We often assume that people work harder when they’re rewarded with money, praise, status, or approval. And in the short term, that’s sometimes true. But when we look more closely at how motivation actually works, a different picture emerges. Relying too heavily on external rewards can quietly undermine well‑being, creativity, and even moral judgment. (References and research see below).
(this is the English version of my original Dutch blog post )
Why is extrinsic motivation so seductive, why backfires it, and what we can we do instead?
Intrinsic vs. Extrinsic Motivation
Psychological research (reference see below) consistently shows that humans thrive when three basic psychological needs are met:
- Autonomy – feeling free to make meaningful choices
- Competence – feeling capable, learning and growing
- Connection – feeling and being close to others
When these so called “intrinsic” psychological needs are supported, people experience more energy, creativity, resilience, and mental health. This is the essence of intrinsic motivation: doing something because it is interesting, satisfying, or meaningful in itself.
Extrinsic motivation and needs, by contrast, are driven by rewards, pressure, or fear – money, grades, status, praise, punishment, or social approval.
Modern workplaces and educational systems often lean heavily on these external drivers. They can produce quick results, but they come with a price.
Why extrinsic motivation (incentives, rewards, money, power, status) often backfires
- Extrinsic Motivation undermines well‑being
External pressure can create stress, anxiety, and a sense of being controlled. Over time, this erodes engagement and increases burnout risk.
- It reduces creativity
When the goal is to “do it right” or “get the reward,” people tend to play it safe. Creativity requires freedom, curiosity, and experimentation – all of which shrink under pressure.
- It encourages rule‑following instead of moral judgment
In highly extrinsic environments, people may focus on avoiding punishment or maximizing rewards rather than doing what is right. This can lead to corner‑cutting, manipulation, or competitive aggression.
- It can trigger unwanted behavior
A striking example: financial incentives meant to reduce sick leave actually increased absenteeism in one study. The reward unintentionally signaled that taking more sick days was acceptable behavior (Alfitian et al., 2023).
- It fuels unhealthy social comparison
Humans need connection, but social dynamics often replaces genuine connection with a constant search for approval. Comparing ourselves to idealized images or high‑status individuals can damage self‑worth and resilience.
Social media: true connection or extrinsic approval?
True connection – shared joy, shared effort, shared humanity – strengthens intrinsic motivation.
Approval‑seeking, however, is extrinsic. It pushes people to perform for others rather than for themselves.
Social media blurs this line. It can support connection, but it can also amplify comparison, perfectionism, and the pursuit of status. When people measure themselves against unrealistic standards, their sense of competence and autonomy suffers.
Value conflicts based on intrinsic versus extrinsic motivation
In workplaces, relationships, or leadership roles, someone who is driven primarily by status, power, or money can create a toxic dynamic. Extrinsically motivated people are not invested in others’ well‑being or growth. In such situations for colleagues, friends or family members distance, boundaries, and sometimes outside support are needed.
Conflicts often arise when people operate from fundamentally different value systems — intrinsic vs. extrinsic. Mediation or coaching can help to clarify these differences and rebuild understanding.
Can extrinsic rewards be helpful?
Yes — but only under specific conditions.
Extrinsic rewards can be useful at the very beginning of a new behavior, especially when combined with intrinsic elements like group support or enjoyment. For example, smoking‑cessation programs that mix financial incentives with group connection have shown promising results. (reference see below).
But once a behavior is rooted in intrinsic motivation, adding external rewards can actually weaken it. Classic research shows that children who love drawing produce worse drawings when they start receiving rewards for them.
Conclusion:
Never reward behavior that is already intrinsically meaningful!
Literature
Alfitian, J., Sliwka, D., & Vogelsang, T. (2023). When bonuses backfire: Evidence from the workplace. Available at SSRN.
van den Brand, F. A., Nagelhout, G. E., Winkens, B., Chavannes, N. H., & van Schayck, O. C. (2018). Effect of a workplace-based group training programme combined with financial incentives on smoking cessation: a cluster-randomised controlled trial. The Lancet Public Health, 3(11), e536-e544.
Ryan, R. M., & Deci, E. L. (2024). Self-determination theory. In Encyclopedia of quality of life and well-being research (pp. 6229-6235). Cham: Springer International Publishing.
Ryan, R., & Deci, E. (2017). Self-determination theory : Basic psychological needs in motivation, development, and wellness.
Ryan, R. (2019). The Oxford handbook of human motivation (Second ed., Oxford handbooks online).