Intrinsic reward definition

/

What is an Intrinsic Reward?

An intrinsic reward is the sense of satisfaction that an employee feels when performing a specific task. Intrinsic rewards are especially effective when one-off tasks are being completed, typically which are considered to be unusually challenging for an employee. Here are several ways to promote the effects of intrinsic rewards:

  • Set many short-term goals, so that employees get to experience an ongoing series of rewards as each successive goal is met.

  • Maintain project staffing all the way to the end, so that employees can experience the satisfaction of a job well done at the end of the project.

  • Thank employees for their efforts, especially when they are working through a rough patch. Doing so highlights the fact that they are appreciated.

  • Break up the day with lighthearted events, such as the occasional beer bash, barbeque, movie, or oddball competition.

  • Impose fewer supervisors on the workforce, so that employees can work with each other directly, without managers filtering the information coming and going through functional silos.

Related AccountingTools Courses

New Manager Guidebook

Understanding Organizational Behavior

Advantages of Intrinsic Rewards

Intrinsic rewards are an excellent way to motivate employees, especially because they are inexpensive or free. This is better than extrinsic rewards, which typically involve the payment of some form of compensation to employees. In addition, the proper application of intrinsic rewards tends to result in less employee turnover, as well as more employee engagement with their work.

Disadvantages of Intrinsic Rewards

There are several disadvantages associated with intrinsic rewards. One is that employees may not see the value in a specific task, and so will shun it in favor of other activities that do provide them with an intrinsic reward. A second issue is that some employees will see an intrinsic reward in an activity, while others will not - which results in varying levels of commitment to tasks. A third concern is that intrinsic rewards do not necessarily align with the goals of the employer, so some employees may end up working hard in areas that are not of great strategic or tactical interest to their employer.

Example of an Intrinsic Reward

As an example of an intrinsic reward, a person is assigned the task of developing a completely integrated warehousing solution for a company that has been suffering from using several separate warehousing software applications. Successfully completely this project represents a major accomplishment for the employee.