Abstract:
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.
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Keywords:
Employee Motivation, Extrinsic Rewards, Intrinsic Rewards, SDG 8 (Decent Work
and Economic Growth), SDG 10 (Reduced Inequalities)
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