The Impact of Intrinsic and Extrinsic Rewards on Employee Motivation at a Medical Devices Company in South Africa

In a competitive business environment, the concept of rewards and employee motivation has become a popular point of discussion in many successful organisations. Companies need to review their reward systems in order to improve employee motivation, increase performance and stay competitive. The main purpose of this research was to investigate the role that intrinsic and extrinsic rewards play in motivating employees. This study in assessment of this problem adopted an explanatory research design using quantitative methodology and a survey strategy carried out among employees at a medical devices company in South Africa in order to assess these. The research had the following three essential objectives: to ascertain whether employees value rewards as motivation factors, to establish the extent to which employees are satisfied with current reward systems, and to identify which rewards (extrinsic or intrinsic) employees consider most beneficial. Forty (40) questionnaires were collected from respondents in order to explore and analyse their opinions on these topics. The analysis of the data collected from the questionnaires suggested that rewards are highly valued as a motivating factor by respondents. The research further suggested that employees were generally satisfied with, and benefited from the current rewards offered by the company. Additionally, it was found that employees were more motivated by intrinsic rewards rather than extrinsic rewards, although a thirteenth cheque and annual salary increases (extrinsic rewards) were the most ranked rewards for employees at the company.