What is the difference between intrinsic and extrinsic motivation?

Employees experience intrinsic motivation when they pursue work that brings them personal satisfaction or gives them a sense of achievement and enjoyment. People perform tasks because these activities provide them with personal fulfillment.

Extrinsic motivation functions through external rewards which include bonuses, recognition, and promotions. Intrinsic motivation produces sustainable engagement but extrinsic motivation works best for quick achievements and short-term performance outcomes.