Ever heard of a phrase “employees are a business’ greatest asset”? While this may sound like a cliché, the truth it bears cannot be denied. When employees are well taken care of, the business is set to flourish to greater heights. Salaries may be a fundamental right to employment in South Africa, however, recognising and rewarding through incentives, may be used to motivate and improve performance. You may ask: Do I need incentive programs for my company? Though this may sound like another cost inefficient question for the business, the nuances of implementing an incentive program carry a positive impact on shaping a performance-driven culture. Now is the time for businesses, to measure what really matters – taking care of the people!

In this article, we delve deeper on the intrinsic and extrinsic forms of motivation and the importance of incentive programs for employees, across various industries.
It is no brainer that incentives (whether intrinsic or extrinsic), play a crucial role in motivating employees in the workplace.

According to Kendra Cherry (Cognitive Psychology, 2023), Intrinsic motivation is an internal force that drives behaviour. This implies that the internal motivation arises from within. People are more likely to engage in a specific behaviour because it is rewarding and fulfilling. Because employees are people, it is likely that they find fulfilment in their roles because of how satisfying it is to work on their career aspirations on a daily. Companies contribute to the success of its people through career development courses and leadership programmes.

According to Kendra Cherry (Cognitive Psychology, 2023), extrinsic motivation is an externally driven force of motivation. People are more likely to engage in a specific behaviour for a reward or a lack of punishment thereof. Extrinsic motivation in the workplace is driven by the external recognition, rewards or consequences of a behaviour, rather than the acts of an employee enjoying their tasks. Employees get remunerated for doing the job itself. Therefore, it is important for companies to adopt rewards and recognition programs to further motivate employees to go over and beyond their job descriptions. A simple pat on the back for a job well done may not be sufficient. Creating and designing incentive programs that recognise employee efforts is crucial in appreciating the workforce.

It is important therefore, for companies to strike a balance in motivating employees. A successful incentive program involves finding a balance between motivators to create a culture of performance and engagement.

Understanding how each type of motivation works and when it is likely to be useful can help people perform tasks (even when they do not want to) and improve their learning. Incentives are important because they motivate employees to work harder and to achieve specific goals. This, in turn, should lead to better performance and profitability. Now, more than ever, is the time for strategic leaders to measure what really matters!