Do Rewards, Incentives, and Competition Undermine Motivation?

• In Event: Controversial Questions in Contemporary Motivation Science: Insights From the Leading Voices

Abstract

Objectives
The undermining effect of extrinsic rewards on intrinsic motivation has been one of the most fiercely debated topics in contemporary motivation science. While cognitive evaluation theory and, more specifically, the overjustification effect has been widely accepted as the mechanism underlying the negative influence of rewards on intrinsic motivation, recent neuroscientific evidence challenges this explanation.

Perspectives
Early studies that demonstrate the undermining effect of extrinsic rewards on individuals’ learning and performance did not have access to neuroscientific data on brain functioning. Neuroscience has started generating evidence that similar brain activations are observed for both extrinsic and intrinsic motivation. One answer to this question is therefore provided by the neuroscientific research perspective (Hidi, 2016). A second answer explains how curiosity, interest, and intrinsic motivation are related, given that they all involve “rewarding” information search and varying levels of extrinsic input (Renninger & Hidi, 2016).
Nonetheless, rewards sometimes undermine motivation. When administered carelessly, rewards can backfire and leave students extrinsically, rather than intrinsically, motivated (Anderman, 2021). A third answer describes the application of research on the effects of extrinsic rewards in classroom settings. Acknowledging that rewards are popular among educators, evidence-based ways to use rewards and competition so as not to undermine student motivation in the classroom is discussed. A fourth answer is provided by a self-determination theory perspective. External events such as competition (i.e., “beat the other”) offers a curious mix in which some of its aspects are exciting while other aspects bring only pressure and demoralization (Reeve & Deci, 1996). This perspective seeks to demystify external events such as competition, by (1) identifying its bright and dark sides, (2) providing an organizing framework to make sense of its motivational crosscurrents, (3) explaining when and why competition is motivationally exciting or undermining, and (4) offering practical recommendations for its constructive application.

Summary
From a neuroscience perspective, the distinction between intrinsic and extrinsic motivation is arbitrary. The same reward circuitry in the brain is activated during interest (i.e., intrinsic motivation) and rewards (i.e., extrinsic motivation). Rewards are most useful when trying to help the uninterested to engage in and start making meaningful connections with an activity. Rewards can produce motivation and performance comparable to those created by intrinsic motivation and also strengthen the positive effects of intrinsic motivation.
From a self-determination theory perspective, extrinsic incentives and competitions typically undermine motivation. Competition is motivating when it provides excitement, optimal challenge, standards of excellence, immediate and informative feedback, and an opportunity to exercise one’s skills. Competition is demotivating when it introduces evaluative pressure, the threat of public failure, competitively contingent rewards, and high-stakes outcomes.

Significance
Ample everyday examples and scientific evidence attest to the motivating power of rewards. Equally abundant evidence points to the undesirable and unexpected consequences of well-meant rewards, such as the immediate cessation of effort when rewards discontinue. The controversy is that supportive evidence exists on both sides. This state of affairs leads to dramatically different (and confusing) recommendations for teachers, which this presentation will help clarify.

Authors

• Suzanne E. Hidi, University of Toronto

• K. Ann Renninger, Swarthmore College

• Eric M. Anderman, The Ohio State University

• Johnmarshall Reeve, Australian Catholic University