Last updated on October 3rd, 2026 at 11:49 am
A Lagos sales manager began paying staff a bonus for every new customer. Sales jumped for three months, then collapsed when customers complained about pushy tactics and staff stopped helping each other.
Reward power is the ability to influence people by giving them things they value, such as pay, praise, promotions, or opportunities.
Used well, it motivates people and recognizes effort fairly, but as the sales manager learned, poorly designed incentives can reward the wrong behavior.
Almost everyone holds some of this power, from managers who approve raises to parents who grant privileges and friends who offer praise.
The sections below explain where this power comes from, what research says about rewards and motivation, common mistakes, and how to use incentives wisely at work and at home.
Table of Contents
What Is Reward Power?
It is one of five bases of power psychologists John French and Bertram Raven described in 1959, alongside legitimate, coercive, expert, and referent power.
It depends on the other person believing you can give them something they want, or remove something they dislike.
Because it usually comes with a role, it counts as position power, a category explained in where social power comes from.
Types of Rewards
| Type | Examples | Best Used For |
|---|---|---|
| Financial | Salary increases, bonuses, commissions | Recognizing measurable results fairly |
| Recognition | Praise, public thanks, awards | Reinforcing effort and good behavior |
| Opportunity | Promotions, training, interesting projects | Rewarding growth and commitment |
| Autonomy | Flexible hours, more freedom, trust | Rewarding reliable, skilled people |
| Social | Inclusion, access, closer relationships | Building loyalty and belonging |
Leaders at home, in churches, and in community groups also hold this power through praise, trust, and responsibility, even without money to give.
Examples of Reward Power in Action
These scenarios show rewards working well and backfiring.
A Software Team’s Recognition Program
A Salt Lake City software company lets engineers nominate peers for small monthly awards tied to helping others.
Collaboration improves because the reward targets the behavior the company actually wants.
A Retail Chain’s Sales Contest
A UK retail chain rewards staff with bonuses for selling extended warranties.
Sales rise, but customer complaints rise too, as some staff push warranties onto customers who do not need them. The reward measured the wrong thing.
A Parent and Homework
A parent in Ohio pays a child five dollars for every completed homework assignment.
Within months, the child refuses to do extra reading unless paid, a small example of rewards crowding out interest.
Rewards work when they reinforce what truly matters and fail when they replace it.
How Rewards Affect Motivation
Rewards change behavior, a finding behavioral psychologists established decades ago, but the effect can fade once the reward stops.
A 1999 meta-analysis of 128 experiments by Edward Deci, Richard Koestner, and Richard Ryan found that expected tangible rewards reduced people’s intrinsic motivation for tasks they already found interesting.
Positive feedback, by contrast, increased both interest and people’s choice to keep doing the task.
Some researchers have disputed how large the undermining effect is, but a practical lesson stands: sincere praise can strengthen motivation, while paying people for something they enjoy can weaken it.
At work, a 2004 meta-analysis by Timothy Judge and Ronald Piccolo found contingent reward was strongly linked to positive outcomes.
Contingent reward means clearly rewarding people for meeting agreed goals, and on some outcomes it beat inspiration-based transformational leadership.
Rewards also help build habits, since behavior that brings a satisfying result is more likely to be repeated, a principle explored in how habits form and stick.
Advantages of Reward Power
- Clear motivation: People know what is valued and what earns recognition.
- Quick results: Well-targeted incentives can change behavior fast.
- Positive atmosphere: Rewards feel better than threats and build goodwill toward the leader.
- Fairness when done right: Linking rewards to clear goals shows people that effort pays off.
- Talent retention: People stay where they feel valued and fairly paid.
Disadvantages and Risks
- Rewarding the wrong thing: People chase what is measured, even at the cost of quality, teamwork, or honesty, as the sales manager found.
- Crowding out interest: Paying for tasks people already enjoy can make those tasks feel like a chore.
- Entitlement: Regular bonuses can start to feel like a right, so removing them feels like punishment.
- Favoritism: Rewards given unfairly breed resentment and distrust.
- Dependence on the giver: When rewards stop, effort may stop too.
