Intrinsically motivated employees deliver better performance. There are times when a high salary and numerous bonuses and perks are not enough to maintain employee motivation. How will such incentives matter if the person does not feel satisfaction or motivation after the completion of his task? As a professional, we must have felt satisfied or proud after completing a task. This feeling of accomplishment comes from within, and we refer to it as an intrinsic reward.
What Is an Intrinsic Reward? Definition and Meaning
Define Intrinsic Rewards
If we were to define intrinsic rewards in the simplest way, they are the internal psychological rewards employees experience when doing meaningful work. Unlike money or perks, intrinsic rewards come from within. What is an intrinsic reward? It is the pride, joy, or satisfaction a person feels when they achieve something challenging, learn a new skill, or contribute to a bigger purpose at work. In the context of employee motivation, these rewards are tied to feelings of autonomy, mastery, and purpose, which directly influence job satisfaction and workplace engagement.
Intrinsic rewards are the internal psychological benefits employees experience from their work. Unlike extrinsic incentives such as money, bonuses, or prizes, intrinsic rewards stem from the satisfaction, enjoyment, and fulfilment a person experiences while doing the work itself. These rewards are self-generated and often reflect feelings of competence, autonomy, pride, and purpose. When employees ask, What is an intrinsic reward?, the answer is simple: it’s the joy, motivation, and sense of achievement that comes from within, not from external perks.
One of the most effective types of intrinsic rewards in the workplace is intrinsic recognition. It occurs when workers feel internally proud after receiving recognition that validates their worth, abilities, or contributions. In contrast to external acknowledgment that is linked to benefits or cash, intrinsic recognition is based on trust, respect, and gratitude.
Peers recognizing someone’s ingenuity, a management publicly complimenting a team member’s problem-solving abilities, or an employee feeling privileged to mentor others are all examples of intrinsic incentives through recognition. These experiences are inherently fulfilling because they offer psychological benefits that boost self-esteem and increase involvement. Building an inclusive culture that values meaningful work, employee engagement, and long-term performance requires intrinsic recognition.
Intrinsic incentives are very different from traditional external incentives like bonuses or gift cards. They are not tangible objects but deeply personal motivators. For example, an employee who takes pride in solving a difficult problem or feels valued when trusted with autonomy is experiencing intrinsic incentives. These incentives come from internal motivation and align closely with self-determination theory, which explains that people perform best when they feel competent, connected, and in control of their work. While extrinsic rewards meet financial needs, intrinsic incentives drive long-term performance and create more meaningful work experiences.
What is the difference between Extrinsic vs Intrinsic rewards?
Extrinsic rewards are something which are tangible in nature such as a bonus, incentive, monetary perks and more. Although intrinsic rewards differ from extrinsic rewards in nature, they are equally motivating for employees. While intrinsic rewards are self-driven, extrinsic rewards are motivated by external factors such as money or tangible rewards.
Examples of Intrinsic Rewards for Employees
Intrinsic rewards in the workplace take many forms and often go unnoticed because they are deeply personal and subjective. Here are some practical intrinsic rewards examples for employees:
Personal Achievement Rewards
- A strong sense of accomplishment after completing a challenging project.
- Pride in mastering a new skill, tool, or competency that adds value to their role.
- Deep satisfaction from solving a complex problem that others struggled with.
Recognition-Based Intrinsic Rewards
- Public acknowledgment of expertise and contributions makes employees feel valued and appreciated.
- Peer recognition for innovative ideas or solutions that improved work outcomes.
- Leadership opportunities that highlight their abilities and allow them to inspire others.
Growth-Oriented Intrinsic Rewards
- Opportunities for creative expression that allow employees to think beyond boundaries.
- Autonomy in decision-making processes, giving them ownership of outcomes.
- The joy of mentoring colleagues and sharing knowledge that helps others grow.
These intrinsic reward examples show that motivation doesn’t always come from financial gain. Often, the most powerful incentives are intangible, like purpose, recognition, and personal growth, which are deeply tied to employee performance and long-term engagement.
