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Impact of gamification in driving organisational success

Writer: NUS Human Capital SocietyNUS Human Capital Society

The quest for gamification:


As early as the early 2010s, the trend of gamification began taking root in the workplace. Fast forward to 2024, and the movement has certainly gained significant traction and amassed remarkable levels of recognition. But what exactly is gamification? Gamification is the process of “adding game elements to non-game settings”. This includes adding a scoring component to one’s day-to-day duties, introducing rewards for an employee's performance, or even inciting a little friendly competition between co-workers to see who can accomplish a task quicker. This  increases motivation and engagement levels for users, to drive behavioural change and attain specific goals.


Letting the numbers speak:


As a rapidly growing industry, the global gamification market has seen continual growth in the past year of 2023, increasing from a value of USD$14.87 billion to USD$18.63 billion. Due to reports of major industry players like Microsoft Corporation, AON PLC, and Axonify Inc. continuing to invest in the further development and advancement of gamification systems, it is projected that by 2025, the market size will have grown so significantly that it would be valued at a whopping $30.7 billion. Additionally, the positive feedback garnered from both employees and employers alike, across multiple regions, has only acted to fuel further positive forecasts that the market will only continue to expand from here


Fig 1. Forecast of Gamification Market Growth


Levelling up with gamification:


Increased motivation and performance

The addition of elements typically found in games adds a more fun and competitive element to work, especially for tasks that can seem menial or repetitive. In effect, this can make jobs feel less tedious and more interesting, for example, by implementing a points system and tagging a certain number of points for every task that an employee accomplishes. 


Furthermore, the creation of reward systems, such as badges or leaderboards, will also aid in employee recognition. Employees feel more seen and appreciated by their employers and will be motivated to keep up their good work, giving rise to higher employee engagement.


Hands-on learning experiences

Companies can tap into gamified simulations in order to give employees realistic on-the-job training, experiences that will require them to think outside of the box and challenge their decision-making, critical thinking and innovation. In doing so, employees are exposed to a more well-rounded and holistic learning experience. 


Additionally, this will also better prepare them for realistic scenarios in the workplace where employees may be forced to think on their feet and cope with the pressure of make-or-break decisions. By pre-emptively including such scenarios as part of their training, employers are giving employees the chance to hone both their hard and soft skills in a way that will set them up for success in the future.


Communication and collaboration

Just as many games are team sports that require a cohesive and coordinated effort for the sake of accomplishing certain tasks, the workplace is no exception. Gamified experiences will hence provide employees with a common goal that the team can work towards. In collaborating within such a low-stakes environment, employees are free to experiment and make mistakes so that they are able to identify communication errors and begin working to solve them. By sharing information and resolving conflicts as soon as they arise, employees can hence give rise to stronger team dynamics and a more close-knit team.


Appeal to the younger generation

As the first few batches of Gen Z employees are entering the workplace, the implementation of gamification in the workplace is set to perfectly complement this change. Known as the generation that is “digitally-tethered”, gamified tasks that utilise gaming mechanics will be most suited for such digital natives. Furthermore, one key aspect of the Gen Z mentality is the emphasis on instant gratification and real-time feedback, all of which are aspects that are satisfied by gamification, thus making it one of the more uniquely compatible workplace improvements.


How HR sprinkles the magic of gamification:


Employee Training & Development 

Incorporating gamification into employee training can enhance the learning experience, fostering increased engagement and enjoyment which improves retention of knowledge and skill development. For instance, L’Oreal, one of the largest cosmetics companies, partnered with Growth Engineering to build a gamified mobile application to create bite-sized gamified modules to allow their Beauty Advisors to complete a micro-module on their phones where they can accumulate points and badges at the end of the course. As such, L’Oreal surpassed their initial training and ROI targets within the first 10 months of launch as it exceeded its learning targets. Gamification allows different organisations to tailor their learning games to their unique training requirements effectively. 


Wellness Programmes 

These gamification challenges can extend beyond conventional wellness programs by transforming exercise, nutrition, and mindfulness activities into interactive quests. Furthermore, it has proven to result in “significant clinical improvements” in measures like blood pressure, perceived stress, insomnia, and fatigue. For instance, BP, one of the leading oil and gas corporations, hosted an initiative “BP Million Step Challenge” where employees are incentivized to accumulate at least a million steps over a specified period using the company's Fitbit activity trackers. This challenge garnered a 2:1 ROI for the company which not only promoted physical health but also reinforces the company’s commitment to cultivating a healthy and active workforce.


