This study investigates how monetary and non-monetary incentives influence environmentally responsible behavior among employees in the Sri Lankan hospitality industry. Data were collected from 383 staff members through a cross-sectional survey and analyzed using Structural Equation Modeling (SEM) to explore the links between incentives and sustainable workplace actions, with a focus on differentiating between in-role and extra-role green behaviors. The findings reveal that both incentive types positively affect Green Employee Behavior (GEB). Monetary rewards, which explain 36.3% of behavioral variance, are most effective in ensuring compliance with formal environmental policies. In contrast, non-monetary incentives are more influential in motivating voluntary, value-driven behaviors that support the cultivation of a long-term sustainable organizational culture. The results highlight the complementary function of these incentive strategies: monetary incentives promote short-term adherence, while non-monetary incentives encourage enduring commitment to eco-friendly practices. These insights offer actionable guidance for managers and policymakers seeking to design incentive systems that simultaneously secure immediate compliance and foster proactive, sustainability-oriented engagement. By adopting such dual-incentive approaches, hospitality firms can enhance their environmental performance while contributing to broader sustainability objectives. The study further enriches the literature by demonstrating the differentiated impact of incentive types on distinct categories of green workplace behaviors.
