Intrinsic rewards
Intrinsic rewards are typically internal, meaning they come from within the employee and are related to effort and ability. These types of rewards provide a sense of accomplishment which increases employee motivation.
Intrinsic rewards are more about self-fulfilling or self-satisfying needs because they are internal and don't depend on external factors for their fulfillment. For example, a worker may be motivated by the challenge of a particular job assignment or task or the opportunity for self-development, such as climbing the career ladder.
What are intrinsic rewards?
Intrinsic rewards are internal factors that motivate employees to want to complete specific tasks and projects. These rewards are imparted by the psychological nature of our abilities, feelings, and actions. They include such things as personal satisfaction, pride, and self-esteem.
Intrinsic rewards are also called self-fulfilling or self-satisfying needs because they are internal and do not depend on external factors for their fulfillment.
For example, a worker may be motivated by the challenge of a particular job assignment or task, or the opportunity for self-development such as climbing the career ladder.
Why are intrinsic rewards important?
People seek to feel a sense of accomplishment, grow and contribute. Intrinsic rewards programs build teams that connect and work together, encourage open communication and collaboration, and promote a mutual trust between employees.
The other benefits of intrinsic rewards are:
- Intrinsic rewards provide employees with an inner drive to pursue an activity that makes them feel happy and satisfied, which in this case is their job and the responsibilities associated with it.
- This kind of reward has a long-lasting effect on your employees as it impacts their psychological and emotional well-being. A study shows that people who enjoy their work are more productive than those who don't like what they do.
- It also helps the employer by increasing the productivity of his employees and making them happier at work. This leads to lower attrition rate and higher retention rates among your workforce which can be very beneficial for any organization.
- Rewarding employees with intrinsic rewards is a great way to keep them loyal to the company. It forms a bond between the employees and their duties, which encourages them to do their best at work and be more loyal to the organization.
When should intrinsic rewards be used in the workplace?
In the current workplace environment, many employees feel overworked and underappreciated. This can lead to a demotivation spiral and poor performance. Intrinsic rewards can be applied by organizations in such cases and they are an effective way to improve performance. Intrinsic rewards are the best motivation and an employee's core motivator. By changing the focus to the internal rewards of a task, such as satisfaction and enjoyment, you can better motivate yourself and others.
How does intrinsic reward work?
The way intrinsic motivation works is pretty simple. Instead of motivating yourself to achieve an external reward, you focus on the internal rewards of a task.
This type of motivation tends to work with long term projects that don't offer immediate results. Intrinsic rewards are usually associated with happiness, mental stimulation and fun. It can also be used to motivate others if you tell them about the rewards they'll receive from a project instead of telling them what you'll reward them with.
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What are the different types of intrinsic rewards?
The five main types of intrinsic rewards are:
- Autonomy: People who have autonomy or independence experience a sense of freedom because they have control over their actions and don’t feel like they have to do something they don’t want to do. Examples include people who work from home, create their own schedules, or work in teams that give them independence in decision making.
- Mastery: People who experience mastery enjoy the process of learning something new or improving their skills at a task. Examples include people who love learning new things or those who enjoy solving puzzles and mastering new skills.
- Purpose: People who feel like what they’re doing has meaning also experience intrinsic rewards because their jobs align with their values and goals. Examples include social workers, teachers, therapists, nurses, doctors, and other service workers who help others because it makes them feel good about themselves knowing that they are making a difference in someone else’s life.
- Relatedness: People who experience connectedness with others also experience intrinsic rewards because they make connections with others on an emotional level that makes them feel good about themselves (i.e., helping others).
- Self Determination: The desire for freedom, independence, and autonomy over one's own life choices. This means having control over when you work, where you work and how you work as long as the result gets the job done well. If your employees have a say in their day-to-day work lives, they will feel more fulfilled by what they do each day and more motivated to do it well.
What are the advantages of intrinsic rewards?
The advantages of intrinsic rewards:
- Long-term motivation
- Increased retention and reduce turnover
- Stronger brand loyalty
- Quick and easy to implement
- Increase productivity and performance
Employee pulse surveys:
These are short surveys that can be sent frequently to check what your employees think about an issue quickly. The survey comprises fewer questions (not more than 10) to get the information quickly. These can be administered at regular intervals (monthly/weekly/quarterly).
One-on-one meetings:
Having periodic, hour-long meetings for an informal chat with every team member is an excellent way to get a true sense of what’s happening with them. Since it is a safe and private conversation, it helps you get better details about an issue.
eNPS:
eNPS (employee Net Promoter score) is one of the simplest yet effective ways to assess your employee's opinion of your company. It includes one intriguing question that gauges loyalty. An example of eNPS questions include: How likely are you to recommend our company to others? Employees respond to the eNPS survey on a scale of 1-10, where 10 denotes they are ‘highly likely’ to recommend the company and 1 signifies they are ‘highly unlikely’ to recommend it.
Based on the responses, employees can be placed in three different categories:
- Promoters
Employees who have responded positively or agreed. - Detractors
Employees who have reacted negatively or disagreed. - Passives
Employees who have stayed neutral with their responses.
What are the disadvantages of intrinsic rewards?
The disadvantages of intrinsic rewards are:
- The more you have, the less effective they become.
- They can be harder to measure than extrinsic rewards.
- They can lead to a lack of motivation if they are not seen as fair or socially valued by others.
- They are not guaranteed to be consistent.
- They take a long time to develop.
What are the examples of intrinsic rewards?
Some of the common intrinsic rewards examples in the workplace are:
- Autonomy
- Pride in your work
- Respect you receive from coworkers or your superiors
- Personal development
- Gaining the supervisors' trust
- Working enjoyable jobs
- A sense of achievement
- A sense of purpose
- Gaining new knowledge or increasing one's expertise in a particular field
- Letting workers pick the projects they work on
- Participating in a team
What is the difference between intrinsic and extrinsic rewards?
Intrinsic and extrinsic rewards are both important when motivating employees to perform better on a job. An intrinsic reward is a personal benefit that comes from doing something you enjoy while an extrinsic reward comes from external sources such as money, status, or perks.
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