Abstract
PurposeManagers of public organizations in liberalized sectors face the dual imperative of retaining skilled employees who might be poached by commercial competitors and improving service performance levels without a free hand to invest resources. While employee work engagement (EWE) has been previously suggested as a solution to such management challenges, limitations in its ability to retain employees have been identified. We therefore examine how a social identity crafting (SIC) approach to public leadership that confers a sense of group identity among team members can enhance and extend beyond EWE in addressing this dual imperative.Design/methodology/approachWe report findings from a survey of employees (n = 199) at “ATCO,” a state-owned national airline that is facing challenges from commercial rivals within a new, competitive environment.FindingsWe confirm previously identified limitations of EWE and, further, demonstrate that a social identity approach to leadership offers a promising avenue for public managers, not only by enhancing employee engagement but, more importantly, by enhancing retention and service performance.Originality/valueWe contribute to studies of leadership, particularly for managers operating in the public sector and resource-constrained environments, demonstrating how SIC, which does not require costly investment to attain, can deliver improved service performance and reduced employee turnover intention, operating beyond EWE, which reaches a plateau in respect of the latter.