Rewards in Nigerian Workplaces
In many Nigerian organizations, rewards have a strong personal dimension, from a boss’s public praise to support during family events such as weddings and burials.
These gestures can build deep loyalty, but when rewards flow only to favorites or relatives, they breed resentment and damage trust.
In my observation, Nigerian workers value fairness in how rewards are shared as much as the size of the reward itself.
Rewards in Remote and Hybrid Teams
When teams work apart, good work is easier to overlook, so recognition matters even more.
Public thanks in team chats, shout-outs in video meetings, and quick personal messages keep effort visible.
Make sure remote staff get the same access to promotions and interesting projects as people in the office, since uneven rewards quietly breed resentment.
How to Use Reward Power Well
The best leaders treat rewards as one tool among many, as described in the core skills of leadership.
- Reward What Truly Matters: Link rewards to quality, teamwork, and honesty as well as numbers, so people are not tempted to cut corners.
- Make Criteria Clear and Fair: Tell everyone upfront what earns a reward, and apply the same rules to all.
- Praise Specifically and Sincerely: Say exactly what the person did well, since specific feedback supports motivation more than vague compliments.
- Mix Tangible and Intangible Rewards: Combine fair pay with recognition, growth opportunities, and trust, rather than relying on money alone.
- Be Careful Rewarding Enjoyable Work: For tasks people already love, recognition and autonomy usually work better than cash bonuses.
- Reward Promptly: Recognition given soon after good work is more meaningful than praise saved for an annual review.
- Build Personal Power Too: Rewards work best alongside trust and respect, which is why wise leaders also invest in influence people give willingly.
Signs Your Rewards Are Working
Watch for these signs that your approach is healthy.
- People understand exactly what earns recognition.
- Rewards feel fair to those who do not receive them.
- Team members help each other rather than competing for bonuses.
- Good behavior continues even when no reward is offered.
- People mention recognition, not just pay, when asked what keeps them motivated.
If the opposite is true, review your criteria before adding more incentives.
Using Rewards at Home
Parents use rewards daily, from praise for homework to treats for chores.
Favor specific praise for effort over prizes, since paying children for every chore risks teaching them to help only when paid.
The meta-analysis above found tangible rewards were more harmful to children’s motivation than to college students’.
Praise that names effort and strategy, such as “you kept trying different ways to solve that,” gives children something they can repeat.
Small privileges, like choosing the weekend activity, can reward responsibility without turning family life into a transaction.
Conclusion
The sales manager’s bonus worked until it rewarded pushiness over service, and staff stopped doing anything that did not pay.
Reward power motivates best when rewards are fair, clear, prompt, and tied to what truly matters.
Research suggests sincere praise builds motivation, while expected cash rewards for enjoyable tasks can weaken it.
This week, give one person specific, sincere praise for something they did well, and notice how they respond.
Frequently Asked Questions
What is reward power?
It is the ability to influence others by giving them something they value, such as pay, praise, promotions, or opportunities, or by removing something they dislike.
What is an example of reward power?
A manager who offers bonuses for meeting targets, a teacher who praises good work, or a parent who grants extra privileges for responsibility all use it.
Can rewards reduce motivation?
Yes, a meta-analysis of 128 experiments found expected tangible rewards reduced intrinsic motivation for interesting tasks, while positive feedback increased it.
What is the difference between reward power and coercive power?
Reward power motivates by offering benefits, while coercive power relies on threats and punishment; rewards tend to build goodwill, while threats tend to build resistance.
Pious Clements writes about character, conduct, and the deeper questions of how a life is lived. He is the founder of The Conducts of Life, a site built on the belief that how you behave, not what you achieve, defines who you are. His writing draws from decades of observation, lived experience, and serious thinking about human nature, ethics, and self-development. He writes to be useful, not popular.
This was a very interesting and thought provoking read. The Reward Power is a constant in all aspects of life and certainly essential in social interactions.
You are very correct Debbie. Reward Power is a good way to get people interested and motivated, but also should be used with caution to avoid dependency and its use to arm-twist leaders.
Thanks fro stopping by.