I was talking to a health and benefits manager about intrinsic and extrinsic motivation. She is reading articles that tell her that only intrinsic motivations matter. But I know so much research that validates my instant-salivation when someone says $100 Amazon Gift-Card. So here's my take, in written form:
Extrinsic motivation is motivation that is focused outward, to the environment that the person is in. For example, you give people a $100 gift card or a reduction in their health insurance premiums if they get screened by their doctor and then talk with a health coach at least once a month, to focus on reducing weight, blood pressure or emotional stress in their lives - all factors that are known to lead to expensive illnesses. The person is taking action because you are dangling money (an external factor) or you are threatening them with a negative outcome (higher premiums).
Intrinsic motivation is motivation (desire) that stems from inside the person. The group increases the customer satisfaction by decreasing the fail rate of a product, and they do that because they are given more autonomy in their work and they are on fire to do a good job, because a good job reflects on their vision of themselves. They want to see themselves as Quality Performers, so they are internally-powered to think of new ideas and put them into practice. They take ownership of the result because they truly, deeply care (are motivated).
However, human beings are complex, and simple definitions don't model human beings very well. Most people take action or stop taking action, or shift their internal beliefs, because of both intrinsic and extrinsic factors. The most successful Human Resources changes include both intrinsic and extrinsic components. In the intrinsic example above, the professionals started to take more ownership of the final result (shifted to more intrinsic motivation) when they were given more power and autonomy to make changes; if the company just talks, or brings in a "motivational speaker," the results will not last, because deep desire isn't engaged by just talk.
One interesting result is that positive external incentives work more effectively than negative incentives. From a psychology perspective, consider that if you want people to change deeply ingrained habits, are they more likely to do so if they are cheerfully walking toward a reward, or are angry and resentful (you are increasing their premiums unless they comply)?
In the example of improving health outcomes, the best results seem to include both extrinsic factors (the positive financial incentives) and the addition of intrinsic motivation. The health coaches provide encouragement and inspiration, and the best coaches will stress the outcome of the changes: that the employee will be more likely to stay healthy for their children if they maintain a healthy weight and blood pressure. A strong desire to do the best for one's children is a common intrinsic motivation to get healthier.
Understanding that people are complex, that intrinsic and extrinsic motivations work best when both are active, and that carrots (positives) work better than sticks (negatives) can help guide a company to their true end goal - greater profits through more educated and trained, happier and more engaged workers.
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