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Writer's pictureTed Fujimoto

The Power of Intrinsic Motivation: Shifting Your Team from Extrinsic Rewards to True Engagement

Updated: Nov 19


In the workplace, motivation often takes two forms: extrinsic motivation, which is driven by external rewards like money or recognition, and intrinsic motivation, which comes from a genuine interest and enjoyment in the work itself. Research has consistently shown that intrinsic motivation leads to higher engagement, creativity, and satisfaction, contributing to long-term performance and well-being in ways that extrinsic motivators often cannot. By shifting a team’s focus from external rewards to internal satisfaction, leaders can foster a more resilient, innovative, and engaged workforce. Here’s how intrinsic motivation impacts performance, supported by evidence-based research, and how to facilitate this shift within your team.



1. Understanding the Benefits of Intrinsic Motivation


Research Insight: Intrinsic motivation is tied to better performance, creativity, and persistence. In their foundational work on self-determination theory, Deci and Ryan (1985) found that people are more likely to engage deeply with tasks they find inherently interesting or meaningful. When individuals are intrinsically motivated, they are less likely to experience burnout and more likely to be resilient in the face of challenges, as they are driven by personal satisfaction rather than external rewards.


  • Example: A product development team motivated by the opportunity to solve complex, meaningful problems is more likely to come up with innovative solutions than one focused primarily on hitting sales targets.


Reference: Deci, E. L., & Ryan, R. M. (1985). Intrinsic Motivation and Self-Determination in Human Behavior. Plenum Press.


2. Moving Beyond Rewards and Recognizing Effort, Growth, and Mastery


Research Insight: Extrinsic motivators, such as bonuses or other rewards, can diminish intrinsic motivation in the long term. Known as the "overjustification effect," this phenomenon occurs when external rewards undermine the individual’s internal satisfaction with the task itself (Deci, Koestner, & Ryan, 1999). Over time, employees become more focused on receiving rewards and may lose interest in the actual work.


Studies also show that intrinsic motivators, like recognition for mastery, personal growth, and effort, are more effective in sustaining engagement. Dweck’s (2006) research on growth mindset highlights that emphasizing effort and development fosters resilience and a love for learning, which supports intrinsic motivation.


  • Example: Rather than rewarding employees solely for hitting targets, managers can acknowledge progress, highlight skills developed, and recognize team members’ problem-solving approaches. This shift places value on growth and mastery, reinforcing intrinsic motivation.


Reference: Deci, E. L., Koestner, R., & Ryan, R. M. (1999). A meta-analytic review of experiments examining the effects of extrinsic rewards on intrinsic motivation. Psychological Bulletin, 125(6), 627-668.


  • Additional Reference: Dweck, C. S. (2006). Mindset: The New Psychology of Success. Random House.


3. Encouraging Autonomy to Empower Team Ownership


Research Insight: Autonomy is a fundamental driver of intrinsic motivation. Deci and Ryan’s self-determination theory shows that when individuals have control over their work, they are more likely to find it satisfying and meaningful (Deci & Ryan, 2000). Autonomy fosters a sense of ownership and responsibility, leading employees to engage more deeply with their tasks and seek innovative solutions.

Additional research by Pink (2009) supports this finding, demonstrating that autonomy, along with mastery and purpose, creates a “Motivation 3.0” framework that drives sustainable performance in modern workplaces. By giving employees the freedom to choose how they approach their work, leaders can cultivate intrinsic motivation.


  • Example: Allowing team members to set their own goals, decide how they tackle projects, and make key decisions can significantly boost their engagement and commitment.


Reference: Deci, E. L., & Ryan, R. M. (2000). The “What” and “Why” of Goal Pursuits: Human Needs and the Self-Determination of Behavior. Psychological Inquiry, 11(4), 227-268.


  • Additional Reference: Pink, D. H. (2009). Drive: The Surprising Truth About What Motivates Us. Riverhead Books.


4. Fostering Purpose and Meaning in Work


Research Insight: Purpose-driven work enhances intrinsic motivation, as individuals feel that their work has a meaningful impact. Research by Wrzesn