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Green HRM and Employee Engagement: Impact on Employee Performance in Manufacturing Companies Amiria, Hana Dhia; Suprapto, Suprapto
Journal of Sustainable Economic and Business Vol. 1 No. 4 (2024): Journal of Sustainable Economic and Business (JOSEB)
Publisher : ARE Publisher

Show Abstract | Download Original | Original Source | Check in Google Scholar | DOI: 10.70550/joseb.v1i4.42

Abstract

Objectives: This study aims to analyze the impact of green training and green compensation and rewards on employee performance through employee engagement in a paint manufacturing company in Tangerang. Methodology: Using a quantitative survey approach, 130 respondents were selected via probability sampling. Data analysis was conducted with Structural Equation Modeling (SEM) using Partial Least Square (PLS) software. Finding: The results indicate that green training and green compensation and rewards have a positive and significant impact on employee engagement. However, green training and green compensation and rewards do not have a significant direct effect on employee performance. Employee engagement has a positive and significant effect on employee performance and fully mediates the relationship between green training and employee performance, as well as between green compensation and rewards and employee performance. Conclusion: Green HRM practices such as green training and green compensation and rewards can effectively enhance employee performance when mediated by employee engagement. This highlights the importance of fostering employee engagement as a critical link between Green HRM initiatives and performance outcomes.