Professional in Human Resources (PHR) Practice Exam

Which of the following defines intrinsic rewards?

1. External recognition and bonuses from employers

2. Factors that contribute to job satisfaction, like autonomy and meaningful work

3. Salary increments and promotions based on performance

4. Company-sponsored awards for outstanding employees

The correct answer is: Factors that contribute to job satisfaction, like autonomy and meaningful work

Intrinsic rewards refer to the internal satisfaction and fulfillment an individual experiences from their work. These rewards are often related to personal achievements, the opportunity to use one’s skills, and engaging in tasks that are meaningful and enjoyable. The correct response highlights that factors contributing to job satisfaction, such as autonomy and meaningful work, fall under the category of intrinsic rewards. These elements enhance a sense of purpose and motivation that comes from within the individual rather than from external sources. In contrast, the other options involve extrinsic rewards, which are tangible benefits provided by employers, such as recognition, financial compensation, or awards. These external motivators can certainly impact employee engagement and productivity, but they do not constitute intrinsic rewards, which focus solely on the internal gratification derived from one’s job.