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INTRINSIC VS
EXTRINSIC REWARDS
@juliettedenny
MOTIVATION
& REWARD
Motivation is the secret sauce that encourages learners to engage with
your training programme. If your learners aren’t engaged, their
participation and completion rates will be low, their behaviour wont
change and you won’t see meaningful return on your training spend.
There are numerous different ways to create motivation, but they often
come down to providing either the carrot (reward) or the stick
(punishment). Here, we’ll be focusing on the carrot.
After all, the Small Business Chronicle notes that 78% of employees say
that being rewarded makes them feel more productive.
With that in mind, let’s take a look at the two general types of rewards
that can be used to motivate your learners: intrinsic and extrinsic.
INTRINSIC
REWARDS
Intrinsic rewards are, by their nature, non-physical,
intangible and emotionally driven. They’re not the
kind of thing you can see, or touch, but they still
have emotional and motivational power.
They are usually linked to a sense of recognition,
achievement or satisfaction of a job well done.
They are ‘intrinsic’, in the sense that the reward has
come from within the person completing the
activity or displaying the relevant behaviour.
INTRINSIC REWARD
EXAMPLES
Here are some examples of intrinsic rewards:
• The sense of satisfaction we get when we finish
reading a long book.
• The pride we take in doing a job well – especially
if it’s recognised by others.
• The sense of mastery, or self-worth we derive
from improving our knowledge on an important
topic.
EXTRINSIC
REWARDS
As you may have guessed, extrinsic rewards are
physical in nature – they exist outside of the individual
who has completed the activity or displayed the
relevant behaviour. Extrinsic rewards are usually
financial in nature, but that’s not always the case.
What’s important, is that an extrinsically motivated
individual may work on an unengaging task, simply
because of the anticipated satisfaction they will receive
from the offered reward.
EXTRINSIC REWARD
EXAMPLES
Here are some examples of extrinsic rewards:
• Being paid a salary to do a job.
• Being given a certificate once you have completed a
training course.
• Being given a promotion as a result of a job well
done.
WHAT’S BETTER?
PART 1
Whilst both reward types have their place, we focus on
driving intrinsic motivation.
When we choose to act, there is a constant battle raging
in our minds. On one side is the cost of the opportunity
itself – how much of our time is the activity taking up and
would our energy be better spent elsewhere? On the
other side is the utility and the value of the expected
rewards. If the balance isn’t right, then our motivation to
act will be affected.
WHAT’S BETTER?
PART 2
As a result, it’s all too easy to give up on completing boring
tasks, because you’re not being intrinsically motivated. This gap
in motivation often needs to be filled by bigger and better
extrinsic rewards, which can have a major cost impact.
On the flip side, intrinsic rewards are, by their very nature,
more engaging and in the long run are often more cost-
effective.
Indeed, according to Frederick Herzberg, one of the most
influential names in business management, intrinsic rewards
have been proven to carry stronger motivational power than
their extrinsic alternatives.
AN
EXPERIMENT
Providing extrinsic rewards can also lead to long-term
demotivation. Consider this experiment, conducted by
psychologist Edward Deci (who also happens to be one of the
forefathers of Self-Determination Theory).
Two groups were involved in the experiment. Group A played a
game, where they were paid for every puzzle they solved. Group
B played the same game without any monetary reward.
Ultimately, Group A stopped completing puzzles once the
extrinsic reward was removed, whilst many from Group B
continued to complete the puzzles long after the experiment was
over, because their motivation was fuelled by intrinsic rewards.
WHAT THIS MEANS
FOR YOUR LEARNING PROGRAMME
Whilst some extrinsic motivators (such as recognition from
stakeholders, or the virtual rewards offered up within a
gamified solution) may hold value in the online learning
space, providing monetary rewards can often detract from
your long-term engagement plan.
When it comes to learning, it’s pretty clear that intrinsic
motivation is the goal.
