Introduction
Rewards are often used to encourage people to perform better.
A bonus can motivate employees to reach a target. A certificate can encourage learners to complete a course. Points, badges, praise, and incentives can all make a task feel more rewarding.
But rewards do not always create lasting motivation.
Sometimes, adding an external reward can make people less interested in the activity itself. A learner who once enjoyed solving problems may begin focusing primarily on earning points. An employee who found satisfaction in doing meaningful work may become more focused on the reward attached to it.
This difference between internal and external motivation is central to the distinction between Intrinsic and Extrinsic Motivation.
Intrinsic Motivation comes from the activity itself, such as curiosity, enjoyment, mastery, or a sense of purpose. Extrinsic Motivation comes from external outcomes, such as rewards, recognition, grades, promotions, or avoiding consequences.
Both forms of motivation can influence behaviour, but they do not always work in the same way.
Understanding this distinction matters because effective motivation is not simply about offering better rewards. It is about creating conditions in which people have meaningful reasons to engage, improve, and continue learning.
This article explores the psychology behind Intrinsic and Extrinsic Motivation, why rewards do not always improve performance, and how learning experiences can support more sustainable motivation.
What Is Intrinsic Motivation?
Intrinsic Motivation refers to engaging in an activity because the activity itself is satisfying or meaningful.
The motivation comes from within rather than from an external reward.
For example:
- Learning something because it is interesting
- Solving a challenging problem because it feels satisfying
- Developing a skill because mastery is personally rewarding
- Exploring a topic out of curiosity
- Taking on a difficult task because it feels meaningful
Intrinsic Motivation is often connected to curiosity, enjoyment, autonomy, mastery, and personal meaning.
The activity itself provides the reason to continue.
What Is Extrinsic Motivation?
Extrinsic Motivation refers to engaging in an activity because of an external outcome or consequence.
The motivation comes from something outside the activity itself.
For example:
- Completing training to receive a certificate
- Working towards a bonus
- Studying to achieve a high score
- Completing an assignment to avoid a penalty
- Participating in a programme to qualify for a promotion
Extrinsic Motivation can be highly effective in certain situations, particularly when tasks are routine, clearly defined, or not inherently interesting.
The challenge is that external rewards do not always create lasting engagement.
Why Rewards Don’t Always Improve Performance
Rewards can influence behaviour, but their effect depends on the task, the person, and how the reward is introduced.
They can shift attention away from the activity
People may focus more on earning the reward than doing the task well.
They can reduce intrinsic interest
An activity that was previously enjoyable may begin to feel like something done only for an external outcome.
They can encourage short-term behaviour
Rewards may motivate immediate action without creating lasting commitment.
They can create pressure
Performance incentives can sometimes increase anxiety rather than motivation.
They may encourage the wrong behaviour
People tend to optimise for what is rewarded, which may not always be the behaviour an organisation actually wants.
Motivation is not simply a matter of adding incentives.
The quality of the motivation matters too.
The Science Behind Intrinsic and Extrinsic Motivation
Self-Determination Theory
Psychologists Edward Deci and Richard Ryan developed Self-Determination Theory, which explains motivation through three fundamental psychological needs: autonomy, competence, and relatedness.
People tend to become more Intrinsically motivated when they feel they have meaningful choice, can develop competence, and experience a sense of connection with others.
The theory has become an important framework for understanding motivation in education, work, and other settings.
Reference: Self-Determination Theory
Deci’s Reward Studies
Research by Edward Deci found that introducing external rewards for activities people already found Intrinsically interesting could reduce their subsequent interest in those activities.
This helped establish the idea that rewards can sometimes undermine Intrinsic Motivation rather than strengthen it.
The effect is not universal. The meaning and type of reward matter.
Cognitive Evaluation Theory
Cognitive Evaluation Theory, a component of Self-Determination Theory, suggests that external rewards can affect how people perceive their autonomy and competence.
A reward that feels controlling may reduce Intrinsic Motivation, while positive feedback that reinforces competence can support it.
How a reward is experienced can therefore matter as much as the reward itself.
Motivation and Performance
Research suggests that the relationship between motivation and performance depends partly on the nature of the task.
Extrinsic incentives can be useful for straightforward, measurable tasks. For activities requiring creativity, problem-solving, or deeper thinking, excessive emphasis on external rewards can sometimes interfere with performance.
Different tasks require different approaches to motivation.
What Intrinsic and Extrinsic Motivation Look Like in Learning
Motivation influences learning in many everyday situations.
Completing training for a certificate
The external credential provides the motivation.
Exploring a topic out of curiosity
The desire to understand something creates Intrinsic Motivation.
Participating to earn points or badges
The reward encourages engagement.
Practising a skill to feel more capable
The satisfaction of improvement provides internal motivation.
Completing mandatory training to avoid consequences
The motivation comes from an external requirement.
