Intrinsic rewards are personal, psychological responses to the work that employees perform, which stem from the manner in which their work is designed.
This study sought to discover in what ways non-profit employees are psychologically rewarded by the nature of their work tasks. The use of a qualitative approach to data collection and analysis ensured that in-depth responses from participants were gained.
Intrinsic rewards are of particular importance to non-profit employees, who tend to earn below-market salaries. This implies that their motivation originates predominantly from intrinsic as opposed to extrinsic rewards; yet, research into this area of rewards is lacking.
In-depth, semi-structured interviews were conducted using a sample of 15 extrinsically rewarded non-profit employees working within South Africa. Thematic analysis was utilised in order to generate codes which led to the formation of five intrinsic rewards categories.
Intrinsic rewards were classified into five categories, namely (1) Meaningful Work, (2) Flexible Work, (3) Challenging Work, (4) Varied Work and (5) Enjoyable Work. These rewards each comprise of various subcategories, which provide insight into why such work is rewarding to non-profit employees.
Traditional performance management systems should be re-evaluated in the non-profit sector to shift focus towards intrinsic rewards, as opposed to focusing only on the use of extrinsic rewards such as incentives to motivate employees.
The study provides a qualitative understanding of how extrinsically rewarded non-profit employees perceive their work to be intrinsically rewarding, which bridges the empirical gap pertaining to intrinsic rewards within this sector.
‘There is more to rewarding people than throwing money at them.’ (Armstrong & Brown,
In order to improve the strength of an organisation’s value exchange for its employees, organisations should develop reward systems that emphasise both extrinsic
Intrinsic rewards play a role of particular importance to non-profit employees, because employees working for independent non-governmental organisations in South Africa earn, on average, 40.37% less than employees in the private sector in this country, and 22.06% less than those working for international non-governmental organisations (Ryder,
Confirming this, Schepers
In addition, there is a lack of empirical studies focusing on intrinsic rewards that have been conducted within South Africa. Nujjoo and Meyer (
The above overview reveals that limited research has been conducted on the relevance of intrinsic rewards within NPOs specifically. Moreover, little research pertaining to this construct exists within South Africa. Thus, the research question for this study is, ‘How are employees working within NPOs in South Africa intrinsically rewarded by their work?’ This article seeks to uncover by what means non-profit employees can be psychologically rewarded through the nature of their work, as opposed to being only monetarily remunerated through extrinsic rewards. By taking a phenomenological approach to data collection and interpretation, this article aims to provide qualitative insights into the perceptions of NPO employees regarding intrinsically rewarding work.
Theory relating to intrinsic rewards is grounded in the work of Herzberg (
Herzberg’s (
Drawing from the latter two theories, the researchers note that an employee’s work should be purposeful (JCM) and autonomous (JCM; SDT), as well as provide opportunities for mastery (SDT) and variety (JCM) in order for it to intrinsically reward employees. The semi-structured questions asked in the qualitative interviews of this study were aligned to these elements of work, indicating a deductive approach to identifying relevant themes.
Individuals are able to experience intrinsic rewards even when they are provided with extrinsic rewards; however, intrinsic rewards motivate individuals’ behaviour more powerfully than extrinsic rewards (Csikszentmihalyi, Graef & Gianinno,
The fact that intrinsic as opposed to extrinsic rewards promote greater levels of intrinsic motivation (Nujjoo & Meyer,
This empirical study was non-experimental in nature because no treatment or unique conditions were assigned to participants (Landy & Conte,
This research was furthermore phenomenological, aiming both to understand as well as interpret how participants give meaning to aspects of their working lives (Fouché,
Qualitative, in-depth interviews were conducted in South Africa in order to gain in-depth data and verify whether the construct of intrinsic rewards is of particular relevance to extrinsically rewarded NPO employees in this country. NPOs in South Africa are formed ‘for the purpose of serving a public or mutual benefit other than the pursuit or accumulation of profits for owners or investors’ (Bussin,
The researchers made contact with potential participants through emailing an interview invitation to NPO employees with whom they are in personal contact. Additionally, an interview invitation was posted on a social media platform to broaden the sample.
