Extrinsic Rewards
Extrinsic Rewards
are usually financial or tangible rewards given to employees, such as pay raises,
bonuses, and benefits.
They are extrinsic because they are external to completing the work itself and are controlled by
people other than the employee.
They can be essential in jump-starting initial buy-in or participation from people in the initial
stages of readiness to change (pre-contemplation or contemplation).
They usually have limited impact over time if they are not increased.
They are a powerful lever to reinforce and drive the behaviors that a culture values most but
wouldn’t be the norm without. (e.g. sales commissions, performance bonuses, etc.)
Think of them as a defibrillator to a stopped heart. Their job is to get the heart beating on
its own
Extrinsic rewards are still often utilized in many workplaces for a variety of tasks and
accomplishments, but when they're intended to boost or sustain employee involvement in things like
personal well-being, the results can be transient for the majority of people.
Once more, the external motivator's role is to stimulate the "heart" so that it begins to beat on its own,
much like a defibrillator. A stopped heart requires an external shock from a defibrillator or
compressions from CPR to start beating again, but if it does so on its own, further shocks are not
necessary
When an extrinsic incentive motivates someone to engage, the window for continuous engagement is
constrained if the person doesn't discover an internal motivation to do so. It's important to shift from
external to internal motivation.
Employees prefer to only take on additional responsibility or, dare we say it, do the right thing in
challenging circumstances if they will receive an external incentive or payback in contexts where the
culture isn't grounded in the list of Deci and Ryan's motivations. Employees could put in extra effort
in the short term to avoid a bad outcome, but over time, this can lower engagement and job
satisfaction, leading to burnout and turnover.
In conclusion, it is possible to engage staff in a short-term situation and motivate them towards a goal
by using extrinsic rewards and motivators. Employee engagement, particularly in the area of personal
wellbeing, may suffer in the long run if the intrinsic motivation to achieve new goals or the same
goals over time is not formed or does not exist in the absence of an extrinsic reward that was once
present.