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Significance of Financial and Non-financial Incentives in Shaping Employee Motivation in Tea Industry: A Sri Lankan Case Study

Authors:

M. G. T. Lakmali ,

University of Ruhuna, Mapalana, Kamburupitiya, LK
About M. G. T.
Department of Agricultural Economics, Faculty of Agriculture
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G. C. Samaraweera,

University of Ruhuna, Mapalana, Kamburupitiya, LK
About G. C.
Department of Agricultural Economics, Faculty of Agriculture
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P. V. S. Harshana

University of Ruhuna, Mapalana, Kamburupitiya, LK
About P. V. S.
Department of Agricultural Economics, Faculty of Agriculture
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Abstract

Sri Lankan Tea sector is experiencing a considerable decline in the labor force, as many workers are moving away from the tea plantations. Incentives are one of the prime factors in reducing labor turnover. However, the role of incentives in employee motivation in the tea sector is questionable. Therefore, the main aim of this study was to identify the role of financial and non-financial incentives in motivating employees in the tea sector in Sri Lanka. Data were collected using pre-tested structured questionnaires from all 60 tea factory workers in Morapitiya Tea Factory, Sri Lanka. In the data analysis, Wilcoxon Sign Rank Test results revealed, bonuses (test value=7.285), over-time payments (test value=7.208), granting EPF/ETF (test value=6.822), job security (test value=7.039), recognition (test value=6.647), positive working environment (test value=6.659) and promotion and career growth (test value=6.548) proven to have a significant (<0.05 level) impact on employee motivation in tea sector. Preference ranking revealed that tea sector employees prefer financial incentives (83%) more than non-financial incentives. MANOVA results revealed female employees prefer (Mean=3.281) recognition as a motivation tool more than their male counterparts (Mean=3.281; P value=0.003). Employees who worked more than 10 years within the organization prefer more non-financial incentives (Mean=1.543; P value=0.022) than employees who worked less than 10 years and their preference for career growth (Mean=2.598; P value=0.000) is higher than employees who have worked less than 10 years. The findings of the present study are of great significance to the managers, policymakers, marketers attached to the tea sector in particular.
How to Cite: Lakmali, M.G.T., Samaraweera, G.C. and Harshana, P.V.S., 2022. Significance of Financial and Non-financial Incentives in Shaping Employee Motivation in Tea Industry: A Sri Lankan Case Study. Sri Lankan Journal of Agriculture and Ecosystems, 4(1), pp.112–124. DOI: http://doi.org/10.4038/sljae.v4i1.69
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Published on 07 Jul 2022.
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