The researchers fulfilled a number of roles as this study was conducted. Apart from personally conducting the semi-structured interviews, they also planned the study through making contact with participants, setting up the interview appointments, and developing the list of semi-structured questions to be asked during the interviews. Additionally, the researchers analysed the data through the use of thematic analysis. The researchers did not transcribe the interview data, because this was performed by a student assistant who aided the researchers due to their work constraints.
Data was obtained from 15 NPO employees in South Africa. Non-probability sampling in the form of purposive and convenience sampling was used. Purposive sampling entails relying on experience and/or previous research in order to obtain units of analysis in such a manner that the sample obtained was as representative of the population as possible (Welman
Frequency distribution of demographic variables (
Item | Category | Frequency | % |
---|---|---|---|
Gender | Male | 4 | 26.7 |
Female | 11 | 73.3 | |
Education | Grade 12 (Matric) | 5 | 33.3 |
Diploma or higher education certificate | 1 | 6.7 | |
Bachelors degree | 2 | 13.3 | |
Honours or postgraduate degree or diploma | 4 | 26.7 | |
Masters’ degree | 1 | 6.7 | |
Doctoral degree | 2 | 13.3 | |
Type of position in NPO | Administrative | 6 | 40.0 |
Strategic or managerial | 9 | 60.0 | |
Total number of years of working experience | >1 to 10 years’ experience | 4 | 26.7 |
11 to 20 years’ experience | 5 | 33.3 | |
21 to 30 years’ experience | 1 | 6.7 | |
31 to 40 years’ experience | 5 | 33.3 | |
Tenure within current NPO | >1 to 5 years’ experience | 9 | 60.0 |
6 to 10 years’ experience | 3 | 20.0 | |
11 to 17 years’ experience | 3 | 20.0 | |
Non-profit category in which respondents work | Animal welfare | 1 | 6.7 |
Conservation and environment | 1 | 6.7 | |
Cultural activities | 2 | 13.3 | |
Education and development | 1 | 6.7 | |
Health care | 3 | 20.0 | |
Religion, belief and philosophy | 1 | 6.7 | |
Welfare and humanitarian | 6 | 40.0 |
‘Long’ interviews are recommended by Fouché (
A theoretical (deductive) means of identifying data patterns was used in this qualitative study, implying that the questions asked in the interviews aligned with specific theories pertaining to the research area, which enabled the researchers to answer their research question (Braun & Clarke,
The interviews ranged in length depending on the depth of answers provided by the participants, as well as the amount of probing on the part of the interviewers. The techniques for effective interviews discussed by Greeff (
The interviews were recorded by means of Dictaphones so that they could be accurately transcribed. This ensured that all information was noted for subsequent analysis, so that the correct meanings and subtleties of participants’ responses were interpreted (Marchington & Wilkinson,
Reliability was confirmed through asking the same predetermined questions to every participant, which ensured standardisation and consistency. Validity was maintained through aligning these interview questions with theoretical frameworks, thus ensuring that the data obtained was relevant to theory related to intrinsic rewards.
To ensure that the research was conducted within an ethical framework (see Webster, Lewis & Brown,
The process of thematic analysis was utilised to analyse the qualitative interviews. According to Braun and Clarke (
There are certain steps that comprise the process of thematic analysis, as discussed by Spencer, Ritchie, O’Connor, Morrell and Ormston (
This thematic framework led into the third step of thematic analysis, which involved
The fourth step of thematic analysis entailed
As noted, a thematic framework was compiled deductively, based on theory described earlier in this article. Patterns of responses emerged from the data collected using these questions, which led to the generation of codes. These codes were then inductively interpreted and re-labelled to form categories. The categories that were found to best group the ‘intrinsic rewards’ subtheme were Meaningful Work (MW), Flexible Work (FW), Challenging Work (CW), Varied Work (VW) and Enjoyable Work (EW).