Benefits and Advantages of Intrinsic Rewards
The advantages of intrinsic rewards go much deeper than temporary boosts in productivity. When employees feel intrinsically rewarded, they are driven by internal motivation and the satisfaction that comes from meaningful work. This not only improves employee performance but also creates long-lasting engagement and loyalty within the workplace.
1. Builds Persistence
Employees who enjoy their work naturally develop persistence. They are willing to take on challenges and go beyond what is required because they feel intrinsically motivated. This resilience strengthens both individual growth and team performance.
2. Higher level of engagement
Intrinsic rewards in the workplace foster genuine involvement. When work brings happiness and purpose, employees engage at a level that cannot be achieved through financial incentives alone. This deeper workplace engagement results in stronger collaboration and innovation.
3. Improves Learning and Growth
Employees who are intrinsically motivated see learning as part of their personal journey rather than just a requirement for career advancement. They are eager to upskill, reskill, and master new competencies because it brings them recognition, self-confidence, and pride. This makes continuous development an intrinsically rewarding process.
4. Better performance
Intrinsic rewards and employee performance are closely connected. Employees who immerse themselves in tasks they enjoy are more focused, creative, and productive. Since their motivation is internal, they require less monitoring and deliver consistent results.
5. Enhanced Job Satisfaction
One of the greatest advantages of intrinsic rewards is the sense of fulfillment employees experience in their daily work. Meaningful work boosts job satisfaction and reduces burnout, nurturing a healthier and more positive workplace culture.
6. Improved Employee Retention
Employees who feel intrinsically rewarded are less likely to leave. They view their roles as opportunities for growth and meaningful contribution rather than just jobs. This makes intrinsic rewards a critical factor in long-term employee retention.
7. Boosted Creativity and Innovation
When people work for enjoyment and pride rather than only financial gain, they are more open to experimenting, generating fresh ideas, and solving problems in innovative ways. Intrinsic incentives naturally fuel creativity across the organization.
8. Builds Loyalty and Organizational Commitment
Intrinsic rewards encourage employees to build stronger bonds with their teams and the organization. Motivated and contented workers show higher loyalty, which lowers turnover and creates a more stable team.
Motivational Benefits of Intrinsic Rewards
1. Creating a sense of purpose at the job
Unless we link the task or job to the larger purpose of the organisation and what the company stands to achieve with the same, a sense of purpose does not come. It is challenging for the employees to understand how they are contributing to the larger goal of the organisation. If a sense of purpose is missing, it remains a mere job for the individual.
2. Find out what motivates employees from inside
Every individual will have a different trigger to intrinsically motivate oneself. Some want to grow in their career and want to get into leadership positions, and others may just want to be specialists in what they do. Some might want to lead teams, and others may just want to be individual contributors. HRs can assimilate the motivating factors through internal surveys and research and build their engagement strategy.
3. Giving Free Time
Allowing some freedom to employees is important to give autonomy to employees. For instance, 3M, an American-based conglomerate, gives 15% of employees time to spend on projects in which they want to work. This allows them to work on tasks which give them joy and satisfaction.
4. Implement an employee voluntary programme
An employee voluntary programme gives an opportunity to the employee to give back something to the community. This helps in building a sense of purpose in an individual’s life. It will allow the person to have some purpose in life which will also help them in having a higher level of engagement at work.
5. Continuous Learning
When people are learning and upskilling & reskilling themselves continuously, they feel more engaged at their work. Giving them opportunities to keep learning new skills at their present role or also creating opportunities to build a career in a different field motivates the employee from inside. For instance, if the company can invest in an employee’s higher education, it helps the employee to move up in his/her career.
