The Influence of Intrinsic and Extrinsic Motivation in Workers’ Productivity: Empirical Evidence from the Construction Industry

Abstract

The human resource remains the most critical productive asset of any organization as it is the human element that gives direction and dynamism to the organization. This study investigated the effect intrinsic motivations and extrinsic motivations have on employee productivity of four selected construction companies in Delta State. To achieve its objectives, the study adopted a quantitative research approach with a survey research design. From a population figure of 242 low-level permanent employees of the four selected construction companies in Delta State, 151 constituted the sample as data were collected through a structured questionnaire using the cross-sectional approach. Descriptive statistics and simple regression analysis were used to analyze the data gathered and test the study hypotheses. Findings revealed that intrinsic motivation has a significant positive effect on employee productivity and extrinsic motivation also exerts a significant positive effect on employee productivity. Also, the most effective tools of extrinsic motivation are competitive salaries, extra work bonuses, and opportunities for promotion. Based on these findings, it was concluded amongst others, that the desire to gain mastery and contributes to societal development through construction-related activities gives low-level construction workers some level of satisfaction and financial-related incentives have an immediate and powerful effect on their performance. The key recommendation of the study is that to make a foster high level of productivity from the employee, top management should adopt a performance-based payment system and sell the benefits of contributing to societal development to the construction workers, acknowledging their contribution through noble initiatives like recognition from an authority, opportunity for mentoring, participation in decision making.