Investigating the Influence of Emotional Stability on Employee Engagement: Examining the Mediating Role of Leadership Styles

Abstract

Despite growing academic and practical interest in employee engagement, limited research has comprehensively examined how emotional stability influences engagement outcomes through different leadership styles. Guided by the PICOC framework (Population: banking employees; Intervention: leadership styles; Outcome: engagement; Context: organizational settings), this study investigates the relevance, evidence, and actionability (REA) of emotional stability's influence on work engagement, specifically mediated by transactional and paradoxical leadership styles. Adopting a positivist philosophy and a deductive research approach, the study collected quantitative data from 350 employees in Karachi’s banking sector through a structured, cross-sectional survey. Data were analyzed using SmartPLS 4 to assess seven hypothesized relationships—four direct and three indirect. Results reveal that emotional stability does not significantly predict work engagement directly, nor is this relationship mediated by transactional leadership. However, paradoxical leadership emerges as a significant mediating factor, highlighting its dynamic role in bridging emotional traits and engagement outcomes. The study offers evidence-based insights for leaders and HR practitioners in Pakistan's banking industry to optimize engagement strategies. By integrating emotional stability with adaptive leadership models, organizations can foster a more committed and energized workforce. Although limited by its cross-sectional scope and sector-specific sample, the study lays a foundation for actionable future research, including longitudinal approaches and expanded mediators.