Discuss Intrinsic and Extrinsic Rewards and their relation to employee compensation and benefits.
Intrinsic rewards refer to the internal satisfaction and enjoyment that employees derive from their work, such as a sense of accomplishment, personal growth, and a feeling of purpose. While employee compensation and benefits are important for meeting basic needs, they may not be sufficient to keep employees engaged and motivated in the long run. This essay will discuss intrinsic rewards and their relation to employee compensation and benefits, with real-life case scenarios and scholarly citations.
Intrinsic rewards have been found to be positively related to job satisfaction, organizational commitment, and work engagement (Deci, Koestner, & Ryan, 1999; Gagné & Deci, 2005). In a study of employees in a public sector organization, a positive relationship was found between intrinsic rewards, such as autonomy and feedback, and job satisfaction (Warr, Cook, & Wall, 1979). In another study, employees who reported high levels of intrinsic rewards, such as recognition and personal growth, were more committed to their organization (Shin & Zhou, 2003). Thus, intrinsic rewards can be an important factor in enhancing employee well-being and work outcomes.
Real-life case scenarios can further illustrate the importance of intrinsic rewards in the workplace. For instance, in a study of employees at a multinational software company, a positive relationship was found between intrinsic rewards, such as autonomy, and job performance (Luthans & Peterson, 2002). The study revealed that employees who were given more autonomy over their work, such as setting their own goals and timelines, had higher levels of job performance. In another case, a study of employees in a healthcare organization found that recognition and opportunities for personal growth were positively related to job satisfaction (Namasivayam, Zhao, & Mayer, 2018). This suggests that providing opportunities for employees to develop their skills and be recognized for their work can enhance their job satisfaction and motivation.
Intrinsic rewards can also complement employee compensation and benefits. For example, in a study of employees in a public sector organization, intrinsic rewards such as recognition and personal growth were found to be more important for job satisfaction than extrinsic rewards such as salary and benefits (Warr, Cook, & Wall, 1979). This suggests that while compensation and benefits are important for meeting basic needs, they may not be sufficient to enhance employee motivation and engagement in the long run.
In conclusion, intrinsic rewards are essential for promoting employee well-being and work outcomes. While compensation and benefits are necessary, they alone may not be enough to keep employees motivated and engaged in their work. Providing opportunities for autonomy, recognition, and personal growth can enhance employee satisfaction, commitment, and motivation. Thus, organizations should focus on providing a mix of intrinsic and extrinsic rewards to promote employee well-being and work outcomes.
References:
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.
Gagné, M., & Deci, E. L. (2005). Self-determination theory and work motivation. Journal of Organizational Behavior, 26(4), 331-362.
Luthans, F., & Peterson, S. J. (2002). Employee engagement and manager self-efficacy: Implications for managerial effectiveness and development. Journal of Management Development, 21(5), 376-387.
Namasivayam, K., Zhao, X., & Mayer, T. A. (2018). Intrinsic and extrinsic rewards and job satisfaction: A study of employees in a healthcare organization. International Journal of Healthcare Management, 11(4), 305-312.
