Extrinsic x Intrinsic Motivation

In this article, I want to talk about something that makes all the difference in our day-to-day as leaders: intrinsic and extrinsic motivation. Have you ever felt that something’s not quite right in your team, but you can’t pinpoint exactly what it is? Well, we might be dealing with this dilemma without realising it! 

Motivation is one of the most important drivers for any team’s performance. When we truly understand how different types of motivation work and how to apply them, we open the door to better results—not only in terms of productivity but also in personal satisfaction and continuous growth. That’s why understanding the differences between extrinsic and intrinsic motivation can be the turning point in transforming the workplace and boosting everyone’s energy and dedication. 

Extrinsic vs. Intrinsic Motivation 

Let’s break it down: 

1. Extrinsic Motivation: This comes from external sources, like a pay rise, a bonus, or praise from the boss. This type of motivation relies on external incentives and is directly linked to material rewards or recognition from others. It’s typically the type of motivation we see when setting monthly sales targets or offering prizes for hitting certain goals.
2. Intrinsic Motivation: This comes from within—when someone does something because they enjoy it or believe in it. It’s connected to the sense of personal achievement, the pleasure of doing a job well, or the purpose of contributing to something greater. It’s that genuine feeling of satisfaction from knowing your work has an impact, and that you’re growing and developing as both a person and a professional.

Why Does This Matter? 

As leaders, we always want the best from our team. But sometimes, we end up focusing solely on extrinsic motivation. You know that “if you do X, you get Y” approach? It doesn’t always work as we’d expect. It’s easy to fall into this trap because it seems like a quick, straightforward solution to boost performance. However, true motivation—the kind that sustains engagement in the long term—comes from a much deeper place. When we understand the difference and learn to apply the right type of motivation, we can create a much healthier and more stimulating work environment. 

The Problem with Extrinsic Motivation 

It’s not bad, but it has its limitations: 

1. Temporary Effect: Motivation generated by external rewards tends to be short-lived. Someone might feel excited when they receive a bonus or praise, but that effect is fleeting. Without ongoing rewards, enthusiasm soon fades, and the desired behaviour may not last. This means external incentives need constant renewal, which can become exhausting for both the leader and the employee.
2. It Becomes an Obligation: Over time, what was once a reward starts to feel like an obligation or a right. The initial surprise wears off, and people begin to expect the reward as guaranteed. This creates a cycle where the focus shifts from growth or performance to simply obtaining the next reward. As a result, motivation loses its incentive power and becomes almost a psychological contract, which can be problematic when resources or rewards aren’t available as frequently.
3. Stifles Creativity: When people focus only on earning a specific reward, they limit themselves to doing the bare minimum to achieve it. This reduces initiative and creativity, as the goal becomes just getting the prize, not necessarily doing excellent work or exploring new ideas. In situations where innovation and creative thinking are essential, this kind of motivation can be extremely detrimental. The quest for a reward can stifle the desire to take risks and try something new, as the focus becomes sticking to the safe path that leads to the prize, without much experimentation.

The Power of Intrinsic Motivation 

When we tap into intrinsic motivation, things shift dramatically: 

1. It Lasts Longer: Intrinsic motivation doesn’t depend on external rewards, so it lasts longer. People do things because they enjoy them, without needing constant stimuli. This means that even in tough times or with more challenging tasks, the employee finds the energy to keep going because they are driven by an internal purpose. This type of motivation fosters much more sustainable engagement over time, regardless of external rewards or incentives.
2. It Brings Real Satisfaction: The satisfaction that comes from intrinsic motivation is genuine. The work itself is rewarding because the person feels they are learning, growing, and contributing in a meaningful way. This creates a positive cycle where the more someone dedicates themselves and gets involved, the more rewarding the work becomes, which in turn motivates them to continue putting in effort and striving for improvement.
3. It Enhances Creativity: Without the pressure of rewards, there’s more freedom to innovate. When people are motivated by an inner desire to do well, they feel more free to experiment, take risks, and think outside the box. This contributes to an environment where ideas flow and innovation happens naturally. The absence of pressure to win a specific prize allows people to focus on the quality and originality of the work, rather than simply following a formula that guarantees a reward.

How to Apply This in Daily Leadership? 

Here are a few practical tips: 

1. Know Your Team: Understand what truly motivates each person. This requires honest conversations, listening to what everyone has to say, and being open to understanding the values and interests of each team member.
2. Give Autonomy: Let people make decisions about their work. When team members have the autonomy to determine how they’ll do their tasks, they feel more responsible and committed to the outcome.
3. Offer Challenges: Tasks that challenge and foster growth are highly motivating. Offering challenges that align with each person’s capabilities and potential for growth is a great way to keep the team engaged.
4. Show the Purpose: Explain how each person’s work impacts the bigger picture. When people understand the “why” behind what they’re doing, they become more motivated and engaged.
5. Create a Positive Environment: Happy people work better—simple as that! Encourage a culture of support where well-being is a priority.

Common Mistakes (I’ve Made These Too, I Confess!) 

1. Thinking money solves everything.
2. Ignoring differences.
3. Forgetting to recognise achievements.
4. Focusing solely on results and neglecting the process.
5. Not allowing room for failure.

Conclusion 

In the end, we need balance: a bit of extrinsic motivation, but a focus on intrinsic. It’s a challenge, but well worth it! When we get this mix right, the team becomes more engaged, productive, and, above all, happier. 

What about you? Have you had any good experiences with this in your team?