Most of us who have worked for someone else, especially in a large corporate setting, already know that extrinsic motivators, like bonuses or other rewards, don’t work. These are attempts to create a Darwinian, survival-of-the-fittest environment, the theory being that people will do their best to try to reach the carrot dangled in front of them.
Interestingly, study after study show that extrinsic motivators can actually reduce productivity. In fact, if three different-sized rewards are offered to three different groups, the group being offered the largest incentive will perform the worst.
Seriously.
However, companies who allow people autonomy and creativity, and who give people purpose — all intrinsic motivations — will see not only an increase in production, but an increase in creativity and excellence.
Watch Daniel Pink spell this out:
I want to work for a company like this. Don’t you?
