What are the key differences between extrinsic and intrinsic motivation?

I would venture to say that all motivation is intrinsic. In its essence, motivation is a drive to action. It is fostered by the desire to reach a particular destination. And I believe that destination is a feeling – the feeling of satisfaction and fulfillment. Unfortunately, no matter how hard we try, we, as managers, cannot deliver this feeling to our employees directly. Nor can we ignite the fire of motivation if it is not already there. We can only add kindling to it to maintain it or prevent it from fizzling out. We can do that by getting to know them well, help them get to know themselves and what motivates them, and provide them opportunity to motivate themselves.

Acknowledging the potential drawbacks of extrinsic motivation is crucial, and in my experience, a thoughtful approach can mitigate these challenges. One effective strategy is to intertwine extrinsic motivators with opportunities for skill development and personal growth. For instance, when recognizing achievements with external rewards, emphasize how these accomplishments contribute to the individual's professional development. This adds a layer of intrinsic motivation by fostering a sense of competence and mastery and addresses the risk of dependence on external incentives.

This is not a motivation. This is a compensation which can - or does not have to - correspond with someone motives. Using task-reward system in long-term as primary tool will most likely lead to culture degradation and concentration of people who seek just the rewards.

In my leadership journey, I've found that addressing the challenges associated with intrinsic motivation requires a nuanced approach. One effective strategy is to provide a clear line of sight between individual contributions and the organization's overarching mission. When employees understand how their work aligns with the bigger picture, it enhances intrinsic motivation and mitigates the potential difficulty in measuring its impact. Also, fostering a workplace culture that encourages autonomy can help individuals derive satisfaction from their work. While external factors might influence intrinsic motivation, creating an environment that nurtures self-awareness and aligns with personal values can serve as a potent counterbalance.

This is the one true motivation as motivation cannot be given, transferred or sold to other people. As leader, I was always asking why people wake up in the morning and go to work. It is a great start to understand people' motives and arrange accordingly.

In my experience, the key to achieving the right balance between intrinsic and extrinsic motivation lies in a tailored and dynamic approach. Encourage collaboration between teams with diverse skill sets. This promotes intrinsic motivation through shared learning experiences and creates opportunities for extrinsic rewards tied to successful inter-team cooperation. Try developing a comprehensive system for measuring both intrinsic and extrinsic motivation. Use employee surveys, one-on-one conversations, and performance metrics to create a quantitative understanding of the balance and adjust strategies accordingly.

Since Extrinsic motivation is a failed concept coming from elementary misunderstanding of what motivation is, one cannot balance with Intrinsic. The right word is "alignment". Once you know the motives of people, you can align tasks, recognition, training, working hours, contract duration and other elements around these to SUPPORT the individual motives.

One unique approach that has proven effective is the concept of "Surprise Rewards." Occasionally introducing unexpected rewards, beyond regular incentive structures, can create an element of excitement. This surprise element adds an extra layer of motivation, keeping the team engaged and eager to contribute consistently. Additionally, I've observed that creating a system of "Team Milestone Rewards" fosters a collective sense of achievement. When the entire team collaboratively reaches a significant goal, the reward is shared among all members. This approach not only strengthens team cohesion but also bolsters extrinsic motivation by linking individual efforts to collective success.

One need to understand, that a recognition which means a lot for one, means way less to others and others may appreciate even more other types of recognition. In general, the team can also make a consensus on what they will see as fair rewarding and based on what values so no one feels to be left behind. Nevertheless, this is not a motivation. This is a recognition which may eventually play for people's motives.

You might be inspiring and open new opportunities for them so they find a new interest, but you cannot live for another people nor change their motivation. They need to find it themselves - so give them an area to explore to find things which would resonate with them.

Creating a culture where "Feedback is Recognition" is highly important. Feedback should not just be seen as a tool for correction, but as a way to celebrate individual contributions. It's not just about telling someone "you did well"; it's about recognizing that every effort, every action, adds immeasurable value. This recognition becomes the driving force that motivates team members, affirming that their hard work and dedication is not only noticed, but also deeply appreciated.