The Influence of Green Compensation and Rewards and Leadership Style on Employee Sustainable Performance with Employee Engagement as a Mediating Variable

Authors

  • Norman Anggara Universitas Mercu Buana
  • Kasmir Kasmir Universitas Mercu Buana

DOI:

https://doi.org/10.55927/fjmr.v4i9.462

Keywords:

Green Compensation and Rewards, Leadership Style, Sustainable Employee Performance, and Employee Engagement

Abstract

This study examines the influence of Green Compensation and Rewards and Leadership Style on Employee Sustainable Performance, with Employee Engagement as a mediating variable. The research was conducted at Perum LPPNPI (AirNav Indonesia), a state-owned enterprise in air navigation services. A total of 103 functional employees were surveyed, selected from a population of 145 using the Krejcie and Morgan sampling table. Data were collected through questionnaires and analyzed using Structural Equation Modeling–Partial Least Squares (SEM-PLS) via SmartPLS. The results indicate that Green Compensation and Rewards and Leadership Style significantly affect Employee Sustainable Performance, both directly and indirectly through Employee Engagement. Employee Engagement thus plays a pivotal mediating role, reinforcing the link between green HR practices, leadership, and sustainable performance.

References

Ababneh, O. M. A. (2021). How do green HRM practices affect employees’ green behaviors? The role of employee engagement and personality attributes. Journal of Environmental Planning and Management, 64(7), 1204–1226. https://doi.org/10.1080/09640568.2020.1814708

Afrin, S., Asyraf Bin Mohd Kassim, M., Yusof, M. F., Hassan, Md. S., Islam, Md. A., & Khairuddin, K. N. B. (2023). Investigating the Determinants of Employee Performance for Sustainability: A Study on the Bangladesh Insurance Industry. Sustainability, 15(7), 5674. https://doi.org/10.3390/su15075674

Agbana, J., Iyaji, F. I., & Bakare, A. A. (2024). Sustainability of Employee Performance and Leadership Styles Valor: A Double Dynamic Approach. International Journal of Research Publication and Reviews, 5(8), 173–186. https://doi.org/10.55248/gengpi.5.0824.2005

Amiria, H. D., & Suprapto, S. (2025). Green HRM and Employee Engagement: Impact on Employee Performance in Manufacturing Companies. Journal of Sustainable Economic and Business, 1(4), 263–273. https://doi.org/10.70550/joseb.v1i4.42

Andrlić, B., Priyashantha, K. G., & De Alwis, A. C. (2023). Employee Engagement Management in the COVID-19 Pandemic: A Systematic Literature Review. Sustainability, 15(2), 987. https://doi.org/10.3390/su15020987

Barinua, V., & Worlu, W. S. (2022). Green Human Resource Management and Organizational Performance. International Journal of Academic and Applied Research (IJAAR), 8(4). https://www.researchgate.net/publication/360396740

Bernardin, C. I., & Russel, D. (2016). Pinter Manajer, Aneka Pandangan Kontemporer (A. Maulana, Trans.). Binarupa Aksara.

Chaudhary, R. (2019). Green human resource management in Indian automobile industry. Journal of Global Responsibility, 10(2), 161–175. https://doi.org/10.1108/JGR-12-2018-0084

Daryoto Mulyadi Candra. (2024). Teori dan Gaya Kepemimpinan Dalam Membentuk Karakter dan SDM yang Unggul. Jurnal Rimba : Riset Ilmu manajemen Bisnis dan Akuntansi, 2(3), 356–368. https://doi.org/10.61132/rimba.v2i3.1166

Dewi, S., Sanusi, A., & Sugito, P. (2024). Employee Engagement and Performance: Empirical Findings from the Indonesian Civil Apparatus for Sustainable Development. KnE Social Sciences. https://doi.org/10.18502/kss.v9i28.17295

Elrayah, M., & Semlali, Y. (2023). Sustainable Total Reward Strategies for Talented Employees’ Sustainable Performance, Satisfaction, and Motivation: Evidence from the Educational Sector. Sustainability, 15(2), 1605. https://doi.org/10.3390/su15021605

Faisal, S. (2023). Green Human Resource Management—A Synthesis. Sustainability, 15(3), 2259. https://doi.org/10.3390/su15032259

Hair, J. F., Hult, G. T. M., Ringle, C. M., & Sarstedt, M. (2022). A primer on partial least squares structural equation modeling (PLS-SEM) (Third edition). SAGE Publications, Incorporated.

