A management perspective on how to encourage sustainability through incentives and employee motivation - A qualitative study of five companies within the Swedish energy industry

Abstract

Previous research shows that there is a leap between executives’ and employees’ view on sustainability issues. However, for a company to succeed in today’s economy, sustainability commitment is a prerequisite. Therefore, it is vital for a manager to successfully communicate their sustainability agenda throughout the company. This thesis will examine how managers at five large companies within the energy industry use incentives to motivate employees. The aim is to create a better understanding of how internal and external incentives can be used to improve sustainability within a company. The study is based on interviews with five managers. The empirical findings are then analysed through the theoretical framework. Internal motivation is most frequently used and perceived as the most effective. Dialogues and lectures are used to form a sense of meaningfulness. The view on external motivation, on the other hand, differs in some aspects. External motivation can be of both financial and non-financial character. One company thought that individual financial incentives was detrimental, while another company said that it encourage employees to some extent. Non-financial incentives such as praises was used by all the companies. Furthermore, the importance of positive reinforcement is pervading in all companies and outweighs the usage of punishments and discouragements.