“Intrinsic rewards and motivation come from within you and are powered by your own dreams, aspirations, wants, and wishes.”
The intrinsic rewards are internally based and are, therefore, sometimes also referred to as internal rewards. They are the opposite of their externally based counterpart, the extrinsic rewards.
An example of internal rewards could be inner satisfaction after accomplishing a difficult task. On the contrary, an external-based reward involves a tangible reward.
It is essential to learn the concept of intrinsic rewards, motivation, and the advantages and disadvantages of intrinsic motivation.
Intrinsic motivation offers several advantages; the advantages of intrinsic motivation are more than the disadvantages of intrinsic motivation.
Firstly, it fosters a more profound and lasting commitment to a task or goal, as individuals are driven by their genuine interest and enjoyment.
It often leads to increased creativity and problem-solving skills, as people are more likely to explore innovative solutions when motivated by curiosity.
Moreover, intrinsic motivation can enhance overall well-being and satisfaction as individuals experience a sense of autonomy and personal growth.
However, there are also drawbacks to concentrating on the pros and cons of intrinsic motivation and relying solely on intrinsic motivation. This motivation can be inconsistent, as it relies on an individual’s internal drive, which may fluctuate over time.
Striking a balance between intrinsic and extrinsic motivation can often yield the most effective results in various aspects of life.
This article discusses the advantages and disadvantages of rewards for its readers as follows:
What are the intrinsic and extrinsic rewards?
The difference between the two terms is that intrinsic refers to something internal, while extrinsic refers to something external.
An intrinsic reward is essentially an intangible form of reward.
So, its example could be an inner feeling of satisfaction and achievement. It also implies that such rewards that one receives are internal and self-earned and not provided by an entity outside of an individual.
The extrinsic rewards are tangible and physical. Such rewards carry much more significance in the real world than internally based rewards. Also, external rewards are given from an outside entity to recognize some achievement.
What does intrinsic reward mean?
An example of intrinsic motivation is when an individual learns French because it appeals to them and not for any economic reason whatsoever.
An intrinsic reward is a psychological feeling. Hence, workplace intrinsic motivation examples include recognition, inspiration, a joy to work, etc.
In addition to this, the rewards of teaching include a feeling of positivity, constructiveness, a greater good, etc.
Examples of intrinsic rewards
Internal rewards can mean different things for different individuals. However, some of the most common examples of such rewards are:
- If an employee puts in extra effort in their work to not earn any credit or reward but an inner appraisal, then it could be one example of internal rewards.
- When an individual helps someone, it leads them to a good inner feeling if the act is based on empathy and not for others to know. And this could be one of the examples of rewards.
- Some other examples of rewards may include self-accomplishment, enjoying one’s work, etc.
Read More: 5 Intrinsic vs. Extrinsic Rewards to Improve Employee Engagement
Advantages and disadvantages of intrinsic rewards
Advantages
Rewards lead to several benefits. Some of them are below:
Persistence
One of the primary internal rewards of having an internal motivation is persistence.
Individuals with internal motivation are much more likely to be persistent in their actions than those who get inspiration from external rewards.
It is because performing such an action entails joy and self-satisfaction. Thus, continuously performing them is no surprise.
Engagement
A task that involves rewards will engage its performer more towards it.
When we perform a task that makes us happier from the inside, we tend to repeat that on a regular interval, resulting in persistence.
And it also leads us to become more engaged with the task, which gives us a sense of joy.
Efficiency in learning
Learning a new skill requires a fair amount of internal and external motivation.
Nevertheless, learning a skill that entails rewards may make us learn a new skill efficiently and quickly.
So, retaining the knowledge from a new skill may become more likely with internal rewards than external ones.
Higher levels of performance
It should be no surprise that intrinsic motivation and rewards lead to elevated performance levels.
When we have an intrinsic motivation for an assignment, we put in more effort than any other task. It results in high-quality work, resulting from an intrinsic drive for it.
Loyalty and dedication
In an organization where employees receive rewards for doing their job, they may become more loyal than the employees with no such rewards or motivation.
Such employees are also likely to work longer for the company and work with greater dedication.