Hariram, N. P., Mekha, K. B., Suganthan, V., & Sudhakar, K. (2023). Sustainalism: An Integrated Socio-Economic-Environmental Model to Address Sustainable Development and Sustainability. Sustainability, 15(13), 10682. https://doi.org/10.3390/su151310682

International Civil Aviation Organization. (2019). ICAO Environmental Report 2019: Aviation and Environment. https://www.icao.int/environmental-protection/pages/envrep2019.aspx

Ji, T., De Jonge, J., Peeters, M. C. W., & Taris, T. W. (2021). Employee Sustainable Performance (E-SuPer): Theoretical Conceptualization, Scale Development, and Psychometric Properties. International Journal of Environmental Research and Public Health, 18(19), 10497. https://doi.org/10.3390/ijerph181910497

Kainzbauer, A., Rungruang, P., & Hallinger, P. (2021). How Does Research on Sustainable Human Resource Management Contribute to Corporate Sustainability: A Document Co-Citation Analysis, 1982–2021. Sustainability, 13(21), 11745. https://doi.org/10.3390/su132111745

Min, J., Iqbal, S., Khan, M. A. S., Akhtar, S., Anwar, F., & Qalati, S. A. (2020). Impact of supervisory behavior on sustainable employee performance: Mediation of conflict management strategies using PLS-SEM. PLOS ONE, 15(9), e0236650. https://doi.org/10.1371/journal.pone.0236650

Mizrak, F. (2023). Strategies for Effective Human Resource Management in the Aviation Industry: A Case-Based Analysis. Beykoz Akademi Dergisi, 11(2), 82–109. https://doi.org/10.14514/beykozad.1346605

Mobarak Karim, Md., Bin Amin, M., Ahmed, H., Hajdu, Z., & Popp, J. (2023). The influence of leadership styles on employee performance in telecom companies of Bangladesh. Problems and Perspectives in Management, 21(3), 671–681. https://doi.org/10.21511/ppm.21(3).2023.52

Nawangsari, L. C., Siswanti, I., Prasetyo, J. H., & Rianto, R. S. (2023). Promoting Sustainable Employee Performance Through Green Human Resources Management & Green Behaviour. 2023.

Nazneen, A., Qazi, S., & Shamim, M. (2024). Study of Impact of Green HRM Practices and Employee Performance in Hospitality Sector. 2024.

Nusraningrum, D., Rahmawati, A., Wider, W., Jiang, L., & Udang, L. N. (2024). Enhancing employee performance through motivation: The mediating roles of green work environments and engagement in Jakarta’s logistics sector. Frontiers in Sociology, 9, 1392229. https://doi.org/10.3389/fsoc.2024.1392229

Reijnders, L. (2022). Defining and Operationalizing Sustainability in the Context of Energy. Energies, 15(14), 5169. https://doi.org/10.3390/en15145169

Ria, E., Saputra, A., & Rispantyo, R. (2024). Performance of Indonesian Batik SMEs: An analysis of Green Intrinsic Motivation, Green communication, and Green Compensation. Journal of Engineering Management and Competitiveness, 14(2), 135–147. https://doi.org/10.5937/JEMC2402135R

Sumarno, A. & M. Ali Iqbal. (2022). The Effect of Internal Communication and Employee Well-Being on Employee Performance, Mediated Thru Emplyee Engagement (Study at PT WUZA). Dinasti International Journal of Management Science, 3(6), 1015–1031. https://doi.org/10.31933/dijms.v3i6.1303

Syahraini, M., Hamzah, M. N., Rahim, A. R., & Sultan, Z. (2025). The Role of Civil Servant Professionalism and the Merit System on Employee Sustainable Performance Through Value Co-Creation. Jurnal Manajemen Bisnis, 16(1), 185–208. https://doi.org/10.18196/mb.v16i1.25610

Tedla, B. A., Redda, E. H., & Gaikar, V. (2021). Sustainable Human Resource Management through Leadership Styles and School Performance:A Study within An Eritrean Context. SSRN Electronic Journal. https://doi.org/10.2139/ssrn.3892835

Thanh, N. H., & Quang, N. V. (2022). Transformational, Transactional, Laissez-faire Leadership Styles and Employee Engagement: Evidence From Vietnam’s Public Sector. Sage Open, 12(2), 21582440221094606. https://doi.org/10.1177/21582440221094606

World Commission on Environment and Development (WCED). (1987). Our Common Future: Report of the World Commission on Environment and Development (No. A/42/427). https://digitallibrary.un.org/record/139811?v=pdf

Downloads

Published

2025-09-15