Learning experiences often contain both forms of motivation.
The challenge is ensuring that external incentives do not become the only reason to participate.
Designing Learning to Support Motivation
Learning experiences can be designed to encourage both meaningful engagement and appropriate external motivation.
Give learners meaningful choice
Allowing people some control over how they learn can strengthen autonomy.
Create opportunities for mastery
Progress, challenge, and visible improvement can make learning inherently rewarding.
Connect learning to real work
People are more likely to engage when they understand why something matters.
Use rewards carefully
External incentives should reinforce learning rather than become the sole purpose of it.
Provide meaningful feedback
Feedback that highlights progress and competence can support motivation without relying on rewards.
Build social connection
Discussion, collaboration, and shared experiences can make learning more engaging.
The goal is not to eliminate rewards.
It is to make sure rewards support the learning experience rather than replace the reasons to learn.
Common Design Mistakes to Avoid
Rewarding every behaviour
Constant incentives can make learning feel transactional.
Using points as the main source of engagement
Gamification can encourage participation without necessarily creating meaningful learning.
Focusing only on completion
Finishing a course does not necessarily mean that learning has taken place.
Ignoring learner autonomy
Highly controlled experiences can reduce a sense of ownership.
Using rewards without understanding the task
What motivates one activity may undermine another.
Assuming more incentives always produce better results
Motivation is more complex than simply increasing the size or frequency of rewards.
Effective learning design considers what makes people want to learn, not just what makes them complete the training.
Why Supporting Intrinsic Motivation Improves Learning
It encourages deeper engagement
People are more likely to explore and think deeply when they find learning meaningful.
It supports persistence
Internal motivation can encourage continued effort when progress becomes difficult.
It strengthens ownership
Learners take greater responsibility for their development.
It supports long-term learning
Interest and mastery can continue motivating people after external rewards disappear.
It improves the quality of engagement
People focus on understanding and applying knowledge rather than simply completing requirements.
When people have meaningful reasons to learn, motivation becomes less dependent on what they receive in return.
Conclusion
Intrinsic and Extrinsic Motivation can both influence behaviour, but they are not interchangeable.
Rewards, recognition, and incentives can encourage action, particularly for certain tasks. But when external rewards become the primary reason for participation, they can sometimes weaken curiosity, autonomy, and genuine interest.
Sustainable motivation comes from more than incentives. People are more likely to engage deeply when they have meaningful goals, opportunities to develop competence, a sense of autonomy, and a clear connection between learning and real-world purpose.
The question is not simply, “What reward will motivate people?”
It is also, “What would make them want to do it in the first place?”
FAQ: Intrinsic Motivation
What is Intrinsic Motivation?
Intrinsic Motivation is the desire to engage in an activity because it is interesting, enjoyable, meaningful, or personally satisfying.
What is Extrinsic Motivation?
Extrinsic Motivation comes from external rewards or consequences, such as money, grades, recognition, promotions, or avoiding penalties.
Can rewards reduce Intrinsic Motivation?
Yes. Research suggests that certain external rewards can reduce Intrinsic Motivation, particularly when they feel controlling or replace a person’s sense of autonomy.
Is Extrinsic Motivation always bad?
No. External rewards can be useful for encouraging certain behaviours and completing routine or clearly defined tasks. Their effectiveness depends on how and why they are used.
How can learning design support Intrinsic Motivation?
By providing meaningful choice, opportunities for mastery, relevant challenges, useful feedback, and clear connections between learning and real-world needs.
Why Choose Learnnovators?
What is Custom e-learning?
Custom e-learning is digital training designed specifically for an organisation’s learners, goals, and business needs. Unlike off-the-shelf courses, it is tailored to reflect real workplace scenarios, making learning more relevant, engaging, and effective.
What should organisations look for in an e-learning partner?
An effective e-learning partner takes the time to understand an organisation’s people, challenges, and goals before recommending the right learning solution. Beyond creating engaging content, they should design learning experiences that are practical, scalable, and aligned with real business needs.
Who is Learnnovators?
Learnnovators is a global custom e-learning company founded in Chennai, India, in 2003. They work with organisations around the world to design digital learning experiences that help people learn better and perform with greater confidence.
What does Learnnovators do?
Learnnovators designs and develops custom workplace learning solutions, including Custom E-Learning, Mobile Learning, Gamified Learning, Blended Learning, Flash To HTML5 Conversion, Localization, and Moodle Customization, and their Learning Management System (LMS), Learnospace.
Who does Learnnovators work with?
Over the past two decades, Learnnovators has partnered with organisations across industries worldwide, delivering more than 15,000 hours of learning content in over 70 languages for 300+ clients across five continents.
How can I contact Learnnovators?
If you’re looking to create learning experiences that solve real workplace challenges, write to elearning@learnnovators.com to start the conversation.
