Some early research on intrinsic motivation has had to be either or, believing that extrinsic rewards would drive out intrinsic motivation. But later research shows that the two kinds of rewards often support each other. It might help to think of the relationship in terms of foreground and background. Extrinsic rewards come into the foreground when workers are short on funds or benefits, when issues of unfairness arise, and when workers face major choices. They fade into the background the rest of the time, and intrinsic rewards take the foreground in day to day work.
Intrinsic rewards play a crucial role in keeping good workers.
Today's organizations can no longer offer guaranteed employment and a pension in return for worker loyalty and obedience. And workers with dull jobs are less willing to grit their teeth and hang on for the possibility of an eventual pension. Workers have been forced to take more responsibility for their own careers, going where the work is rewarding and where they can develop skills that will guarantee their employability. Good workers have more choices than before, and are more likely to use them. As workers have become more likely to leave unrewarding jobs, the loss of good workers has become less tolerable.