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Unlock the Power of Intrinsic Rewards to Boost Employee Motivation

By Ruth Rusongoza posted 05-14-2025 08:00 AM

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If you want to understand what motivates employees, it’s important to know the difference between extrinsic and intrinsic rewards.

Extrinsic rewards are the type that many people think about first: tangible things like bonuses and raises. These rewards come from the employer, often as incentives.

Intrinsic rewards are internal factors — like pride and satisfaction — that motivate employees to want to complete specific tasks and projects. These rewards come from within rather than from external incentives. Intrinsic rewards also include recognition or non-tangible motivators that help employees feel valued and respected while also inspiring them to perform better.

Workplace Examples

The following gives an overview of intrinsic rewards in the workplace:

Sense of Purpose: This is when Individuals perceive that they have the opportunity to achieve something of genuine value — something that holds relevance in the broader context. There is a perception that one is on a path worthy of their time and energy, which instills a sense of purpose or direction.

Autonomy in Decision-Making: Individuals experience the freedom to determine how to accomplish their work; they utilize their best judgment to select the activities that resonate most with them and to execute them in manners they deem appropriate. There is a feeling of ownership over their work, a conviction in their approach, and a sense of responsibility for its success.

Professional Competency: Employees feel that they are effectively managing their work activities — that their performance meets or exceeds their personal standards, resulting in high-quality outcomes. This fosters a sense of satisfaction, pride, or even artistry in the way they execute these tasks.

Sense of Advancement: Individuals are reassured that their efforts are yielding tangible results. They perceive their work as progressing positively and aligning with desired outcomes. Indicators of success instill confidence and optimism.

How to Promote Intrinsic Rewards

Organizations can develop a culture and way of working that fosters and maintains intrinsic rewards in employees by doing the following:

Foster employee empowerment in their roles. It is important to acknowledge and appreciate the contributions of your employees. Make it a point to express gratitude for their hard work and commitment.

Provide opportunities for professional growth and development. Employees who develop new skills and take on more challenging responsibilities are more likely to become engaged in their work and motivated to pursue ongoing improvement.

Provide increased autonomy and flexibility. Empowering employees by granting them ownership of their work and allowing them to make decisions they believe are most appropriate will cultivate a sense of accomplishment and satisfaction.

By fostering an environment where employees feel supported, valued, and empowered to enhance their own skills, organizations can benefit from increased morale, productivity, and employee retention.

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