Unlocking Motivation and Productivity: A Guide for Leaders
I just got off a call with a recruitment agency owner.
We were talking about a problem that many leaders face – motivation.
"Why are some people producing 4x more than others?" we asked.
It’s a question that comes up a lot. Leaders want to know why, even with bonuses, incentives, and a great office environment, some of their team members are still doing way more than others. And it’s not just a small difference – it’s a huge gap in productivity.
The answer?
Intrinsic drivers.
Some people are motivated from within. They’re driven by something deeper, something more personal. This internal motivation keeps them engaged, productive, and willing to go the extra mile.
The truth is – the carrot-and-stick method doesn’t work for long. Bonuses and incentives can help for a while, but they don’t lead to lasting motivation. They often miss the real reasons why people work hard.
So, what’s the secret to real motivation?
If you want long-term motivation and productivity from your team, they need three key things:
Purpose – They need to know why they’re doing the work.
Mastery – They need to see progress and feel like they’re getting better.
Autonomy – They need the freedom to own their work, make decisions, and feel trusted.
In this article, we’ll explore each of these elements - how they work, why they matter, and how you can use them to boost motivation and productivity in your team.
Why Extrinsic Motivation Falls Short
Let’s start by exploring why old-school motivation methods often fail. Many companies use what we call the carrot-and-stick approach. You offer rewards (the carrot) for good work or punishments (the stick) for poor performance.
This method has been used for centuries and works in the short term…
Imagine you offer your sales team a bonus for hitting a target. At first, everyone works harder. They want that bonus, so they put in extra effort. Productivity spikes and it seems like a success.
But what happens next?
Once the bonus is given, motivation often drops. People go back to their usual pace. The carrot worked, but only for a short time.
Extrinsic motivation – motivation driven by outside rewards or fear of consequences – is limited. It’s good for quick results but not for lasting commitment or real engagement. It can even lead to burnout, resentment, or people only chasing rewards without caring about the work.
That’s why we need to change our focus. Instead of relying on extrinsic motivation, we need to tap into what really drives people from within – intrinsic motivation.
Intrinsic Motivation: The Key to Lasting Productivity
Intrinsic motivation is motivation that comes from inside a person. It’s not about money, perks, or avoiding punishment. It’s about finding joy in the work itself – about feeling fulfilled, challenged, and aligned with something meaningful.
Research shows that people who are intrinsically motivated are happier, more productive, more resilient, and more innovative. They’re the ones producing four times more than their peers. They don’t need constant supervision or frequent rewards to stay driven – they do it because they care.
But how do you create an environment that supports intrinsic motivation?
That’s where the three core elements come in:
Purpose: Knowing the "why" behind the work.
Mastery: Seeing progress and improving skills.
Autonomy: Having control and ownership over their work.
Let’s explore each of these in detail.
1. Purpose: Knowing the "Why" Behind the Work
Have you ever wondered why some employees are more connected to their work than others? Why do they put in extra effort when others just do the bare minimum?
It comes down to purpose.
Purpose is the feeling that what you’re doing matters. It’s about knowing how your work fits into the bigger picture – how it helps reach a goal, helps others, or makes a difference in the world.
Without purpose, work can feel like a bunch of meaningless tasks. People start to feel like they’re just clocking in and out, going through the motions without any real sense of fulfilment. This often leads to low engagement and low productivity.
On the other hand, when employees understand the why behind their work, everything changes:
They’re more engaged: They’re not just working for the paycheck; they believe in the impact of their work.
They’re more motivated: They feel part of something bigger, and that drives them to do their best.
They’re more resilient: When things get tough, purpose keeps them going. They push through challenges because they believe in the outcome.
How to Create Purpose in Your Team
Creating a sense of purpose isn’t about making grand speeches or putting mission statements on the wall. It’s about making sure every person on your team knows why their work matters.
Communicate the Bigger Picture: Explain how individual tasks contribute to the company’s goals. Show how the work helps customers, makes a difference in the community, or plays an important role.
Connect Their Role to the Mission: Help team members see how their skills and contributions fit into the bigger mission. They need to feel like what they’re doing is important and valued.
Share Stories of Impact: Share stories of how your company’s work has made a positive impact. It helps reinforce the purpose and makes the mission feel real.
