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

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 (