What are extrinsic rewards?

Extrinsic rewards refer to the tangible benefits or incentives that are given to individuals by others in recognition of their achievements or performance. These rewards can include bonuses, promotions, pay raises, and recognition awards. The key characteristic of extrinsic rewards is that they come from an external source rather than being a product of internal satisfaction or self-driven goals.

Setting extrinsic rewards apart from intrinsic motivations, which are self-derived and stem from personal satisfaction and fulfillment, highlights the external nature of the former. Extrinsic rewards are particularly effective for motivating individuals to reach certain performance levels or complete tasks that are aligned with organizational goals. They help reinforce desired behaviors and can enhance engagement in particular situations or contexts.