Extrinsic Motivation


This refers to items used to inspire and motivate employees to be more productive and stay at a company longer, which include external rewards or outcomes. These are things like money (salary increases, bonuses, etc.) or perks (free lunches, foosball tables, etc.).

While extrinsic motivation can have a positive effect for short periods of time and for limited activities and roles, it is widely agreed that their effect not only diminishes over time, but can actually work to diminish employee motivation.