What Are Intrinsic Rewards and How Do They Affect Employee Performance?
What Are Intrinsic Rewards and How Do They Affect Employee Performance?
Intrinsic rewards are the things that give a person a sense of accomplishment and motivate them to work hard. These types of rewards come from within a person and are particularly important when it comes to employee motivation in the workplace. In this article, we'll explain what intrinsic rewards look like and how they can benefit a person and their workplace. If you’re an employer or manager, read on for plenty of tips on how to use these intrinsic rewards to better motivate your employees and create a more engaging work environment.
Things You Should Know
  • Intrinsic rewards are internal factors that motivate someone to do a certain task, and they play an important role in motivating a person to work.
  • Examples of intrinsic rewards include things like doing tasks someone finds meaningful, being given autonomy in their work, and learning new skills.
  • Intrinsic rewards can help increase a person’s satisfaction in their job and can have a positive impact on a company’s overall productivity.

What are intrinsic rewards?

Intrinsic rewards are internal factors that motivate someone to work. As opposed to extrinsic rewards, such as money, insurance benefits, or a promotion, intrinsic rewards are mainly psychological, such as feelings of pride and fulfillment after completing a task or learning something new. In the workplace, intrinsic rewards have been shown to play an important role in motivating employees to perform well. Intrinsic rewards come from doing something that a person finds enjoyable, whereas extrinsic rewards come from doing something that’s expected and getting rewarded for it. Intrinsic rewards motivate people to work because they want to work. On the other hand, extrinsic rewards motivate people to do things because they know they’ll get something in return.

Examples of Intrinsic Rewards

Purpose A person might be more motivated to complete tasks and go the extra mile when they know that they’re doing something meaningful that’ll impact others. Knowing that their work matters can lead them to feel more fulfilled and satisfied, thus motivating them to work even harder. For example, a person who finds a lot of meaning in helping others might be most motivated when their work centers around training new employees. Employers can fuel this intrinsic reward by actively listening to their employees’ needs and delegating tasks that they know their employees find meaningful.

Pride When people feel proud of the work they do, they’re internally motivated to continue with their work and give their best performance. This pride might come from a person’s acknowledgment of their own skills and abilities, or it might be caused by having others admire their work. When someone’s boss compliments their work and gives them praise for their hard work, a person will likely feel a lot of pride and be motivated to keep up the hard work. Employers can help by coming up with a system to give proper recognition to employees, such as giving shout-outs to employees in weekly emails.

Autonomy A person might be more motivated to work hard if they’re given the freedom to choose the type of work they do or get to structure their day-to-day schedule. Being given the opportunity to make choices throughout the day and the freedom to prioritize certain tasks according to an individual’s needs can be an important intrinsic motivator. For example, someone might feel intrinsically rewarded when they’re given the freedom to decide whether they’ll work in the office or at home. A supervisor can implement intrinsic rewards by allowing their employees to decide in what order they want to complete their daily tasks. Or, a supervisor who involves their employee in important decisions and listens to their feedback can help that employee feel more intrinsically rewarded and motivated to be more engaged in their work.

Competence It can be very rewarding when someone feels like they’re doing a good job and starting to master complex tasks. While it may be challenging at first, gaining a feeling of competence in one’s work can lead them to feel very fulfilled and satisfied with themselves. This sense of competence can also be achieved by learning new skills or acquiring new knowledge. For example, giving someone the opportunity to repeat a task over and over until they master it can offer opportunities for intrinsic rewards. Or, offering employees more training in specific skills they want to work on can help them feel more competent, confident, and motivated to work hard.

Progress When someone is able to see themselves getting better in their line of work and making progress, they can feel more intrinsically motivated. The knowledge that they’re constantly improving can increase a person’s satisfaction in their work and act as an intrinsic reward for them. For example, a person might feel intrinsically rewarded if they’re able to compare their past and present work. They might keep a portfolio of their work and look back to see how much progress they’ve made. Supervisors and employers can provide this type of reward by helping their employees set goals and checking in with them to see how they’re progressing in those goals.

Recognition It can be very rewarding when someone knows that they’re being entrusted with important work and being given more responsibility. This can help them feel like their work truly matters and motivate them to achieve the best results. An employer can offer this reward by complimenting them, shouting them out during team meetings or memos, and delegating more challenging tasks to employees they deem fit for the job.

Teamwork It can be rewarding for someone when they know that their role within a team is important and that they’re contributing to something great. Working in a team can also instill a sense of personal responsibility, and this can motivate them to be more focused and work harder. For example, a project manager might find their role intrinsically rewarding since they’re being given a lot of responsibility and are in charge of overseeing others’ work. By offering more opportunities for collaboration, such as with group presentations or projects, employers can better offer this intrinsic reward to their employees.

