueiro et al., 2024). These theories emphasise the importance of satisfying basic needs, such as achievement, belonging, and autonomy, to build a positive organisational environment (Bhatnagar, 2023; Ryan & Deci, 2000). However, one important aspect to consider is that the literature analyses these elements in isolation, leaving room to explore how leadership, work climate, and Happiness Management interact with turnover intention (Romão et al., 2022). Another issue arises: in emerging countries such as Mexico, studies on these dynamics remain scarce (Salazar-Altamirano et al., 2024a). In these contexts, organisations face unique challenges, ranging from cultural to economic and structural factors, which, in turn, influence workplace relationships and employees’ perceptions of their environment (Galván-Vela et al., 2023). A recent scoping search in the Scopus database, using combined keywords such as ‘transformational leadership’, ‘happiness management’, ‘work climate’, and ‘turnover intention’ in the Mexican context, identified only three studies that partially address these constructs (Galván-Vela et al., 2023; Galván-Vela et al., 2024; Salazar-Altamirano et al., 2024b). No comprehensive research was found that simultaneously examines the mediating role of happiness management and work climate in the relationship between transformational leadership and turnover intention. This clear gap in the literature reinforces the need to contribute new empirical evidence that reflects the realities of the Mexican organisational landscape. It is important to distinguish between influence and mediation in this context. ‘Influence’ refers to a direct effect a variable may have such as leadership enhancing retention, while a ‘mediating role’ implies that the effect occurs through another variable, such as Artículos • Mario Alberto Salazar-Altamirano, Orlando Josué Martínez-Arvizu, Esthela Galván-Vela, Rafael Ravina-Ripoll • 117 • leadership improving happiness, which in turn reduces turnover intention. Exploring these layered relationships could provide concrete solutions to improve leadership practices and organisational policies (Ravina-Ripoll et al., 2023). Therefore, this study explores how transformational leadership, work climate, and Happiness Management influence turnover intention, with particular attention to the mediating effects of work climate and happiness management. The study is applied to the Mexican context and is based on a survey conducted among industrial sector workers. This study seeks to contribute at two levels: academically, by enriching the existing literature, and practically, by offering valuable recommendations for designing more effective and human-centred organisational policies. Accordingly, this research seeks to answer the following question: How do transformational leadership, work climate, and happiness management influence turnover intention among employees in Mexico, and what mediating roles do work climate and happiness management play in these relationships? To achieve this, the article is structured into four sections: first, the theoretical framework is presented; second, the methodology is detailed; third, the results are analysed; and finally, the implications and applications of the study are discussed. 2. LITERATURE REVIEW This chapter outlines the theoretical framework supporting the proposed model. It is structured around four key constructs: turnover intention, transformational leadership, work climate, and happiness management. Each subsection examines the origin, development, and relevance of these concepts, forming the basis for the study’s hypotheses. 2.1. Turnover intention The study of turnover intention originates from organisational psychology and human resource management literature, where it has been explored since the 1970s as a key predictor of employee voluntary departure (Mobley, 1977). Early models positioned turnover intention as the most immediate antecedent of actual turnover behaviour, linking it to job satisfaction, organisational commitment, and alternative job opportunities (Price, 1977). Over time, this concept has evolved to incorporate broader motivational, attitudinal, and demographic factors across diverse cultural and organisational contexts. Turnover intention, also referred to as the predisposition to leave one’s current job, has been widely debated in organisational literature in recent years (Iqbal et al., 2022). Its relevance lies in its role as a predictor of actual turnover behaviour (Galván-Vela et al., 2022; Srivastava & Agrawal, 2020) and the growing wave of job resignations in the post-pandemic period, a phenomenon known as “The Great Resignation”. This trend originates from employees’ reassessment of their expectations regarding quality of life, wellbeing, and workplace satisfaction (Ravina-Ripoll et al., 2024b). The turnover intention has been linked to generational, attitudinal, and motivational factors and analysed across different contexts and cultures (Park & Min, 2020). It has thus become a key component in understanding human talent dynamics within organisations (Alhajaj & Ahmad, 2023). Bolt et al. (2022) noted that theories such as resource conservation and self-determination have been used as theoretical frameworks to explain the causes and effects of turnover intention, demonstrating Anduli • Revista Andaluza de Ciencias Sociales Nº 28 - 2025 • 118 • how individual and organisational factors influence employees’ decisions to remain or seek new