Extrinsic motivation is driven by external rewards. These rewards may be tangible, like more money or PTO, or intangible like public recognition or praise from a boss. In the workplace, extrinsic rewards can drive short-term behaviors and compensate employees for their hard work. The key is to make them timely and deliver them in a meaningful way.

If you manage a team, extrinsic rewards can help you encourage employees to step up to a challenge or complete a task with a short deadline. When intrinsic motivation — doing something for the love or challenge of it — isn’t enough, extrinsic rewards can fill in the gap.

In this issue of PromoPro Daily, we share a post from the Vantage Circle blog that highlights some especially motivating extrinsic rewards.

1. Excellent pay. Your employees may indeed love what they do, but they’re also working for a living. Make sure you pay them fairly, and if possible, generously. The post points out a survey that shows that compensation is one of the top 3 drivers of job satisfaction.

2. Great perks. Things like 401K matching, health benefits, tuition assistance and work-from-home options are all fringe benefits that can motivate your team members. Some of these perks, like flexible hours, won’t even cost you anything.

3. Job security. This is an important extrinsic reward going into 2023, according to the Vantage post, because of the current economic uncertainty. The post says that job security is one of the most integral extrinsic factors influencing employees’ job satisfaction.

4. Promotions. According to the Vantage post, a promotion can be one of the most powerful extrinsic motivators. People tend to think the most qualified employees earn promotions, so strive to make your performance appraisal system fair, measurable and not overly complex.

5. PTO. Employees can use paid time off however they see fit. There’s no differentiation between vacation days and sick days. The Vantage post notes that most employees (92%) feel that paid leave is important to their overall job satisfaction.

6. Monetary recognition. In addition to excellent pay, you can inspire extrinsic motivation with monetary appreciation. For example, you might give a bonus for reaching a challenging sales goal or for finding a creative solution to a problem.

7. Paid recreational activities. Everyone appreciates a pick-me-up, especially if they’re having a tough week or month. The Vantage post recommends things like team lunches or outings that can let people relax and catch up without worrying about the usual work demands.

8. Timely and frequent bonuses. Employee rewards tied to specific tasks are referred to as task-based bonuses. The post says that when employees complete the bonus-related task, they become eligible to receive the reward. Such employee bonuses are a great way to encourage greater productivity and effectiveness at work.

9. Better work amenities. Think back-supporting chairs, ambient lighting or speedier Wi-Fi. These are all upgrades that can improve employees’ experiences at work.

Whether you use extrinsic rewards to help your team achieve short-term goals, overcome a challenge or progress toward a major milestone, they can help you motivate your team in powerful ways.

Compiled by Audrey Sellers

Source: The Vantage Circle blog. Vantage Circle is a cloud-based employee engagement and benefits platform.