Intrinsic Rewards in the Workplace: Implementation Strategies
Bringing intrinsic rewards into the workplace is about making people feel that their work matters and giving them the space to grow. Here are some simple but powerful ways companies can do this:
- Connect Work to Purpose: People want to know that what they do makes a difference. When employees see how their daily tasks tie into the bigger mission, the work itself becomes more meaningful and intrinsically rewarding.People put in more effort when they enjoy and believe in their work.
- Give Autonomy and Flexibility: Trusting employees to make decisions about how they work is one of the strongest intrinsic incentives. Whether it’s flexible hours or ownership of a project, autonomy builds confidence and sparks motivation from within.
- Encourage Learning and Growth: Employees are more engaged when they can keep learning. Offering training, mentorship, or even small stretch projects gives them the chance to build new skills and feel proud of their progress.
- Recognize Efforts in Genuine Ways: A sincere thank-you or peer recognition can be just as powerful as a bonus. Intrinsic recognition helps employees feel valued and respected, creating lasting psychological rewards that fuel engagement.
- Open Doors to Creativity: Let employees share ideas, experiment, or work on passion projects. Having space for creativity makes work more enjoyable, intrinsically rewarding, and often leads to fresh innovations for the company.
- Support Social Impact: Many employees feel proud when their work contributes to something bigger than business results. Volunteer opportunities or community projects give them meaningful work experiences that strengthen loyalty and retention.
When companies nurture these intrinsic rewards, they build more than just performance. They create a workplace where employees feel motivated from within, engaged in their roles, and committed for the long term.
Intrinsic vs Extrinsic Rewards Comparison
|
Aspect |
Intrinsic Rewards |
Extrinsic Rewards |
|
Definition |
Internal psychological benefits such as satisfaction, pride, and purpose |
Tangible benefits like salary, bonuses, incentives, or prizes |
|
Examples |
Sense of accomplishment, autonomy, recognition from peers, creative expression |
Pay raises, promotions, performance bonuses, vouchers |
|
Motivational Source |
Comes from within the individual and their passion for work |
Driven by external factors provided by the organization |
|
Impact on Performance |
Encourages long-term engagement, persistence, and self-improvement |
Provides short-term motivation and recognition |
|
Connection to Employees |
Builds loyalty, fulfillment, and personal growth |
Meets financial and material needs |
Frequently Asked Questions About Intrinsic Rewards
What is an intrinsic reward?
An intrinsic reward is the inner sense of satisfaction, purpose, or pride an employee feels when completing meaningful work. It is not about money or perks but about the joy of doing something well. For example, solving a tough problem or mentoring a teammate can be intrinsically rewarding because it provides personal fulfillment and a sense of achievement.
What are intrinsic rewards examples in the workplace?
Examples of intrinsic rewards in the workplace include the pride an employee feels after delivering a successful project, the autonomy to make decisions, or the excitement of learning a new skill. Employees may also feel intrinsically rewarded when their creativity is valued, when they receive peer recognition, or when they see the impact of their work on the company’s success.
What are the motivational benefits of intrinsic rewards?
The motivational benefits of intrinsic rewards are powerful because they keep employees engaged even without external incentives. Employees who are intrinsically motivated tend to show persistence, deliver higher performance, and embrace learning opportunities. These rewards also improve creativity, help employees feel more connected to their purpose, and foster long-term loyalty toward the organization.
How do intrinsic rewards differ from extrinsic rewards?
Intrinsic rewards are psychological benefits like personal satisfaction, enjoyment, and purpose, while extrinsic rewards are tangible benefits such as salary increases, bonuses, or gift cards. Both are important, but intrinsic rewards in the workplace tend to drive deeper engagement and long-term motivation, whereas extrinsic rewards provide short-term boosts tied to external recognition or financial gain.
In spite of this, people still debate whether intrinsic or extrinsic rewards are more important. Each employee reward system has its own value. Even an employee working in the banking or financial sector also needs intrinsic rewards in addition to tangible rewards in order to remain motivated at work. On the other hand, a writer or a designer who loves his/her job also wants monetary rewards to sustain and see monetary growth.