opportunities. Studying turnover intention has gained importance due to the high competitiveness of the job market and constant changes in the labour environment (Pereira et al., 2021). Additionally, Ravina-Ripoll et al. (2024b) highlight the issue of globalised companies potentially becoming toxic, stressful, and conflict-ridden environments, which worsens when leadership styles focus on individual success. As a result, turnover intention has become a critical topic for researchers aiming to understand why employees decide to leave. According to Rudolph et al. (2021), the COVID-19 pandemic accelerated workplace dynamics, forcing organisations to increase efforts to retain talent. Recent research, such as that by Kaur and Kaur (2023), suggests that factors like leadership, work climate, and Happiness Management could be key to managing turnover intention. However, the nature of these relationships remains a topic of debate. From an organisational perspective, understanding turnover intention helps reduce the costs associated with employee departures and facilitates the implementation of more effective strategies tailored to workers’ needs (Scott et al., 2020). Transformational leadership is defined as a style that inspires and motivates employees by articulating a compelling vision, fostering intellectual stimulation, demonstrating individual consideration, and serving as a role model (Bass & Riggio, 2006). It seeks to transform followers’ attitudes and behaviours beyond self-interest, aligning them with organisational goals. However, research on its relationship with turnover intention has yielded mixed results. Rajput and Kumari (2023), studying 1,200 employees in Chinese tech firms, found it significantly reduced turnover intention by enhancing organisational commitment and happiness management. Similarly, Gao et al. (2020) argue that this leadership style fosters trust and a sense of purpose. In contrast, Park and Pierce (2020), in a U.S. study with 214 employees, found no direct effect, attributing greater influence on economic and demographic factors. Work climate, typically understood as employees’ shared perceptions of organisational practices, interpersonal relationships, communication, trust, and fairness (Cheema et al., 2019), also influences turnover intention, though study results are inconsistent. Meng and Valenciae (2024) analysed 500 banking sector employees in Turkey and found that a positive work climate significantly decreases turnover intention. However, Suryani et al. (2024), in their study of employees from the plastic distribution sector in Brazil, observed that while a positive work climate has some beneficial impact, it does not fully counteract external factors such as the appeal of higher salaries in the labour market, thereby reducing its effect on turnover intention. Finally, the relationship between Happiness Management and turnover intention has also been researched. In South Korea, Hwang et al. (2022), in a study involving 216 nurses from a university hospital, concluded that Happiness Management significantly reduces turnover intention, mainly through the emotional commitment fostered by an enriching work environment. However, Smokrović et al. (2022), in their analysis of 400 nurses in Canada, found no statistically significant effect in settings characterised by high workload and elevated stress levels. These findings highlight the need to consider multiple factors when analysing turnover intention. 2.2. Transformational leadership Transformational leadership, proposed by Bass (1985), is defined as the ability of leaders to inspire and motivate their teams, fostering both personal and professional Artículos • Mario Alberto Salazar-Altamirano, Orlando Josué Martínez-Arvizu, Esthela Galván-Vela, Rafael Ravina-Ripoll • 119 • development through a shared vision. This leadership style, focused on dimensions such as charisma, intellectual stimulation, and individualised consideration, promotes high levels of commitment and enhances organisational performance (Bass & Riggio, 2006; Saad, 2021). Due to its positive impact on work climate and Happiness, Management has become essential for organisational success, particularly in dynamic and competitive environments (Knezović & Drkić, 2020). The study of transformational leadership has gained interest due to the global challenges organisations face. Incorporating technologies such as artificial intelligence, globalisation, and the increasing diversity in work teams require leaders capable of adapting and driving meaningful change (Yang et al., 2024). In this context, Farahnak et al. (2019) highlight that transformational leaders can shape attitudes and behaviours within teams, influencing organisational dynamics such as work climate and Happiness Management. These interactions are fundamental for developing strategies that strengthen organisational performance and reduce issues such as employee turnover (Cho & Kao, 2022). Various empirical studies have supported the relationship between transformational leadership and work climate. Mañas-Rodríguez et al. (2020), in an analysis conducted in Colombia with 319 employees from the service sector, demonstrated that this leadership style positively influences organisational commitment by improving the work climate. The findings indicated that a cohesive and productive work environment, driven by transformational leadership, increases employees’ commitment levels and enhances their overall wellbeing. In contrast, Setiadi