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Alberto Venturini

Do rewards and incentives really motivate people?

Premi e incentivi motivano davvero le persone?

Scritto da

Alberto Venturini

in

Press  ·  4 min read

Let’s formulate it better: rewards and incentives motivate people to make them calm and motivated to work and be more productive?1. Introduction

The practice of offering rewards, gifts or incentives to employees is widespread in all organizations. In the context of SMEs it often represents the most immediate lever with which we try to increase engagement, satisfaction and performance. However, scientific literature indicates that these tools produce very different effects based on the nature of the work, the perception of fairness and the underlying psychological dynamics. The central question is therefore the following: Do rewards and incentives really motivate people?

2. Incentives and motivation: what the research says

Studies on motivation, particularly in the field of work psychology, distinguish between extrinsic motivation e intrinsic motivation. “Carrot and stick” systems, based on logic if… then…, fall into the first category.

2.1 The limit of extrinsic systems

The research of Deci, Ryan and collaborators (1985, 2000) shows that economic and material rewards work only for routine work, repetitive, mechanistic. In such activities, rewards can increase speed and accuracy, as long as:

  • the work is objectively simple and standardized

  • operational autonomy is guaranteed

  • the reward system is clear, transparent and consistent

This framework is also consistent with the approach of reward systems reported in HR manuals and in studies on remuneration policies, where variable leverage generates results in highly structured tasks with measurable outputs.

2.2 When incentives become counterproductive

In the roles they require creativity, problem solving, conceptualization, decision making, economic incentives produce the opposite effect: they reduce motivation, creativity and availability for voluntary commitment.

This phenomenon is known as overjustification effect, according to which external reward “crushes” intrinsic motivation, shifting the focus from interest in the task to the desire to obtain the reward.

3. The theoretical framework: the Self-Determination Theory

The Self-Determination Theory (Deci & Ryan) represents today the most accredited theory for understanding human motivation. It identifies four fundamental conditions for an individual to be motivated, effective and involved in their role.

3.1 Pay equity

Compensation must be fair relative to the market and internally consistent. In the absence of equity there is no incentive capable of compensating for the perception of injustice.

3.2 Autonomy

The person must be able to choose how to organize part of their work. Autonomy does not mean the absence of control, but the possibility of making decisions within clear margins.

3.3 Mastery

The worker must have the opportunity to improve, learn and perfect technical and behavioral skills. The absence of growth reduces motivation.

3.4 Purpose

People want to contribute to something meaningful. The purpose may or may not coincide with the company objective, but it must be perceived as having meaning.

If these conditions are not respected, no incentive will generate lasting motivation.

4. Why personalized rewards work better than standard rewards

Research on recognition theory shows that people respond more positively to forms of reward that enhance identity, specific contribution, and observable behaviors. Generic recognition, such as “nice work,” has limited impact. On the contrary, feedback that links the employee’s personality and action to company objectives improves engagement and strengthens the sense of belonging.

This logic is consistent with the models of remuneration policies and reward systems described in the HR literature, according to which an effective incentive lever must be situational, proportionate and integrated into the performance management .

5. Answer to the initial question: do rewards and incentives motivate people?

In light of scientific evidence, the answer is NO, at least in the traditional form in which many companies continue to use them.

Incentives motivate Alone in very specific contexts and for routine tasks. For all other roles, which represent the majority in modern organizations, motivation derives from autonomy, fairness, possibility of growth and sense of work.

Rewards can be useful, but only as a complement, not as a primary lever.

Bibliography

  • Deci, E. L., & Ryan, R. M. (1985). Intrinsic Motivation and Self-Determination in Human Behavior. Springer.

  • Deci, E. L., & Ryan, R. M. (2000). The “What” and “Why” of Goal Pursuits. Psychological Inquiry.

  • Pink, D. (2009). Drive: The Surprising Truth About What Motivates Us. Riverhead Books.

  • Hackman, J. R., & Oldham, G. R. (1976). Motivation through the Design of Work. Organizational Behavior and Human Performance.

  • OD&M Consulting. Reward Systems. Design guide.

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