Nine codes were classified from the ‘intrinsic rewards’ subtheme under the category of MW. Firstly, nine participants felt that they
…when people say to me ‘thank heavens [organisation C] stepped in and relieved his pain, and empowered me to look after him at the end of his life’ – that is the greatest reward …. My greatest satisfaction comes from thinking, ‘Gee, I contributed to that’. My part, my little part in this organisation – and remember I’m not in the front line, I’m not a nurse or psychologist – but I’ve helped raise the funds to get that nurse to that man in Motherwell who was dying a terribly painful death and we could alleviate his suffering. That is the ultimate payoff for me. [Participant C, Female, Fundraising Events Manager]
These examples emphasise the importance of task identity, which in Hackman and Oldham’s (
The code most frequently applied to the data was that of
I think that’s a big reward and I think one day when you’re old … it’s just to look back and say, ‘But what did I do with my time on earth? What purpose did I have on earth?’ And I think that for me it is important that I could touch lives … even if it’s just in one person’s life. You can make a difference. [Participant K, Female, General Manager]
Moreover, Participant D, who is the public relations officer for an NPO that organises transportation for sick children so that they receive life-saving treatment, stated that she desires to go to work each morning because she knows that it is guaranteed that she will make a large difference in the lives of others, which motivates her. Seeing one’s work assisting others strengthens the significance of one’s tasks, which implies that a job substantially impacts the physical or psychological well-being of others inside or outside the organisation (Hackman & Oldham,
The above code is related to the
Data related to
…the reward definitely is not financial. Not at all. The reward comes from the hug from a child inside Sunday school; the tears from someone who’s come through divorce care; the look of gratitude on someone’s face when you visited them at hospital; praying with someone who’s in need … it’s priceless … there’s nothing like sitting with someone who you’ve walked a long road with through divorce care that can say to you ‘for the first time in seven years, I’ve been able to speak to the father of my children because of this course’. You can’t put a price on that. [Participant L, Female, Pastoral Care Convenor]
Thirteen participants made reference to their
…some of the babies, they spend about six to eight months in Cape Town on chemo – so they grow their teeth there, they start walking in hospital, so when we hear they’re coming home, it’s excitement for us and it’s fulfilling, and it’s just knowing they’ve made it – that’s rewarding enough. [Participant D, Female, Public Relations Officer]
Each of these Meaningful Work codes shares a common thread, in that individuals need to be
One code emerged from the data that was classified under the category of Flexible Work, namely
…I do have a lot of autonomy in terms of decisions, so if I feel that the programmes need to be radically changed, it can be ready to be changed today. I do not have to go and seek authority from someone else. [Participant F, Male, Residential Programme Manager]
Speaking about her boss, Participant G mentioned that:
He’s not a micromanager so long as I deliver the goods, he doesn’t mind how I do it. He knows I will do it ethically and I’ll do it well, and he gives me a lot of autonomy … there’s nothing that drives me more crazy than somebody micromanaging me and telling me how to do stuff. If you ask me to do something, I’ll do it and I’ll deliver it and it’ll be great, and if you want it done the way that you want it done … then you should rather do it yourself … if I need help, I’ll ask. [Participant G, Female, Research and Technical Lead]
Such autonomy, a part of SDT, is defined by Deci and Ryan (
Four codes were classified under the category of Challenging Work.
Having
Six participants made reference to being rewarded through
Fourteen participants made reference to content that was coded as their
It’s very different to working in any other place. The challenges are huge because you’re dealing with people all the time. People come before projects. [Participant L, Female, Pastoral Care Convenor]
Participant B referred to the fact that when she began working in her NPO, the challenges were overwhelming because the lives of children depended on her accuracy. However, such challenges helped her to grow, and her tasks have become easier with time. Participant H mentioned that the NPO sector is challenging because skills, technology and direction are radically changing, and his competence has thus needed to evolve accordingly. As a result, he does not feel that he will ever reach a level of mastery within his job.
Participant K summarised the challenging environment of NPOs by stating that this sector requires employees to put all of their efforts into their work, because much planning and effort is required in order for a difference to be made over time. The responses within the latter three codes are in line with what Herzberg (
Like Flexible Work, the category of VW was comprised of only one code that emerged from the data, namely
Every day is a completely different day, so it’s not monotonous … you can go to the same hospital five times, but you are going to meet someone else, there’s going to be something new for you to learn there. [Participant D, Female, Public Relations Officer]
Participant F explained that he would get bored with routine work and standardised days, and instead finds fulfilment in having a variety of tasks to do and different challenges to overcome. Along the same line, Participant G noted that she is fulfilled by applying her mind to different daily tasks:
I get such a variety of things to do. There are the mundane day-to-day things which are repetitive, but most days I get something different come across my desk and I find that to be very fulfilling because it’s something different to apply my mind to, something different to think about … try and approach things in a new way, try and be innovative. [Participant G, Female, Research and Technical Lead]
Responses from participants were categorised into the intrinsic reward of Enjoyable Work as a result of two codes. Firstly,
Secondly, four participants commented that
…for the first time in my life I feel like a round peg in a round hole… [Participant L, Female, Pastoral Care Convenor]
Summary of categories and codes for the theme ‘intrinsic rewards’.
