Stability through Resilient Leadership: A Qualitative Case Study on Employee Retention in Sri Lankan Apparel Sector

Abstract

Employee retention is a critical issue for small and medium-sized enterprises (SMEs), especially in developing economies facing economic and social disruptions. This study explores how resilient leadership contributes to employee retention in a medium-scale apparel SME in Sri Lanka. Using a qualitative single-case study design, data were collected through six semi-structured interviews, document analysis, and field observations. Thematic analysis revealed four aggregated leadership practices that supported long-term employee retention: emotional care during crisis, inclusive workplace culture, internal career development, and moral, community-oriented leadership. These findings demonstrate how resilient leadership is characterised by adaptability, trust-building, and ethical consistency which helps sustain employee commitment and workplace stability. The study also shows how elements of transformational and transactional leadership were embedded within a broader resilience leadership approach. This research contributes to leadership and HRM literature by offering empirical insights into how SMEs in resource-constrained settings can retain workers through informal, values-based leadership. Practical implications are provided for SME leaders aiming to build committed, inclusive, and stable workforces during and beyond times of crisis.