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Extrinsic and Intrinsic Rewards

No discussion of motivation would be complete without considering rewards. Let’s add two kinds of rewards, extrinsic and intrinsic. Extrinsic rewards are tangible and visible to others and are given to employees contingent on the performance of specific tasks or behaviors. External agents (managers, for example) determine and control the distribution, frequency, and amount of extrinsic rewards, such as pay, company stock, benefits, and promotions. Intrinsic rewards are the natural rewards associated with performing a task or activity for its own sake. A number of surveys suggest that both extrinsic and intrinsic rewards are important and that employee preferences for either intrinsic or extrinsic rewards are relatively stable. A 2016 Society for Human Resource Management national survey found that three extrinsic factors—pay, benefits, and job security/organizational financial stability—and four intrinsic fac-tors—respectful treatment of employees, trust in senior management, relationships with immediate supervisors, and the chance to use one’s skills and abilities in your work—were among the top factors rated as “very important” by employees.