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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 Wrzesniewski et al. (1997) on “job crafting” found that when employees see a clear connection between their efforts and the positive impact on others, they are more motivated and engaged.

Leaders can foster a sense of purpose by clarifying how the team’s work contributes to the organization’s mission or makes a difference to clients, customers, or communities. Grant (2008) also demonstrated that employees who feel their work has a positive impact on others exhibit higher persistence and job satisfaction.


  • Example: A healthcare team that understands how their work directly improves patient outcomes will likely be more intrinsically motivated than a team with no visibility into the results of their efforts.


Reference: Wrzesniewski, A., Dutton, J. E., & Debebe, G. (1997). Crafting a Job: Revisioning Employees as Active Crafters of Their Work. Academy of Management Review, 26(2), 179-201.


  • Additional Reference: Grant, A. M. (2008). The significance of task significance: Job performance effects, relational mechanisms, and boundary conditions. Journal of Applied Psychology, 93(1), 108-124.


5. Encouraging Intrinsic Motivation Through Team Collaboration and Open Feedback


Research Insight: Intrinsic motivation thrives in environments where employees feel supported and engaged with others. A study by Edmondson (1999) on psychological safety shows that teams with high levels of openness and mutual respect experience greater motivation and performance. When employees feel comfortable sharing ideas, asking questions, and giving feedback, they are more likely to engage deeply and find satisfaction in their work.


AASP Approach: The Agile Action Strategy Process (AASP) aligns with these insights by creating collaborative, feedback-driven environments that prioritize personal accountability and shared purpose. AASP uses reflective practices to encourage teams to openly assess progress, acknowledge achievements, and make improvements. By fostering an environment where learning and growth are integral, AASP helps teams shift from external rewards to a sense of fulfillment in their contributions.


  • Example: Teams that regularly meet to discuss successes, lessons learned, and areas for improvement cultivate intrinsic motivation as members feel valued, supported, and able to make a meaningful impact.


Reference: Edmondson, A. C. (1999). Psychological Safety and Learning Behavior in Work Teams. Administrative Science Quarterly, 44(2), 350-383.


Conclusion: Embracing Intrinsic Motivation for Sustainable Performance


The shift from extrinsic to intrinsic motivation is about creating an environment where employees find meaning, autonomy, and personal satisfaction in their work.

By emphasizing growth, autonomy, purpose, and open collaboration, leaders can foster intrinsic motivation that sustains engagement, enhances creativity, and promotes resilience in the face of challenges. The Agile Action Strategy Process (AASP) offers a practical framework for embedding these principles, helping organizations cultivate intrinsic motivation through a culture of continuous learning, accountability, and shared purpose.


As research has shown, when employees are intrinsically motivated, they don’t just work harder—they work smarter and with greater satisfaction, driving sustained success for both the individual and the organization.



At EF International Advisors, we empower organizations at pivotal moments, turning challenges into opportunities with actionable insights and tailored strategies. For over 30 years, we’ve combined the agility of a boutique firm with deep expertise across finance, real estate, education, media, insurance, and technology.


Our practical, results-focused methods emphasize team alignment, motivation, and measurable success. Learn more about how we drive lasting impact at www.efinternationaladvisors.com.

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