Successful incentive programmes are built around one simple question: what motivates people to perform at their best? The short answer is motivation. There are several theories to explain what motivates people, such as biological and physiological factors needed for survival or self-actualization driven by inner fulfillment. The range of factors can have both internal and external drivers and are different for everyone. When designing incentive programs, recognition initiatives or customer engagement campaigns, it’s important to understand not only how to communicate with your audience, but also what motivates them to change their behaviour and achieve specific goals. Below, we explore three well-established theories of motivation and how they can be applied to create more effective incentive programs and event experiences.
3 Theories of Motivation That Shape Successful Incentive Programmes
Two-Factor Theory
Also known as the motivation-hygiene theory, the two-factor theory states that there are two sets of factors that affect employee motivation and job satisfaction. These are “hygiene factors” or external motivators and “motivation factors” or internal motivators.
Motivation factors are often less tangible in nature and based on an individual’s desire for personal growth, achievement, recognition, responsibility, reward, or advancement.
Hygiene factors are typically more tangible needs and based on external factors such as job security, compensation, status and benefits.
These factors have an inverse relationship. This means that intrinsic motivators increase motivation when they are present, and extrinsic motivators reduce motivation when they are absent. A fair wage is an expectation so the removal of one would cause dissatisfaction, whereas positive reinforcement from a manager is not always expected so it can be a source of motivation.
Reinforcement Theory
The basis of this theory is similar to a cause and effect relationship. The premise being that an individual’s behavior is a function of the consequences of that behavior. For example, if you work hard, you’ll earn a promotion. Or if you earn a promotion, you’ll likely want to work harder. This theory is based on operant conditioning and external factors rooted in reinforcement or punishment.
Reinforcement is utilized to increase the frequency of a behavior. This can be done through positive reinforcement which rewards a particular behavior or through negative reinforcement by removing something that an individual doesn’t like. For example, an employee who consistently acquires new business and generates revenue for a company may be rewarded with an all-expenses paid trip to a once-in-a-lifetime destination. The effectiveness of reinforcement can be impacted by several factors including an individual’s degree of need, the time elapsed between behavior and reinforcement, or the magnitude of the reward.
Expectancy Theory
This theory suggests that people decide to behave in certain ways based on the expected result of that chosen behavior and is comprised of three key components: expectancy, instrumentality, and valence.
Expectancy is an individual’s belief that their effort will lead to intended performance goals hinges on past experiences, self-confidence, and the perceived difficulty of a given performance standard.
Instrumentality is a person’s belief that they will earn a desired outcome or reward if they meet the above-mentioned performance standard.
Valence is the unique value that each individual places on a particular outcome or reward. This value naturally differs from person to person, meaning that a reward that satisfies one employee, may hold little to no meaning to another depending on their personal values.
In a nutshell, expectancy theory states that people will work harder if they believe their efforts will be rewarded in a way that is satisfactory to them.
How do these theories explain the ways people are motivated at work?
Now that we understand different motivational theories, tying them to professional implications will help us better understand how motivation can be used to create effective performance improvement programs. A few areas that tie into motivational theories are goal setting, management styles, and incentives. Effectively leveraging motivation strategies across these different areas can result in big payoffs for organizations and employees alike.
Set Achievable Goals
Both the expectancy and reinforcement theories above recognize that attainable goals are a solid foundation for spurring motivation. By working with employees to understand their intrinsic and external motivators, you can help them create goals that are realistic, attainable, and fulfilling. As a result, employees are more likely to work to attain those goals for themselves – because they believe they can achieve them – and the associated reward.
Adjust Management Styles
Ensuring that employees feel valued and supported by their managers and teams is an excellent way to increase motivation and job satisfaction. Providing support through training, mentorship, positive reinforcement, or closely tying in performance to rewards for positive impact are all great ways to keep motivation moving forward.
Recognize Differences in Needs
Remember what motivates one person may not motivate the next, so your strategies shouldn’t be one size fits all. Benefits packages, working conditions and the way employee contributions are acknowledged should differ amongst individuals. Everyone has different motivational needs, by tailoring to them as best you can, you’ll better ensure positive job satisfaction and that employees will feel valued and interested in continuing to achieve their goals.
What makes an incentive programme successful?
Understanding motivation theory is only part of the equation. Organizations also need to grasp a solid understanding of design incentive programs that are not only engaging, but also aligned with wider business objectives. The most successful programs will usually include clear goals and rewards that will genuinely resonate with participants.
For example, a sales incentive program may reward all of the top performers with a memorable travel experience, while a customer loyalty program could recognize long-term engagement through exclusive experiences or more personalised rewards. The key to this is to make sure that incentive always feels valuable to the audience and directly reflects the behaviours that the organization wants to encourage.
The role of events and experiences in driving long-term engagement
While financial rewards can be very effective, you will find that memorable experiences often create an even stronger emotional connection with both employees and with customers. Incentive travel and recognition events along with experiential rewards provide opportunities to celebrate achievement while at the same time strengthening relationships and reinforcing company culture.
Strategic event solutions also allow organizations to communicate their business objectives, and recognize success publicly, while also creating shared experiences that will continue to motivate participants long after the program has ended. By combining behavioural insight with well-planned events, businesses are able to create incentive programs that will deliver meaningful engagement as well as measurable business results.
What’s the takeaway?
Understanding what motivates people is fundamental to designing successful performance improvement programs. By combining proven motivational principles with carefully planned incentive strategies and engaging event experiences, organizations can encourage positive behaviours, improve engagement and support long-term business performance.
Incentive programs, gifting, and other forms of tangible rewards, when supported by strategic event solutions, can be used to motivate employees over specific periods of time and positively change behavior.
In order to maximize the impact of these reinforcements, features of the incentives need to be tailored to employee interests. For example, successful incentive programs should have clearly defined rules, rewards, and communication strategies to engage the audience. Gifting incentives should be tailored to the interests and needs of employees and provide them with personal value.
References
For more information on the studies referenced in this article and more, visit:
– The Science of Improving Motivation at Work by Positive Psychology,
– 20 Most Popular Theories of Motivation in Psychology by Positive Psychology,
– 14 Ways to Use Incentives to Motivate Employees by Forbes,
– How to Set Up Incentives to Motivate Your People by inc.com,
– Incentive Theory of Motivation and How to Use it in the Workplace by Indeed.com
