INFLUENCE OF EXTRINSIC AND INTRINSIC REWARDS TO EMPLOYEES’ MOTIVATION

This study examined the influence of extrinsic and intrinsic rewards on employee motivation in the first-class Local Government Units (LGUs) of the 2nd Congressional District of Davao del Norte, anchored on Vroom’s Expectancy Theory and McGregor’s Theory X and Y. Using a quantitative, nonexperimental design, data were collected from 279 regular LGU employees through structured questionnaires assessing extrinsic rewards (pay, bonuses, benefits, promotions), intrinsic rewards (recognition, career development, responsibility, learning opportunities), and employee motivation (work performance, attitude, goal setting, feedback, empowerment, and job satisfaction). Findings showed high ratings for both reward types, with promotion and responsibility scoring the highest results. Regression analysis revealed that pay and promotion significantly predicted motivation among extrinsic rewards, while benefits negatively influenced it and bonuses had no significant effect. For intrinsic rewards, responsibility, recognition, and learning opportunities were significant predictors, though career development showed a negative relationship. The study concludes that intrinsic rewards have a stronger influence on motivation and recommends that LGUs strengthen intrinsic motivators while reassessing benefits and career development programs to sustain a motivated workforce.