Monetary incentives and green employee behaviour in the Sri Lankan hospitality industry

Abstract

One of significant contributors to the economy of the Sri Lankan economy is the hotel industry which however has its share of environmental challenges such as high consumption of energy, wastage and emission of greenhouse gases. Using Structural Equation Modeling (SEM), this paper aims explores the impact of Monetary Incentives and Green Employee Behaviour as one of the means of promoting green behavior among employees. Adopting a quantitative research design, data was collected through the use of standardized questionnaire, which was applied on 383 Colombo hotel employees. The research attests that monetary incentives positively impact on both in-role and extra-role green behavior and confirms that monetary incentives trigger environmentally friendly work behaviour. The paper reveals the need to develop incentive systems based on the specific socio-cultural and economic realities in Sri Lanka. It also indicates in the study that monetary rewards should be implemented as part of the comprehensive Green Human Resource Management mechanism in motivating long term environmentally sound behavior. The study has implications to hotel policy and managers in that effective monetary incentive schemes can have a role to play in the sustainability of tourism and the environment in Sri Lanka. Future researchers are advised to explore the role of non-financial rewards and assess the long-term sustainability of monetary incentive programmes in fostering green behaviour.