If you can achieve that, you’ll be ready to unleash an army
of learning superheroes in no time.
Intrinsic vs Extrinsic Rewards

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Intrinsic vs Extrinsic Rewards

  • 2. MOTIVATION & REWARD Motivation is the secret sauce that encourages learners to engage with your training programme. If your learners aren’t engaged, their participation and completion rates will be low, their behaviour wont change and you won’t see meaningful return on your training spend. There are numerous different ways to create motivation, but they often come down to providing either the carrot (reward) or the stick (punishment). Here, we’ll be focusing on the carrot. After all, the Small Business Chronicle notes that 78% of employees say that being rewarded makes them feel more productive. With that in mind, let’s take a look at the two general types of rewards that can be used to motivate your learners: intrinsic and extrinsic.
  • 3. INTRINSIC REWARDS Intrinsic rewards are, by their nature, non-physical, intangible and emotionally driven. They’re not the kind of thing you can see, or touch, but they still have emotional and motivational power. They are usually linked to a sense of recognition, achievement or satisfaction of a job well done. They are ‘intrinsic’, in the sense that the reward has come from within the person completing the activity or displaying the relevant behaviour.
  • 4. INTRINSIC REWARD EXAMPLES Here are some examples of intrinsic rewards: • The sense of satisfaction we get when we finish reading a long book. • The pride we take in doing a job well – especially if it’s recognised by others. • The sense of mastery, or self-worth we derive from improving our knowledge on an important topic.
  • 5. EXTRINSIC REWARDS As you may have guessed, extrinsic rewards are physical in nature – they exist outside of the individual who has completed the activity or displayed the relevant behaviour. Extrinsic rewards are usually financial in nature, but that’s not always the case. What’s important, is that an extrinsically motivated individual may work on an unengaging task, simply because of the anticipated satisfaction they will receive from the offered reward.
  • 6. EXTRINSIC REWARD EXAMPLES Here are some examples of extrinsic rewards: • Being paid a salary to do a job. • Being given a certificate once you have completed a training course. • Being given a promotion as a result of a job well done.
  • 7. WHAT’S BETTER? PART 1 Whilst both reward types have their place, we focus on driving intrinsic motivation. When we choose to act, there is a constant battle raging in our minds. On one side is the cost of the opportunity itself – how much of our time is the activity taking up and would our energy be better spent elsewhere? On the other side is the utility and the value of the expected rewards. If the balance isn’t right, then our motivation to act will be affected.
  • 8. WHAT’S BETTER? PART 2 As a result, it’s all too easy to give up on completing boring tasks, because you’re not being intrinsically motivated. This gap in motivation often needs to be filled by bigger and better extrinsic rewards, which can have a major cost impact. On the flip side, intrinsic rewards are, by their very nature, more engaging and in the long run are often more cost- effective. Indeed, according to Frederick Herzberg, one of the most influential names in business management, intrinsic rewards have been proven to carry stronger motivational power than their extrinsic alternatives.
  • 9. AN EXPERIMENT Providing extrinsic rewards can also lead to long-term demotivation. Consider this experiment, conducted by psychologist Edward Deci (who also happens to be one of the forefathers of Self-Determination Theory). Two groups were involved in the experiment. Group A played a game, where they were paid for every puzzle they solved. Group B played the same game without any monetary reward. Ultimately, Group A stopped completing puzzles once the extrinsic reward was removed, whilst many from Group B continued to complete the puzzles long after the experiment was over, because their motivation was fuelled by intrinsic rewards.
  • 10. WHAT THIS MEANS FOR YOUR LEARNING PROGRAMME Whilst some extrinsic motivators (such as recognition from stakeholders, or the virtual rewards offered up within a gamified solution) may hold value in the online learning space, providing monetary rewards can often detract from your long-term engagement plan. When it comes to learning, it’s pretty clear that intrinsic motivation is the goal. If you can achieve that, you’ll be ready to unleash an army of learning superheroes in no time.