Motivating your staff is one of your primary duties as a manager or leader. Offering prizes is one of the most powerful ways to inspire your team, even though you can utilize many other methods. Yet not all awards are created equal, and designing a rewards scheme that encourages your group requires an understanding of the psychology of rewards.
This post will look at rewards psychology and discuss creating a program to inspire your staff.
Understanding Intrinsic and Extrinsic Motivation
Understanding intrinsic and extrinsic motivation is crucial before delving into the psychology of rewards.
Without rewards or incentives from outside sources, the intrinsic drive is the desire to perform something for its reason. It originates within and is motivated by a person’s interest in or enjoyment of the work.
On the other hand, extrinsic motivation stems from outside forces like incentives, recognition, or punishment. It is the drive to respond to future benefits or adverse effects.
While both types of motivation have a chance to be successful, evidence points to intrinsic motivation as being more potent and durable. Therefore, a rewards scheme that stresses internal motivation is more likely to succeed.
Recognition of the Value of Autonomy, Mastery, and Purpose
According to research, compensation schemes that support an individual’s need for autonomy, mastery, and purpose are the most successful.
The desire for control over one’s working environment and the capacity for independent decision-making are examples of autonomy. Workers are more likely to feel satisfied and invested in their work if they have freedom. Workers are more likely to feel motivated and engaged if they believe they are progressing and learning new skills.
The drive to work toward something meaningful is known as purpose. Workers are more likely to be motivated and engaged if they believe their work has significance and is aligned with their values.
Designing a Rewards Program That Aligns with What Motivates Your Team
It’s critical to comprehend what drives your team members to design a rewards program that inspires them. You should ensure fair treatment of your staff by implementing employee benefits software to track progress. You can use the following techniques to create a rewards system that matches your team’s motivations:
- Give employees control over their working environment and freedom to decide for themselves by offering autonomy. This can entail providing flexible work schedules or allowing staff members more authority over how they conduct their jobs.
- Promote mastery – Provide staff members the chance to learn new things and hone their talents. This can entail providing mentorship or training opportunities.
- Develop Meaningful Work – Assist employees in realizing the value and significance of their work. This can entail telling tales of how their work has changed the world or tying their efforts to the greater good.
- Give Intrinsic Incentives – Pay special attention to incentives that go together with internal motivation, such as chances for personal development or acknowledgment for attaining objectives.
- Use Extrinsic Rewards Wisely – Extrinsic rewards can still be beneficial when applied wisely, even when intrinsic benefits are more potent. Ensure staff knows the rewards’ requirements and links financial incentives to particular accomplishments or goals.
Awards can be a strong incentive for your team, but designing a rewards program that inspires your staff requires a grasp of the psychology of rewards. For example, you may create a rewards program that aligns with what drives your team’s motivation and promotes more engagement and productivity by emphasizing autonomy, mastery, and purpose and providing intrinsic benefits. Additionally, you can further improve the efficiency of your incentive program by deliberately using extrinsic rewards.