et al. (2020), in a study with 170 retail sector workers in Indonesia, found that although this leadership style helps improve the work climate, its impact on team morale and performance may be limited if other contextual factors, such as prior leadership culture, job insecurity, or lack of resources, are not addressed. Regarding Happiness Management, Kim and Park (2020) conducted a study with 282 employees from companies in South Korea. Their results showed that transformational leadership directly affects organisational climate and knowledge-sharing behaviour, fostering organisational learning and promoting employee wellbeing as part of a structured Happiness Management strategy. However, Khalili (2016), in research involving 1,172 banking sector employees in Iran, noted that while transformational leadership encourages creativity and innovation, its influence on Happiness Management is limited. It occurs mainly when no supportive organisational climate enhances these behaviours and prioritises structured wellbeing strategies within the company. 2.3. Work Climate The concept of work climate, or organisational climate, has its origins in the field of organisational behaviour and was first systematised in the 1960s by scholars such as Argyris (1964) and Litwin & Stringer (1968). These foundational studies viewed climate as the shared perception of organisational policies, practices, and procedures that influence behaviour. The construct has since been refined to include elements such as trust, fairness, leadership style, and interpersonal relationships, becoming a central focus for understanding employee motivation and group dynamics. Work climate, or organisational climate and work environment, refers to employees’ shared perception of the work environment and the characteristics that influence their behaviour and attitudes (Cheema et al., 2019). This concept encompasses dimensions such as the quality of interpersonal relationships, perceived fairness, Anduli • Revista Andaluza de Ciencias Sociales Nº 28 - 2025 • 120 • leadership support, and opportunities for professional development (Hessari et al., 2024). These variables are fundamental to employee wellbeing and organisational success (Subramaniam et al., 2024). According to the social systems theory proposed by Katz and Kahn, organisational climate directly impacts motivation and productivity, creating an environment that can either enhance or hinder collective performance (Adinew, 2023; Hackman et al., 1979). The study of work climate has recently gained increasing importance due to the challenges organisations currently face. The rapid advancement of technology and an increasingly competitive business environment have positioned it as a strategic factor (Barba-Aragón et al., 2023). Alzghoul et al. (2023) state that a positive work climate supports talent retention, boosts Happiness Management, and promotes innovation. From an academic perspective, analysing organisational climate helps understand aspects such as Happiness Management, contributing to developing more comprehensive theories applicable to different sectors and cultures (EspasandínBustelo et al., 2020). From an empirical standpoint, recent studies have supported the importance of work climate. Sanamthong and Prabyai (2023), in a study involving 400 employees in Thailand, identified work climate as a key factor in Happiness Management, with an influence coefficient of 0.92. Additionally, their results showed that work climate and structured Happiness Management initiatives explain up to 89% of organisational commitment. It highlights how a positive environment can contribute to employee wellbeing and talent retention. Meanwhile, a study conducted in South Korea by Jeong et al. (2022) with a sample of 336 workers found that the effect of work climate on Happiness Management is not uniform. While their findings confirmed a positive impact, they also indicated that this relationship largely depends on aligning values between leaders and employees. 2.4. Happiness management The origin of happiness management as a field of study can be traced back to the emergence of positive psychology, particularly from the late 1990s, with key contributions from authors such as Seligman (2001) and Diener (2000). This research tradition shifted focus towards the promotion of wellbeing and the conditions that foster happiness in various life domains, including the workplace. Within organisational studies, happiness management has evolved as a framework to structure policies and practices aimed at enhancing employee wellbeing and satisfaction (SalazarAltamirano et al., 2025). Happiness Management, also known as workplace happiness strategies, is widely studied in the organisational field (Ravina-Ripoll et al., 2024a). It is the set of practices and strategies to foster employees’ subjective wellbeing within their work environment (Fisher, 2010). This concept encompasses various dimensions, such as the presence of positive emotions, task satisfaction, organisational commitment, and the perception of purpose or meaning in the activities performed (Fitriana et al., 2022; Salas-Vallina & Alegre, 2018). From the perspective of Seligman’s PERMA model, Happiness Management is built on five fundamental pillars: positive emotions, engagement, healthy interpersonal relationships, meaning, and achievement (Seligman, 2018). This approach provides a more comprehensive framework for promoting wellbeing in the workplace (Jaswal et al., 