Society For Human Resource Management (SHRM) Certified Professional Practice Exam

What kind of rewards are extrinsic to an employee's personal satisfaction?

1. Salary increases

2. Recognition awards

3. Job promotions

4. All of the above

The correct answer is: All of the above

Extrinsic rewards refer to tangible benefits or rewards that come from external sources rather than from personal satisfaction or internal feelings. Salary increases, recognition awards, and job promotions all fall into this category as they are provided by the organization and can significantly impact an employee’s motivation and satisfaction. Salary increases serve as a financial incentive and directly affect an employee's economic well-being, making it an external reward. Recognition awards can elevate an employee’s status within the organization and boost their visibility, reinforcing their value in the eyes of peers and superiors. Job promotions signify advancement and typically come with added responsibilities and financial benefits, representing an external acknowledgment of an employee’s performance and potential. Together, these forms of recognition highlight the various ways organizations can support and motivate employees externally, making "all of the above" the encompassing and accurate answer regarding intrinsic versus extrinsic rewards.