Extrinsic Motivation: Fueling Success in the Workplace

Motivation is the most powerful yet substantial factor that drives productivity and job satisfaction in a workplace. Successful businesses focus on inspiring their workforce through intrinsic and extrinsic motivation, which greatly maximizes employee performance and ultimately leads to overall success. For employees to shun negative behaviours and outputs, they are required to be consistently rewarded with incentives, positive feedback or prompts. It helps bring up their drive to succeed at the given tasks and yield great results.

In the realms of the business world, harnessing extrinsic motivation in the workplace has become more pressing. HR experts have to gear up in skills and knowledge to understand what brings employees to maximize their potential and how to effectively leverage extrinsic motivational strategies to foster a satisfying and productive work environment. Additionally, we explore the pros and downsides of extrinsic motivation and its real-world examples in the workplace.

What is Extrinsic Motivation?

Extrinsic motivation is the proclivity to perform well and succeed to gain external rewards such as praise, grades, money or recognition. For instance, an employee may be putting his nose to the grindstone in order to complete his project before the deadline to receive a bonus or to avoid an admonishment from his boss. Essentially, this type of motivation arises from outside the individual and is not backed by internal satisfaction. This phenomenon is grounded in operant conditioning where individuals learn from experiences or consequences. Let's say an employee makes a decision for which he is praised, he will more likely tend to make a similar choice in his future endeavours.

Extrinsic vs. Intrinsic Motivation: Understanding the Difference

Two types of motivation drive organizational behaviours: intrinsic and extrinsic. Here’s a breakdown:

Intrinsic Motivation

Comes from Within.

Engaging in behaviour as it is inherently enjoyable or interesting.

An example includes employees who take on a challenging project because they find it intellectually stimulating.

Extrinsic Motivation

comes from outside the individual.

Fueled by external outcomes/ rewards.

Examples include employees motivated by a performance bonus or promotion.

What is Self-Determination Theory?

Developed by psychologists Edward Deci and Richard Ryan, the Self-Determination Theory originates from the role of intrinsic motivation and identifies three basic psychological needs that are essential for fostering it: autonomy, competence, and relatedness.

Autonomy- the need to feel in control of one’s life, behaviours and goals.

Competence- the need to gain proficiency and mastery and learn diverse skills.

Relatedness- the need to feel a sense of belonging and connectedness with others.

SDT not only accentuates the value of intrinsic motivation but also acknowledges the role of extrinsic motivation. It posits that extrinsic rewards can further support intrinsic motivation so long they align with a person’s sense of autonomy and competence.

The Need for Extrinsic Motivation in the Workplace

Organizations require extrinsic motivation tactics in the workplace for a variety of reasons:

To spur productivity by providing actionable goals and rewards.

To invoke individuals to perform at their best by rewarding them.

To inject some excitement or fun into the work that’s mundane and uninteresting.

To achieve short-term goals and targets.

Pros of Extrinsic Motivation in the Workplace

Employers benefit from using extrinsic motivation in the workplace.

1. Clear Incentives: employees can look forward to meeting the expectations of superiors and gain attractive, pre-defined rewards.

2. Increased Performance: upon offering employees extrinsic rewards, it can lead to significant improvements in their performance.

3. Motivation for Repetitive Tasks: Monotonous or tedious tasks can be more palatable when there is a tangible reward associated with their completion.

4. Measurable Outcomes: Extrinsic motivation provides a forthright way to measure performance and outcomes.

Pitfalls of Extrinsic Motivation in the Workplace

1. Dependency on Rewards: Employees may become reliant on external rewards and may lose motivation if those rewards are removed.

2. Short-term Focus: Extrinsic motivators can encourage employees to focus on immediate rewards rather than long-term growth and development.

3. Reduced Intrinsic Motivation: Over-reliance on extrinsic rewards can undermine intrinsic motivation, making employees less likely to engage in tasks for their inherent enjoyment.

4. Potential for Unethical Behaviour: In some cases, extrinsic rewards can lead to unethical behaviour if employees focus solely on achieving the reward at any cost.

8 Examples of Extrinsic Motivation in the Workplace

Below are some examples of extrinsic motivation in the workplace:

1. Monetary bonuses: cash incentives are a great driver of motivation. Offering financial bonuses for meeting or exceeding performance targets can be a powerful motivator.

2. Promotions and Raises: Providing opportunities for career advancement and salary increases can motivate employees to perform well.

3. Employee of the Month Programs: Recognizing outstanding employees with awards or public acknowledgment can boost morale and motivation.

4. Performance-Based Rewards: Linking rewards such as gift cards or extra vacation days to specific achievements can drive performance.

5. Non-Monetary Perks: Benefits like flexible working hours, additional vacation time, or company-sponsored events can be strong motivators.

6. Public Recognition: Acknowledging employees' accomplishments in meetings or company newsletters can enhance their motivation.

7. Tangible Rewards: Offering physical items such as gadgets, travel vouchers, or other desirable items can motivate employees to reach specific goals.

8. Training and Development Opportunities: Providing access to professional development courses or certifications as a reward can motivate employees to enhance their skills and knowledge.

How to Use Extrinsic Motivation Effectively

Every employer should be abridged of the importance of extrinsic motivation and how to harness its power most strategically to yield the best results.

Align rewards with company goals: for every goal achieved, there can be a reward attached to it or closely knit to the performance goals you want employees to accomplish.

Engage in regular feedback: giving and receiving feedback helps employees tackle improvement areas, understand where they stand and the prospect of getting bonuses, and rewards keep their motivation high.

Merge with intrinsic motivation: intersectional interplay between intrinsic and extrinsic motivation can be rewarding for the employees. Extrinsic rewards that fuel one’s innate motivation encourage them to do the job well.

Personalize rewards: a rewards system that’s based on individual preferences will surely succeed in boosting job satisfaction and productivity of your workforce.

Avoid over-reliance: a judicious use of an extrinsic rewards system will prevent over- dependence in any case. Remember to use them as a supplement and not a replacement for intrinsic motivation.

A Word From PCS

In any workplace, employees can flourish from the use of extrinsic motivators like money, gift cards, promotions or public praise. One should look for ways to balance extrinsic and intrinsic motivators to maintain long-term productivity and satisfaction at work. To get the maximum results, first reflect on your workplace motivation programs and consider integrating a balanced approach for optimal output.

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