Can Ethical Leadership and Informational Justice Work as Magic to Get Innovative Work Behavior and Retention from New Workforce?

Abstract

Purpose: This research explores the impact of ethical leadership on innovative work behavior and employee retention in Pakistan’s hotel industry, focusing on generational differences between millennials and Generation Z. Method: Using a quantitative, cross-sectional design, data were collected from 147 hotel employees in Lahore through a structured survey. Results:Findings reveal a positive relationship between ethical leadership, innovative work behavior, and employee retention, but informational justice does not significantly moderate these relationships for Generation Z. Conclusion: The study highlights the influence of generational differences on how ethical leadership is perceived and its effects on workplace outcomes. Practical implications emphasize fostering ethical leadership and fair communication to enhance innovation and retain Generation Z employees. This study contributes to the literature by addressing ethical leadership, generational shifts, and informational justice within the developing country service sector.