Create a positive workplace culture without extrinsic rewards

Dan Pink's 2009 TED Talk, "The Puzzle of Motivation," changed the way the world looked at extrinsic motivation — mainly that it doesn't work in most business models. Even though research proves this concept, many businesses have been slow to remove extrinsic incentives, like unlimited PTO and free snacks and drinks in the office.

In contrast, the companies that have created successful intrinsic motivation methods have high employee retention rates. When employees know they matter, are paid a fair wage, and are part of something important, they stick around. What's even better? They are innovative and productive.

When employees are happy and engaged, the business thrives. Creating intrinsic motivation isn't as elusive as it may sound. Companies can take the following steps to move towards a positive workplace culture.

Step 1: Develop mission, vision and core values 
What's the company's purpose? What makes it unique? How will it make a difference in the marketplace? That's the mission. The mission should be broad and inspire employees to find their purpose within the company.

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Where will the company be in five years? What goals will move it forward? That's the vision. The vision narrows down the mission into action steps.

What behaviors support the vision? That's the company's values. Core values guide employees on the way they need to behave and engage in the work environment. Making these values clear will help employees engage appropriately with the company.

Step 2: Share mission, vision and core values with employees
The best way to build intrinsic motivation within the company is by communicating the mission, vision and core values to the employees regularly. Bringing employees into the fold shows them they are an important aspect of the company. Employees want to know that what they are doing matters not only to their company, but also in the grander scheme of things. Helping employees understand their place in the company will result in higher retention and more creative producers. 

Making sure employees not only know and understand the mission, vision, and core values, but that they exemplify them within the work environment, is crucial. It guarantees that everyone is on the same page and working toward the same goals.

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Step 3: Lead by example
By hiring or developing world-class leaders that communicate the company's mission, vision and core values effectively, companies develop intrinsically motivated employees, which then creates the type of company that gets noticed in the marketplace.

Key elements to look for in leadership: the ability to inspire employees and enable teams to reach their full potential; the ability to manage conflict fairly; the understanding that they are responsible for and set the company-wide culture by their very being and role-modeling.

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Once a company has proper leadership in place, it can ensure employees are aligned with the company's mission, vision, and core values. Leading by example and giving clear feedback develops intrinsic motivation because the team has a clear understanding of the company's purpose and how they fit into that purpose.