For example, if you’re leading a customer service team, don’t just talk about response time targets. Talk about how their work makes a customer’s day better – how their empathy and support solve real problems and improve people’s lives.
When people know why they’re doing the work, motivation becomes natural.
2. Mastery: The Drive to Improve and See Progress
Think about the last time you learned a new skill or worked on a challenging project. Do you remember the satisfaction that came from seeing your growth?
That’s what mastery is all about.
Mastery is the desire to get better at something that matters. It’s the motivation that comes from seeing progress, learning new skills, and pushing past previous limits. When people feel like they’re growing, they’re motivated to keep going. They feel challenged but capable, and that feeling drives productivity.
On the other hand, when employees feel like they’re stuck – that there’s no chance to improve or grow – motivation quickly fades. They feel like they’re on autopilot, and productivity drops.
How to Foster Mastery in Your Team
To keep your team motivated, you need to create an environment where growth is possible, progress is visible, and challenges are welcomed.
Set Challenging but Achievable Goals: Goals should be stretching but not impossible. When people see themselves reaching meaningful milestones, they feel more motivated.
Provide Feedback and Support: Regular feedback helps people understand where they’re doing well and where they can improve. It’s not about criticism – it’s about giving people the tools to grow.
Encourage Skill Development: Offer opportunities for training, mentorship, and skill development. Whether it’s a formal course or learning on the job, people need to feel like they’re growing.
People don’t just want to work – they want to get better. The more you can create opportunities for your team to develop mastery, the more motivated and productive they’ll be.
3. Autonomy: The Freedom to Own Their Work
The third element of intrinsic motivation is autonomy – the need to feel that you have control over your work. People want the freedom to make decisions, take ownership, and have a say in how things get done.
Without autonomy, work becomes stifling. People feel micromanaged, restricted, and unable to use their creativity. This often leads to disengagement, frustration, and a lack of motivation.
But with autonomy, everything changes. People who have control over their work feel more trusted, more invested, and more motivated.
How to Create Autonomy in Your Team
Trust Your Team: Give people the freedom to make decisions about their work. Instead of telling them exactly how to do something, outline the goal and let them achieve it.
Encourage Ownership: Encourage your team to take ownership of their projects. Let them see tasks through from start to finish and give them the space to innovate.
Support, Don’t Micromanage: Be there to guide and support, but don’t hover. Micromanagement kills motivation. Trust your team; they’ll reward that trust with increased productivity and creativity.
When people feel autonomous, they take pride in their work. They’re not just completing tasks – they’re leading their own projects, solving problems, and bringing their best ideas forward. And that sense of ownership leads to higher motivation and better productivity.
Putting It All Together
Motivation isn’t about tricks or quick fixes – it’s about creating an environment where people feel connected, challenged, and trusted. When you focus on purpose, mastery, and autonomy, you create the conditions for long-term motivation and lasting productivity.
Let’s see how these three elements work together:
Purpose provides the why – the reason people care about their work.
Mastery provides the how – the path to growth and progress.
Autonomy provides the freedom – the ability to take ownership and lead.
When all three are present, you unlock the potential within your team. They become more engaged, motivated, and productive – not because they’re chasing rewards, but because they find real value and fulfillment in their work.
Real-Life Application: How Atlassian Transformed Team Motivation with Intrinsic Drivers
Let’s look at Atlassian, an Australian software company known for its innovative work culture and team motivation. Atlassian has been ranked as one of the best companies to work for, largely due to its focus on creating a workplace that prioritises intrinsic motivation.
Atlassian’s success in boosting team engagement, productivity, and motivation has been built on understanding and using the three key intrinsic motivators: purpose, mastery, and autonomy. This isn’t just good for employee satisfaction – it’s also great for productivity and company performance.
The Purpose Factor: Aligning Work with Meaning
Atlassian made sure every employee knew their work was more than just building software – it was about helping teams work better together globally. Atlassian’s tools, like Jira and Trello, were seen not just as productivity apps but as platforms that enabled companies to solve big problems together.
A study by McKinsey & Company found that employees who are motivated by a sense of purpose are 32% more productive than those who are driven mainly by external rewards like money. Atlassian’s focus on communicating the mission and impact of their tools has led to a strong sense of purpose across the workforce, which has boosted motivation and performance.