2024). Currently, interest in Happiness Management has drawn the attention of both academia and corporate governance due to constant changes in the labour Artículos • Mario Alberto Salazar-Altamirano, Orlando Josué Martínez-Arvizu, Esthela Galván-Vela, Rafael Ravina-Ripoll • 121 • market (Elías-Zambrano et al., 2023; Galván-Vela et al., 2024). Globalisation and digitalisation have transformed workplace realities, highlighting the importance of intangible elements such as emotional wellbeing. Additionally, disruptive events like the COVID-19 pandemic accelerated this trend, emphasising its relevance for organisational sustainability in uncertain contexts (Rando-Cueto et al., 2023). Various studies have demonstrated the benefits of a work climate where structured Happiness Management practices are implemented. For example, Farooq et al. (2024) conclude that employees who experience high levels of Happiness Management initiatives tend to show greater productivity, creativity, and resilience. These findings reinforce the need for organisations to adopt concrete strategies to enhance the emotional wellbeing of their teams (Ahumada-Tello, 2023). From an academic perspective, further exploration of Happiness Management helps validate psychological theories such as self-determination. Moreover, it contributes to building more robust conceptual models (Salazar-Altamirano et al., 2024b). These approaches are essential for addressing current organisational challenges and providing solutions tailored to evolving workplace dynamics (Shen et al., 2024). 2.5. Mediation of happiness management and work climate in the relationship between transformational leadership and turnover Intention Recent research has explored how transformational leadership directly and indirectly influences turnover intention. Factors such as Happiness Management and work climate have been identified as mediators in this relationship, although they have generally been studied separately (Buss et al., 2023; Kloutsiniotis et al., 2022). Integrating these elements could provide a better understanding of the motivational role of leaders and how emotional and organisational perceptions affect employees’ decisions to stay or leave (Mercader et al.,2021). In this context, Yücel (2021) conducted a study in Turkey with 478 healthcare professionals to examine the relationship between transformational leadership and turnover intention, mediated by Happiness Management. The findings showed that transformational leaders foster a positive work environment, increasing employees’ well-being levels and significantly reducing their intention to leave the organisation. On the other hand, Suroya et al. (2023), in a study conducted in Purwokerto, Indonesia, with a sample of 176 employees, found that while transformational leadership can strengthen organisational commitment, it does not always reduce turnover intention. It occurs when the work climate does not meet employees’ expectations. Within this framework, the self-determination theory Ryan and Deci (2000) proposed, becomes particularly relevant. This theory suggests that fulfilling basic psychological needs, competence, autonomy, and interpersonal relationships is essential for human wellbeing. In this sense, transformational leadership can act as a facilitator by creating a supportive work climate and promoting Happiness Management practices that enhance employee satisfaction and engagement. From this perspective, the present study aims to contribute to theoretical development by highlighting how the interaction between emotional factors (Happiness Management) and organisational factors (work climate) can bridge transformational leadership and turnover intention. This approach offers a comprehensive view of the mechanisms influencing contemporary workplace decisions. Accordingly, this research has the following objectives: General objective: Anduli • Revista Andaluza de Ciencias Sociales Nº 28 - 2025 • 122 • To analyse how transformational leadership, work climate, and happiness management influence turnover intention, using the case of industrial sector workers in Mexico as a case study. Specific objectives: 1. To evaluate the direct influence of transformational leadership on work climate, happiness management, and turnover intention. 2. To examine the relationship between work climate, happiness management, and turnover intention. 3. To determine the mediating effects of work climate and happiness management in the relationship between transformational leadership and turnover intention. 3. MATERIALS AND METHODS This chapter presents the methodological design used to address the research objectives. It includes a description of the proposed model and hypotheses, the instrument applied, the sampling procedure, and the statistical analysis strategy. The model and hypotheses are developed based on the theoretical framework presented in the previous section. Based on these arguments, the following research hypotheses are proposed: H1: Transformational leadership negatively and significantly affects employees’ turnover intention in Mexico. H2: Transformational leadership positively and significantly affects employees’ work climate in Mexico. H3: Transformational leadership positively and significantly affects employees’ happiness management in Mexico. H4: Work climate positively and significantly affects employees’ happiness management in Mexico. H5: Work climate negatively and significantly affects employees’ turnover intention in Mexico. H6: Happiness management negatively and significantly affects employees’ turnover intention in Mexico. H7: Happiness management mediates the relationship between transformational leadership and employees’ turnover intention in Mexico. H8: Happiness management mediates the relationship between work climate and employees’ turnover intention in Mexico. H9: Work climate mediates the relationship between transformational leadership and employees’ turnover intention in Mexico. H10: Work climate and happiness management mediate the relationship between transformational leadership and employees’ turnover intention in Mexico. These hypotheses define the proposed model in Figure 1. Artículos • Mario Alberto Salazar-Altamirano, Orlando Josué Martínez-Arvizu, Esthela Galván-Vela, Rafael Ravina-Ripoll • 123 • Figure 1. Proposed model Source: Own elaboration 3.1. Participants and procedures This study was conducted using a quantitative approach and a non-experimental design, as the independent variables were not manipulated at any time. This type of design is widely used in social sciences research, as it allows for analysing relationships between variables in their natural context without intervention (Creswell, 1994). Data was collected at a single point, making it a cross-sectional study. This approach is beneficial for studies that gather specific information about characteristics or relationships within populations (Bryman, 2016). The data collection was carried out between November 2023 and January 2024, and the sample consisted of employees from various industrial sectors located in urban regions of central and northern Mexico. The data were collected through a digital questionnaire distributed via various social media platforms, including Facebook, Instagram, and WhatsApp, which participants completed voluntarily. Before answering the questionnaire, the study’s objective was clearly explained to them, and their informed consent was obtained. Several measures were taken during data collection to minimise common method bias (CMB). Participant anonymity was ensured to reduce social desirability and the tendency to provide biased responses. The questionnaire items were also carefully worded to maintain a neutral tone and avoid inducing automatic responses. Furthermore, Harman’s single-factor test was conducted to verify that no dominant factor explained most of the variance, indicating that common method bias did not significantly threaten the study’s results (Podsakoff et al., 2003). The sample consisted of 414 workers (Table 1), selected through non-probability sampling. This type of sampling is common in social research when access to a random population is limited (Etikan, 2016). To ensure the study’s relevance, a screening question was included to determine the participants’ type of occupation. Only employees formally working in public or private organisations for at least six months were included. Of the participants, 63.04% were women and 36.96% were men. Workers held different job positions: 47.10% were in middle management, 38.41% were in junior-level roles, 7.25% held senior management positions, and another 7.25% were business owners. Regarding the size of the organisations where respondents were employed, 53.86% worked in large companies, 18.36% Anduli • Revista Andaluza de Ciencias Sociales Nº 28 - 2025 • 130 • significant indirect effect (β = -0.158, p < 0.001). This suggests that the ability of transformational leaders to reduce turnover intention lies in their capacity to foster employee happiness through emotional engagement and motivational support. Similarly, H8, which proposed that happiness management mediates the relationship between work climate and turnover intention, was also accepted (β = -0.450, p < 0.001). Together, these findings highlight happiness management as a central mechanism in reducing turnover intentions within organisational settings. Finally, two hypotheses explored the role of work climate as a mediator. H9, which suggested that work climate mediates the relationship between transformational leadership and turnover intention, was rejected (p = 0.18), indicating that although leadership influences climate, climate alone does not significantly reduce turnover. However, H10, which proposed a combined mediation effect of work climate and happiness management in the relationship between transformational leadership and turnover intention, was accepted (β = -0.320, p < 0.001). This result demonstrates the complexity and interconnectedness of the model, where leadership influences both the environment and emotional wellbeing, which together affect employees’ decisions to stay or leave. Table 7. Hypothesis testing Hypothesis Variables Influence S.E. C.R. P Contrast H1 LEA ---> TURN -0.139 0.092 -1.52 0.13 Rejected H2 LEA ---> WORC 0.711 0.047 15.26 *** Not Rejected H3 LEA ---> HM 0.194 0.055 3.52 *** Not Rejected H4 WORC ---> HM 0.554 0.068 8.11 *** Not Rejected H5 WORC ---> TURN 0.167 0.126 1.33 0.18 Rejected H6 HM ---> TURN -0.812 0.121 -6.72 *** Not Rejected Indirect effect H7 LEA ---> HM ---> TURN -0.158 0.05 -3.17 *** Not Rejected H8 WORC ---> HM ---> TURN -0.45 0.087 -5.19 *** Not Rejected H9 LEA ---> WORC ---> TURN 0.119 0.089 1.33 0.18 Rejected H10 LEA ---> WORC ---> HM ---> TURN -0.32 0.063 -5.12 *** Not Rejected Note. ***p<0.001 Source: Own elaboration. Figure 2 presents the proposed structural model, illustrating the direct and indirect relationships among the main variables: transformational leadership (LEA), work climate (WORC), Happiness Management (HM), and turnover intention (TURN). The tested hypotheses are represented by arrows, along with the standardised regression coefficients (β) and significance values (p). The R² values for each dependent variable are included, indicating the percentage of variance the predictors explain. The R² values show that the model explains 67.1% of the variance in work climate, 64.5% in Happiness Management, and 33.5% in turnover intention. According to the criteria established by Hoyle (2023), values between 0.33 and 0.67 are considered Artículos • Mario Alberto Salazar-Altamirano, Orlando Josué Martínez-Arvizu, Esthela Galván-Vela, Rafael Ravina-Ripoll • 131 • moderate, while those above 0.67 are high. It reinforces the importance of the mediating variables in the model, highlighting that Happiness Management and work climate play significant roles in the relationship between transformational leadership and turnover intention. Figure 2. Final structural model Source: Own elaboration. 5. DISCUSSION OF RESULTS The main objective of this study was to analyse how transformational leadership, work climate, and happiness management influence turnover intention in employees, using a sample of industrial workers in Mexico. Specifically, the study aimed to examine both the direct and indirect relationships among these variables, with particular focus on the mediating roles of happiness management and work climate. The findings provide a comprehensive understanding of the organisational and emotional mechanisms that shape turnover intention and respond effectively to the objectives initially formulated. The results confirm that transformational leadership has no significant direct effect on turnover intention (H1 rejected) but plays a key indirect role through its influence on work climate (H2 accepted) and happiness management (H3 accepted). This reinforces the notion that leadership styles create the conditions for retention, rather than directly determining whether an employee stays or leaves. The work climate was shown to significantly affect happiness management (H4 accepted), but did not exert a direct impact on turnover intention (H5 rejected). In contrast, happiness management demonstrated a strong direct negative effect on turnover intention (H6 accepted) and served as a significant mediator between both transformational leadership and work climate, and turnover intention (H7 and H8 accepted). Finally, although work climate alone did not mediate the relationship between leadership and turnover (H9 rejected), the combination of work climate and happiness management proved to be a valid pathway (H10 accepted). These outcomes validate the proposed model and support a multi-layered understanding of employee retention. When compared to previous literature, these results both confirm and contrast with prior findings. For instance, the absence of a direct relationship between transformational leadership and turnover intention is consistent with the mediation-based findings of Anduli • Revista Andaluza de Ciencias Sociales Nº 28 - 2025 • 132 • Park and Pierce (2020), but contradicts Rajput and Kumari (2023), who identified a direct negative relationship in technology sector employees in China. These differences may be explained by contextual and sectoral variations such as industry dynamics, national labour policies, or prevailing cultural expectations around leadership. Similarly, the indirect role of work climate mirrors findings by Suryani et al. (2024), who argued that positive climate conditions alone cannot overcome external job market pressures. The strong mediating effect of happiness management aligns with the theoretical assumptions of self-determination theory (Ryan & Deci, 2000), and with recent evidence presented by Yücel (2021) in the healthcare sector, showing how emotional wellbeing reduces turnover. However, other authors such as Setiadi et al. (2020) caution that leadership impact may be limited if structural constraints or misaligned expectations persist, a possibility that also applies to the Mexican industrial context explored in this study. In addition, the descriptive analysis by age and industry subgroups supports the structural findings and provides practical insight. Younger workers showed higher turnover intention and lower happiness levels, while public sector employees reported lower perceptions of transformational leadership. These patterns reinforce the importance of tailoring interventions according to demographic and institutional differences and suggest that organisational culture and leadership training must adapt to varying needs within the workforce. Despite the robustness of the model, several limitations must be acknowledged. First, the cross-sectional design prevents establishing causality, as data were collected at a single time point. This design limits our ability to observe changes over time or confirm the direction of effects. Second, the use of non-probabilistic sampling constrains the generalisability of the results beyond the studied context. Since the research was carried out exclusively in Mexico and focused on the industrial sector, the findings may not be directly applicable to other countries or service-based organisations. Additionally, reliance on self-report data introduces the risk of response bias, as participants may have answered based on subjective perceptions rather than objective conditions. Another limitation is the absence of contextual