Let us look at some of the Intrinsic and Extrinsic Motivators and how they drive performance of employees/ team members.

Extrinsic: ​​​​​​Intrinsic:

In one of the key researches done on 94 life insurance sales people in a mid-size insurance company to understand the impact of Extrinsic vs Intrinsic motivators there were some interesting results as below:

The effect of Intrinsic motivation on performance was 44% more than the effect of Extrinsic motivation on their performance.

Also, research shows that not aligning rewards wit desired outcomes can be detrimental to an organization.

For example, if you want Quantity of output to be more emphasize a mix of extrinsic and intrinsic rewards.

But if you want Quality emphasize Intrinsic rewards.

In one of the researches done on effect of motivation on performance look at the results below:

So always strike a balance between Extrinsic vs Intrinsic motivations and ensure that rewards are aligned with contributions across different teams.