Category | Code |
---|---|
Meaningful Work | Playing a vital role at work |
Seeing the difference that one’s work makes | |
Feel-good factor arising from one’s work | |
Empowering others | |
Giving hope to others | |
Fulfilling tasks | |
Social upliftment | |
Sharing knowledge with others | |
Working towards a common, vital purpose | |
Flexible Work | Autonomy |
Challenging Work | Opportunities to use their personal skills |
Opportunities to develop their skills | |
Opportunities to gain experience | |
Challenging tasks | |
Varied Work | Diverse tasks |
Enjoyable Work | Interesting tasks |
Performing work that one enjoys or loves |
These findings are of importance for the management of NPO employees. Managing the characteristics of NPO jobs lies at the heart of job design (Woods & West,
Intrinsic rewards should be used as a base form of reward that is offered to every employee at the start of employment and continued for the duration of their tenure, unlike performance-related extrinsic rewards which are provided as a result of effective performance and in fact damage intrinsic motivation (see Deci,
Consequently, intrinsic rewards should be built into the culture of an organisation in order to promote above-average work conditions for every employee through effectively designed work. In this sense, intrinsic rewards reward employees simply for being a part of their organisation. They are a means of indicating to employees that they are valued and cared for, not because of their levels of effort or performance, but simply because they have made themselves available to work at the organisation and have offered their talents for the good of the firm and society. Instead of reinforcing positive performance extrinsically, intrinsic rewards reinforce the fact that employees are appreciated, respected and esteemed for who they are and what they bring to the fore to assist the organisation in achieving its mission and objectives. When jobs are designed to be intrinsically rewarding, this sets the scene for a cycle of positivity; a series of progressive consequences that begin with employees
Despite these managerial implications, it should be acknowledged that intrinsic rewards are not the sole method by which employees can be motivated. Although this article has provided evidence that the work of NPO employees is intrinsically rewarding when designed to be meaningful, flexible, challenging, varied and enjoyable, this does not justify paying such employees below-market salaries. Employees should be managed holistically in order for them to be productive, loyal and motivated (Whitaker,
A potential limitation to this study is the fact that recognition, or feedback obtained on one’s work, was not included as a type of intrinsic reward. The present researchers classify recognition and feedback as extrinsic, non-financial rewards, because they are generally administered by external sources such as managers or peers, thus not being truly intrinsic in nature. However, it is acknowledged that Hackman and Oldham’s (
Additionally, it is worth noting that this study has not provided evidence that the management of the NPOs under study have made use of
While this article has highlighted the relevance of NPO work when designed in an intrinsically rewarding manner, it is recommended that future research focus on the causal impact of intrinsic rewards on positive organisational constructs such as NPO employees’ levels of organisational citizenship behaviours, psychological capital, emotional intelligence and organisational commitment. Such research requires a quantitative methodological approach, unlike the approach taken to collecting ‘rich’ detailed data in the present study. The current findings provide a solid foundation for future causal studies that will attempt to broaden the intrinsic rewards empirical base of knowledge.
This study has provided contextual data from non-profit employees working in South Africa, with regard to the psychological rewards they experience from the nature of their work tasks. It was revealed that their work is perceived to be meaningful (purposeful) in nature, as well as flexible (autonomous); challenging (stimulating); varied (non-routine); and enjoyable (interesting). These aspects of work motivate such employees intrinsically, which suggests that traditional performance management systems that rely on extrinsic rewards may not be the most effective means of motivating non-profit employees.
This work was partially supported by a bursary from the South African Reward Association.
The researchers wish to thank the Centre for Positive Organisations at the Stephen M. Ross School of Business, University of Michigan, USA, with whom this research was conducted in association.
The authors declare that they have no financial or personal relationships which may have inappropriately influenced them in writing this article.
M.R. conducted this investigation within the first of three phases of research conducted for her PhD in Commerce (Industrial Psychology). R.J.S. was her supervisor. M.R. was responsible for authoring this manuscript, with editorial assistance from R.J.S.