moderators such as economic pressure, cultural values, or job market dynamics, which may play a crucial role in shaping turnover intention. These elements could help explain why some pathways were weaker or insignificant in the model. Furthermore, although the model explains a significant portion of the variance in turnover intention, it does not capture all possible contributing variables. Future research could address this by employing longitudinal designs, probabilistic sampling, and the integration of additional constructs such as job satisfaction, psychological contract, or employer branding. In conclusion, this study contributes to the understanding of how organisational and emotional variables interact to influence turnover intention. It confirms the central position of happiness management as both a direct predictor and a mediating mechanism, while highlighting the indirect importance of transformational leadership. By situating the analysis within the Mexican context, the study offers locally grounded evidence and opens the door for future comparative research across sectors and countries. Artículos • Mario Alberto Salazar-Altamirano, Orlando Josué Martínez-Arvizu, Esthela Galván-Vela, Rafael Ravina-Ripoll • 133 • 6. CONCLUSIONS This study analysed how transformational leadership, the work climate, and Happiness Management influence employees’ turnover intention in Mexico. The results confirm that transformational leadership significantly creates positive work environments where employees perceive a motivating climate and experience wellbeing. This type of leadership impacts the work environment and enhances employees’ happiness and engagement, fostering greater cohesion and commitment to the organisation. Therefore, companies prioritising transformational leadership practices can develop more satisfied teams with a greater willingness to remain in the organisation. Happiness Management emerged as a key mediator between transformational leadership, the work environment, and turnover intention. Although leadership and the work environment have a limited direct effect, their influence increases when employees experience a high level of wellbeing in their work setting. It highlights the importance of designing strategies that improve the organisational climate and address employees’ psychological needs. Initiatives such as performance recognition, flexible work policies, and professional development programmes can promote a culture of wellbeing and engagement. On the other hand, the results indicate that a positive work environment, while essential for employee wellbeing, does not significantly affect turnover intention. It suggests that retaining talent requires more than a good work climate; external factors such as competitive salaries and career development opportunities must also be addressed. Companies should complement their internal efforts with policies that enhance their attractiveness as employers. Furthermore, the interactions between variables revealed that their effects cannot be analysed in isolation. The dynamic relationship between leadership, work environment, and Happiness Management provides a more comprehensive understanding of the factors influencing employees’ decisions. This integrated approach is critical in competitive and evolving work environments where multiple variables affect retention decisions. In response to the research question posed in this study, the findings demonstrate that transformational leadership influences turnover intention indirectly, primarily through the mediating roles of work climate and happiness management. A positive work climate enhances happiness management, which, in turn, reduces turnover intention. Although neither transformational leadership nor work climate alone significantly diminishes turnover intention, their combined effects, when channelled through employees’ emotional wellbeing, prove decisive in fostering talent retention in Mexican organisations. These conclusions are generally consistent with international studies that highlight the indirect influence of transformational leadership on turnover intention, particularly through emotional and psychological mechanisms (Yücel, 2021; Kim & Park, 2020). However, in contrast to some studies conducted in other sectors or countries, such as Rajput and Kumari (2023) in China our findings did not support a direct effect of leadership on turnover intention. This discrepancy may be attributed to contextual differences in labour conditions, cultural values, or the structure of job opportunities, which suggests that retention strategies must be adapted to local realities. Finally, this study contributes to filling a gap in the literature by analysing these dynamics in the Mexican context. The findings provide an empirical basis for designing Anduli • Revista Andaluza de Ciencias Sociales Nº 28 - 2025 • 134 • more tailored policies in a setting characterised by unique cultural and economic factors. Mexican companies can leverage these conclusions to develop management models that promote employee wellbeing and organisational sustainability, benefiting their workforce and business outcomes. Based on these findings, organisations are encouraged to implement concrete strategies to strengthen emotional wellbeing and reduce turnover intention. These include promoting transformational leadership through continuous training in communication and empathy, establishing flexible working arrangements to enhance work-life balance, developing recognition and reward programmes that reinforce belonging and achievement, and fostering transparent internal communication channels that improve trust and climate perception. Additionally, offering clear career development pathways and competitive compensation schemes will complement emotional wellbeing efforts and contribute to long-term organisational sustainability. 