Intrinsic and extrinsic rewards are both important when it comes to the discussion of compensation. . The goal of this activity is for you to understand that while money is important, it is not the only motivator. Herzberg's theory helps to explain the idea that pay is a necessary (hygiene) factor but frequently insufficient to promote employee motivation. • In healthcare and public organizations, managers need to be talented and creative in designing rewards because financial capacity is limited and regulations constrain the ability to hand out rewards. o Brainstorm the many types of nonfinancial motivators, particularly from your personal experiences. o What types of intrinsic motivators can be utilized during tight financial times?