Mastery: The Drive to Get Better
Atlassian also put a big emphasis on mastery by encouraging continuous learning. They have what they call “ShipIt Days,” where employees can work on anything that interests them as long as it benefits the company or their own growth. These days give employees time and space to build new skills, try new ideas, and push beyond their comfort zones.
According to a LinkedIn Workplace Learning Report, 94% of employees say they would stay at a company longer if it invested in their learning and development. By creating a culture of growth and encouraging people to pursue what interests them, Atlassian kept its teams engaged and motivated.
The results? Atlassian has a 15% higher employee retention rate compared to industry standards, largely because employees feel they are growing and making progress.
Autonomy: Freedom to Innovate and Take Ownership
One of Atlassian’s most distinctive features is its emphasis on autonomy. Atlassian trusts its employees to manage their own time and projects. They believe in letting teams set their own priorities and choose how they complete tasks. This sense of ownership is key to keeping employees motivated and invested in their work.
The Harvard Business Review reported that companies that emphasize employee autonomy have 20% lower turnover rates and 16% higher job satisfaction. At Atlassian, autonomy has fueled innovation – leading to the development of some of their most popular tools, which started as passion projects by their employees.
One well-known example is Jira Service Desk. It started as an internal tool that developers created during one of their “ShipIt Days.” Given the autonomy to work on their ideas, a group of employees turned it into a product that now makes millions in revenue every year.
Statistics Speak: Atlassian’s Results
By focusing on intrinsic motivation through purpose, mastery, and autonomy, Atlassian achieved big results:
Employee engagement scores at Atlassian are consistently 20% higher than the industry average, according to their internal surveys.
Retention rates are higher, with employees showing loyalty because they feel valued and connected to a larger mission. Their turnover rate is 15% lower than the average in the tech sector.
The company also reports that innovation and productivity have soared, with employees taking pride in their contributions and the impact they are making.
What Leaders Can Learn from Atlassian
Atlassian’s approach isn’t just about perks or the latest trend in leadership. It’s about understanding what truly drives people and creating an environment that supports that.
They provide:
Purpose by communicating the larger impact of their work.
Mastery by investing in opportunities for skill development and innovation days.
Autonomy by trusting employees to manage their work and contribute in their own ways.
These intrinsic motivators are why Atlassian consistently ranks as one of the top companies to work for. They’ve cracked the code on long-term motivation and productivity, and it’s something any company can do with intentional effort.
Crack This, and You'll Unlock Loyalty and Unstoppable Drive
If you’re a leader or manager, ask yourself:
Does my team know why their work matters? Are you explaining how they contribute to the bigger picture?
Are they challenged and growing? Do they feel like they’re making progress and improving their skills?
Do they have the freedom to own their work? Do they feel trusted and autonomous in their roles?
If the answer to any of these questions is “no,” there’s an opportunity to boost motivation and productivity in your team.
Remember, true motivation doesn’t come from more perks or tighter control. It comes from unlocking what drives people from within. When you focus on purpose, mastery, and autonomy, you create a culture of loyalty, engagement, and unstoppable drive.
The Ripple Effect: From Motivation to Long-Term Success
When you focus on intrinsic motivation, the benefits go far beyond the immediate. You’ll see higher engagement, better performance, and lower turnover. But more than that, you’ll create a workplace where people love what they do, and where they are genuinely excited to come in each day.
According to a study by Gallup, companies with highly engaged teams see 21% greater profitability. That’s the power of motivation done right – not by dangling carrots but by tapping into what truly makes people tick.
So, if you're ready to move beyond the carrot-and-stick and start unlocking your team’s intrinsic motivation, start by focusing on what matters most – their purpose, their growth, and their freedom.
Ready to Transform Your Team?
If you’re ready to take your team from simply being productive to being truly engaged and motivated, it’s time to shift the focus from external rewards to intrinsic motivation.
Invest in your people’s purpose. Help them grow towards mastery. Give them the freedom to lead their work.
It’s not always easy, but it’s worth it. Because when you unlock your team’s intrinsic drivers, you don’t just improve productivity – you create a culture where people thrive.
With love,
Dan
References:
LinkedIn Workplace Learning Report on employee retention and learning:
Harvard Business Review on autonomy's impact on turnover and satisfaction:
Gallup Study on engagement and profitability:
Right Culture: Not Employee Satisfaction, Drives Performance