6.1. Practical implications The findings of this study offer actionable and evidence-based insights for organisations committed to strengthening employee retention and building healthier, more sustainable workplaces. First, the results confirm that transformational leadership is not just a leadership style, it is a catalyst for creating organisational environments that support emotional wellbeing. While its direct effect on turnover intention is not significant, its indirect influence through work climate and happiness management is substantial. This highlights the value of training leaders not only in technical management but also in empathy, trust-building, and motivational communication, competencies that cultivate climates where employees feel seen, heard, and valued. Second, the study demonstrates that happiness management is the strongest predictor of reduced turnover intention. This points to the strategic need for HR policies that go beyond perks and benefits and instead focus on fulfilling core psychological needs, belonging, purpose, and achievement. Organisations can respond by developing recognition systems, peer support networks, and feedback-driven work cultures that reinforce emotional engagement. Although the work climate does not directly reduce turnover, it plays a pivotal indirect role by enhancing employee happiness. As such, organisations should not overlook the power of climate diagnostics: periodic assessments of trust, fairness, and collaboration can serve as early warning signals and inform targeted interventions to sustain employee morale. Importantly, this study also sheds light on specific groups requiring urgent attention. Younger employees (ages 20–30) reported the highest turnover intention and the lowest happiness levels. Meanwhile, public sector workers showed weaker perceptions of leadership and wellbeing. These insights call for differentiated strategies, such as mentorship programmes for young talent, and investment in leadership capacitybuilding in public institutions, to ensure that retention efforts are inclusive and adapted to diverse workforce profiles. In sum, the study offers a practical framework for integrating leadership development, climate awareness, and happiness management into retention strategies. Rather than addressing turnover in isolation, organisations are encouraged to take a systemic view—fostering leaders who inspire, environments that support, and people who thrive. Artículos • Mario Alberto Salazar-Altamirano, Orlando Josué Martínez-Arvizu, Esthela Galván-Vela, Rafael Ravina-Ripoll • 135 • 6.2. Future research directions Future research could benefit from longitudinal designs to track how relationships between transformational leadership, work climate, happiness management, and turnover intention evolve over time. Exploring demographic variables such as gender, age, or sector (e.g. healthcare or technology) could uncover relevant differences in perceptions and needs, allowing for more inclusive and sector-specific organisational strategies. Additionally, the integration of AI tools, such as machine learning or text analysis, offers potential for more precise diagnostics of workplace dynamics. Finally, examining the impact of global disruptions, such as the COVID-19 pandemic or hybrid work arrangements, would provide timely insights into how organisational wellbeing and retention strategies must adapt to changing labour conditions. Author Contributions: Salazar-Altamirano M.A. and Martínez-Arvizu O.J. contributed to the conceptualisation and design of the study. Salazar-Altamirano M.A. was responsible for the methodology, data analysis, and interpretation. Data collection was carried out by Salazar-Altamirano M.A. and Martínez-Arvizu O.J. The original draft of the manuscript was prepared by Salazar-Altamirano M.A., while all authors (Salazar-Altamirano M.A., Martínez-Arvizu O.J., Galván-Vela E., and Ravina-Ripoll R.) contributed to the review and editing of the manuscript. Supervision was provided by Galván-Vela E. and Ravina-Ripoll R. Funding This research did not receive external funding. Acknowledgements The authors thank the Universidad Autónoma de Tamaulipas, Universidad de Cádiz, CETYS Universidad, and the Secretaría de Ciencia, Humanidades, Tecnología e Innovación (Mexico) for their support. We are also grateful to the study participants, the anonymous reviewers for their valuable feedback, and the editorial team of Anduli for their guidance during the review process. Conflicts of Interest The authors declare no conflicts of interest. Data Availability Statement The data that support the findings of this study are available from the corresponding author upon reasonable request. Declaration on the use of Artificial Intelligence Artificial intelligence tools were used solely for English grammar revision during the writing process. No AI was involved in the design, data analysis, interpretation of results, or formulation of scientific content. All intellectual and analytical work was carried out by the authors. REFERENCES Adinew, Y. (2023). 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