Advantages of Intrinsic Rewards

Intrinsic rewards positively affect employee satisfaction. When someone has intrinsic rewards that motivate them, such as feelings of pride or confidence, they’re more likely to feel satisfied and fulfilled within their job. With sufficient intrinsic rewards, a person is more likely to feel like their needs are being met in their job. One disadvantage is that intrinsic rewards may not completely satisfy all of a person’s needs when it comes to their work. For example, even though doing meaningful work can motivate a person to stay with a job, an insufficient salary may cause them to be dissatisfied with the job since money is important to a person’s well-being and survival.

They can increase a company’s efficiency. When people are given intrinsic rewards and feel internally motivated, they’re more likely to put effort into achieving the best results, which can really help a company’s overall productivity. For example, if they feel rewarded by learning new skills, they can help the company by diversifying its skills and services offered. However, intrinsic rewards can also lead to a decrease in productivity and employee motivation if employees don’t consider them to be valuable or relevant to them. It can also be difficult to measure how valuable a certain intrinsic reward is to a person and how effective it’ll be.

They can have a positive effect on creativity. When people aren’t focused solely on completing a task for the sake of getting it done or earning a paycheck, they may be able to offer more creative solutions and ideas. This is especially true if they’re rewarded with more autonomy and praise for their ideas. However, intrinsic rewards aren’t guaranteed to be consistent. A person might find their sense of autonomy rewarding at one point, but then find it to be stressful at another.

They can decrease employee turnover. When people focus on their internal motivators and get the intrinsic rewards they find valuable, they’re more likely to stay with a certain company for a longer time. These intrinsic rewards can also help decrease a person’s stress and prevent them from burning out. However, intrinsic rewards can also lead to people ignoring their own limits. They may work tirelessly for the sake of achieving a goal but end up burning out midway because they didn’t pace themselves.

How to Create Intrinsic Rewards for Employees

Actively listen to the needs of your employees. Listening to the wants and needs of your employees can help you identify what they consider to be intrinsic rewards. Each person will find different things rewarding, so take the time to listen to each individual and ask them about what steps you can take to help them feel rewarded and motivated in their work. Set up one-on-one meetings with each of your workers and offer them a space where they can speak honestly about their thoughts on the work they do. Listen attentively and take notes about possible ways you can help them feel more motivated in their work.

Support the goals of your employees. Having specific goals for their career can help your employees feel intrinsically motivated to do well in their jobs, and achieving those goals can be very rewarding. Encourage your employees and find ways you can help them work toward their goals. Such support can also help instill feelings of pride and confidence in your employees. For example, if it’s someone’s goal to eventually make it to a manager position, help them find a mentor from whom they can learn or help them find extra training opportunities that’ll teach them necessary skills. EXPERT TIP Elizabeth Douglas Elizabeth Douglas CEO of wikiHow Elizabeth Douglas is the CEO of wikiHow. Elizabeth has over 15 years of experience working and managing teams in the tech industry. She has held roles in multiple areas, including computer engineering, user experience, and product management. She received her BS in Computer Science and her Master of Business Administration (MBA) from Stanford University. Elizabeth Douglas Elizabeth Douglas CEO of wikiHow Elizabeth Douglas, CEO of wikiHow, adds: “For me, it comes down to really caring about your employees. I always try to make sure that it’s a mutually beneficial arrangement, where they're growing, learning, and enjoying their work, and then also adding value to the company.”

Show your employees that you value them and their work. Offer your employees praise and genuine compliments when they do a good job. It can be very rewarding to them to know that their work is appreciated, and they may be even more motivated to continue working hard. Praise the things they do well and offer them opportunities to continuously improve when they make a mistake. Ask your employees for feedback to show them that their opinions are valued. Follow through on any promises you make to your employees to show that you respect them and are committed to creating a healthy, encouraging work environment. EXPERT TIP Elizabeth Douglas Elizabeth Douglas CEO of wikiHow Elizabeth Douglas is the CEO of wikiHow. Elizabeth has over 15 years of experience working and managing teams in the tech industry. She has held roles in multiple areas, including computer engineering, user experience, and product management. She received her BS in Computer Science and her Master of Business Administration (MBA) from Stanford University. Elizabeth Douglas Elizabeth Douglas CEO of wikiHow Elizabeth Douglas, CEO of wikiHow, adds: “For the kind of roles that I manage, I think it’s important to empower people to leverage their strengths to create value. This also means you need to listen when they're having problems and be receptive to feedback, both positive and negative.”

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