Employee motivation is critical to performance, engagement, and overall well-being. But many leaders continue to rely on traditional motivation strategies, such as financial incentives, performance-based rewards, employee perks or fear of negative consequences while ignoring a more effective and sustainable approach. While short-term tactics can generate immediate results, they often fail to build long-term commitment and satisfaction.
Leaders must encourage self-driven extrinsic motivation to create an environment where employees remain motivated beyond the initial excitement of a raise or promotion. This type of motivation helps employees find personal meaning in their work, even when tasks are not inherently enjoyable.
What Is Self-Driven Extrinsic Motivation?
Employee motivation is usually categorized into two types:
- Intrinsic motivation is where individuals find purpose and enjoyment in their work.
- Extrinsic motivation is when employees are driven by external rewards such as salaries, bonuses, promotions, or to avoid negative consequences.
While intrinsic motivation is ideal, not all tasks are inherently fulfilling. Similarly, extrinsic motivation, though effective in the short term, can lead to disengagement if employees feel controlled or pressured.
Self-driven extrinsic motivation bridges this gap by enabling employees to internalize external motivators. This type of motivation transforms tasks that once felt like obligations into opportunities for personal growth and meaningful impacts. External factors, like money, success, recognition, or avoidance of negative consequences, initially drive self-directed external motivation. However, once a person has aligned specific tasks with meaningful outcomes, they take the initiative to complete the tasks without needing oversight from others.
Organizations that cultivate self-driven extrinsic motivation experience several key benefits:
- Increased Ownership & Accountability – Employees take initiative and responsibility rather than relying on micromanagement.
- Higher Job Satisfaction & Well-Being – Employees who connect their work to personal growth experience greater engagement and fulfillment.
- Lower Turnover Rates – Employees who see career progression and value in their work are less likely to leave the company.
- Enhanced Innovation & Problem-Solving – Employees who feel personally invested in their work contribute more creative solutions and take calculated risks.
Examples of Self-Driven Extrinsic Motivation
Research by Lee and Shin (2023) shows that when people see their work as meaningful, they are more engaged and motivated. Their study found that employees who find personal value in their tasks are more satisfied and committed to their jobs. See the following real-life examples of how this can occur.
Acquiring a New Skill
A junior employee is required to use new project management software. Initially, they learn it because their boss asks them to. Over time, they realize it helps them stay organized, gain more responsibilities, and position themselves for a promotion.
Finding Meaning in Work
A nurse struggles with strict hospital protocols and efficiency targets. At first, these external requirements feel frustrating, but this person internalizes their value over time and connects these procedures to helping to save lives.
Aligning Tasks with Long-Term Goals
A middle manager is assigned to a complex, high-stakes project. Initially, they see it as just another corporate task. But then, they recognize that leading this project builds leadership skills and strengthens their case for promotion. Instead of resisting the challenge, they embrace it as developing a critical skill for career growth.
3 Steps Leaders Can Take to Support Employee Motivation
Step #1: Understanding Of What Motivates Employees
A leader’s first step is understanding what truly drives their employees. Research from Self-Determination Theory (Deci & Ryan, 2000) highlights three fundamental needs that fuel motivation: These universal psychological needs are rooted in our most basic social needs as humans. They are Autonomy, Relatedness, and Competence (ARC).
Autonomy: Need to be in control of one’s behavior and goals.
Relatedness: Need to feel a sense of belonging and security in relationships.
Competence: Need to be able to master the challenging tasks of one’s life.
Leaders must clearly understand the key drivers for employee well-being and motivation before they can effectively assess how those needs are being met.
Step #2: Ask Quality Questions and Listen
Regular one-on-one conversations can uncover what motivates employees and how they perceive their roles. Leaders who regularly ask quality questions create an environment where employees feel valued, capable, and in control. Below are examples of quality questions for a better understanding of how your employees feel their ARC needs are being met at work.
Autonomy
- Do you have the appropriate level of input and influence in your daily work?
- Do you have the necessary independence to do your role effectively?
- Do you feel your opinions are heard and valued?
Relatedness
- What are the most satisfying aspects of your current work experience?
- How are you staying connected to your other team members?
- What do you need more from me? / What do you need less of from me?
Competence
- How clear are you about your priorities and goals?
- What aspects of your role would you like to do more of in the future?
- Does your role enable you to leverage your strengths?
Step #3: Leadership Actions That Support Employee Motivation
Leaders can best serve their employees by demonstrating behaviors that address the basic needs for employee well-being, motivation, and performance of those they lead. Beyond conversations, leaders must reinforce motivation through intentional actions. Leaders can best support their employees by encouraging independence and providing helpful feedback.
A recent study by Guo (2023) found that when employees feel trusted to make their own decisions, they are more motivated and engaged. The research showed that giving employees ownership over their work leads to higher job satisfaction and long-term commitment. Instead of micromanaging, leaders should focus on empowering their teams and helping them feel more invested in their work.
Below is a list of everyday activities that will help employees feel motivated despite the challenges and uncertainties they constantly encounter.
The Role of Money in Employee Motivation
While financial incentives such as raises and bonuses can serve as short-term motivators, research indicates that money alone is not an effective long-term engagement strategy. But, if an employee perceives pay inequity, it will become a strong demotivator and create dissatisfaction.
Leaders should prioritize transparent and fair compensation structures while educating employees on how pay decisions are made. Employees who feel confident that their pay and benefits align with market standards feel respected and treated fairly by their leader and organization.
Creating a Culture of Sustainable Employee Motivation
Leaders who focus on building self-driven extrinsic motivation develop teams that are more engaged, innovative, and committed to long-term success. Developing a culture that supports the universal needs of employees and teams does not happen by accident. Leaders must understand the principles of human motivation and well-being, regularly assess if those needs are being met, and engage in daily actions that enable their employees to experience Autonomy, Relatedness, and Competence.
What are your leaders doing to create an environment that meets the needs of employee motivation, motivation, and performance?