Rewards can provide a safe and orderly environment and the resources needed to produce quality outcomes. Respect and appreciation are shown to staff members for their professional knowledge and skills; and jobs are designed to be personally challenging and professionally satisfying. Staff members are valued for their individual contributions, and creative thinking and innovation are prized, recognized, and continuously supported.

In organizations that are effective, staff members have leaders who care about their well-being, give them the freedom to exercise their own judgments, and encourage them to make decisions that influence the quality of their work. Specific rewards vary, but may include plaques, compensation time, merit pay, and the opportunity for advancement.

Many employees leave their jobs in search of more challenging experiences, higher salaries, or career changes. Some move into leadership roles for the challenge, and others seek the move for pay increases. Leaders must find ways to meet the personal and professional needs of their employees, to maximize their human potential, and to satisfy career expectations.

Extrinsic rewards can be broadly defined as promotions, money, and recognition. Money is the most talked about extrinsic reward; however, research findings are mixed on the actual importance of this reward. Intrinsic rewards come from within and include feelings of achievement, competence, and self-actualization.