Disadvantages
There are no considerable disadvantages of intrinsic rewards and determining disadvantages can be challenging because intrinsic rewards are often considered inherently positive motivators.
However, while it can significantly self-sustain, it still has a few shortcomings. Some of its disadvantages are below:
- Rewards may lead an individual to ignore the standards of safety. Thus, a person may work insanely towards something they are passionate about.
- Such rewards give a person an internal sense of satisfaction and accomplishment at every step. However, this self-induced euphoria does not help in clearly defining the end goal and result, which is generally an extrinsic reward.
- More often than not, an individual with intrinsic motivation works to achieve rewards. However working solely to earn internal rewards may not be ideal in the practical and real world, where monetary rewards carry their importance.
Bottomline
Intrinsic rewards are exciting human psychological phenomena.
Every human has an internal motivation to earn intrinsic rewards. And while some may consider it not as worthwhile, achieving an external endeavor first requires an individual to have an internal drive for internal rewards.
As for organizations, there is no substitute for internally motivated employees. It is so because the work of such employees is driven from the inside and not by an outside reward or motivation.
Nevertheless, providing your intrinsically motivated employees with extrinsic rewards can further their loyalty to the organization.
And so, you can make use of BRAVO, which is extremely helpful in motivating employees (externally as well) by helping you reward and recognize them effectively.
Book an entirely free demo of Bravo to practically understand its efficiency in this regard.
Frequently Asked Questions
Intrinsic rewards are internal psychological benefits employees experience from their work, including feelings of accomplishment, personal growth, and meaningful contribution. According to a 2023 Gallup study, employees who experience regular intrinsic rewards show 43% higher retention rates than those who don’t. Unlike extrinsic rewards (pay, bonuses), intrinsic motivation comes from within and connects to an individual’s personal values and satisfaction.
Intrinsic rewards boost employee retention by creating deeper psychological engagement with work. Research from the Harvard Business Review shows organizations with strong intrinsic reward systems experience 31% lower turnover rates. When employees find personal meaning, autonomy, and growth opportunities in their roles, they develop stronger organizational commitment. The internal satisfaction from achievement and purpose fulfillment creates emotional bonds that financial incentives alone cannot match.
Yes, over-reliance on intrinsic rewards can sometimes backfire. According to MIT’s Sloan Management Review, approximately 22% of high-performing employees report feeling burned out when intrinsic motivation is excessively emphasized without adequate extrinsic support. This happens when organizations use personal fulfillment as a substitute for fair compensation, when perfectionism is triggered by achievement-based intrinsic rewards, or when employees’ personal values misalign with organizational goals.
Intrinsic rewards are internal psychological benefits experienced directly from the work itself, while recognition is an external acknowledgment of performance. The Society for Human Resource Management distinguishes that recognition comes from others, while intrinsic rewards emerge from personal accomplishment feelings. Though related, they function differently—recognition can activate intrinsic rewards by validating achievement, but intrinsic rewards exist independently of external validation.
Managers can implement effective intrinsic reward systems by connecting work to meaningful purpose, providing autonomy, ensuring skill-challenge balance, and celebrating progress. McKinsey research demonstrates that managers who regularly discuss meaningful impact with their teams see 27% higher intrinsic motivation levels. The key is personalizing approaches—understanding what drives individual team members and creating environments where they can experience autonomy, mastery, and purpose in their daily work activities.
Research shows generational differences exist in intrinsic reward preferences, but individual variations matter more. According to Deloitte’s Workplace Motivation Study, 76% of Gen Z and Millennials prioritize purpose and growth opportunities, compared to 64% of Gen X and Baby Boomers. However, PwC findings demonstrate that intrinsic motivation factors remain powerful across all age groups when aligned with personal values. The effectiveness depends more on individual personality traits and values than generational categories.
The optimal approach combines both reward types, tailored to individual preferences and organizational context. Research from the Journal of Organizational Behavior indicates that organizations achieving a 60/40 balance between intrinsic and extrinsic motivators see 37% higher performance outcomes. Strategic integration involves ensuring fair extrinsic compensation while creating conditions for autonomy, mastery, and purpose. Regular assessments of employee motivation profiles help organizations adjust this balance for different roles and individuals.