Employee Engagement 

According to Medium, gamification raises employee engagement levels by 48% as 90% of employees are more productive when they use gamification. Engaged employees lead to more productive employees who would attain better business results. For instance, Cisco, one of the leading IT firms, created a "myPlanNet" simulation game that allows players to step into the role of CEOs of service providers, where they make decisions and strategize to manage their virtual businesses effectively. This has significantly driven employee engagement and motivation where they saw a 15% reduction in call time and contributed to sales improvements ranging from 8% to 12%, highlighting the effectiveness of gamification in driving engagement, improving performance, and achieving business objectives. By adopting gamification, Cisco has successfully enhanced its virtual global sales meetings and call centre operations.


When the side quest goes wrong:


Unnecessarily competitive workplace dynamics

Since the concept of “winners and losers” is an inherent concept of games, this can also apply to gamification elements within the workplace. Even unintentionally, any overemphasis on the more competitive components of gamification, such as badges or leaderboards, can give rise to a more ruthless and cut-throat work environment. 


While the “winners” may get to bask in glory, the “losers” may feel more discouraged and become disengaged from their work as they may conversely feel unappreciated by their peers and superiors. Additionally, the rewards and benefits that “winners” get to enjoy may overexpose them to competitive pressures. In desperate attempts to stay at the top, they may turn to a survival-of-the-fittest mentality, where employees may turn to unscrupulous loopholes and exploits, or even flat-out cheating, in a way that will undermine the integrity of the gamification system


Lastly, a side effect of “solo games” can create a “every man for himself” dynamic within the workplace. This can act to disrupt and destroy the painstakingly-nurtured cohesiveness within teams and groups, that may be counterproductive towards cooperation and collaboration when it comes to “group-based games” or team-based projects.


Absence of regular analysis & reporting

Without ongoing measurement and analysis, it becomes challenging to determine whether the gamification efforts are effectively meeting their objectives. This lack of insight into the efficacy of gamified activities also hampers the ability to make informed decisions about resource allocation and strategic adjustments. Furthermore, without a structured framework for continuous analysis and reporting, organisations may miss out on the benefits that gamification offers. By implementing regular evaluations and reporting, companies can better understand the impact of gamification on their workforce and make the necessary adjustments to meet organisational goals.


Ultimately, without a robust framework for ongoing analysis and reporting, companies may struggle to maximise the potential benefits of gamification, including enhanced employee motivation, productivity, and satisfaction.



How to level up your company's success with gamification!


Efficient feedback 

By implementing a feedback system that prioritises frequent and constructive feedback, employees can receive timely insights into their performance and progress towards goals in real-time. This feedback enables individuals to refine their strategies and efforts in alignment with organisational goals. Rather than fostering unnecessary competition, this approach emphasises collaboration and mutual support, empowering employees to enhance their skills and contribute meaningfully to shared objectives. Additionally, by promoting transparency and accountability, this feedback loop encourages individuals to take ownership of their progress and development, ultimately fostering a positive and cohesive work culture.


Clear & measurable objectives 

Before implementing gamification strategies, organisations should establish clear and measurable objectives that align with their business goals. This involves identifying key performance indicators (KPIs) and defining metrics to track progress and evaluate success. By clearly outlining these objectives, businesses can ensure that their gamification efforts are targeted and contribute to overall organisational success. Additionally, having well-defined objectives provides a framework for designing gamification elements that directly support desired outcomes, whether it is improving employee engagement or enhancing wellness programs. By aligning gamification efforts with specific business goals, organisations can maximise the impact of their initiatives and drive meaningful results.


Proceed with caution! Our Conclusion on Gamification: 


In conclusion, gamification offers organisations a powerful tool to enhance employee engagement, motivation, and productivity. By incorporating game-like elements, organisations are able to transform routine tasks into enjoyable and rewarding experiences, fostering a culture of innovation and collaboration. However, to fully realise the benefits of gamification, it is crucial that organisations implement a well-designed strategy supported by regular analysis and reporting. Through continuous evaluation, companies can unlock the full potential of gamification to achieve their objectives and thrive in today's dynamic business landscape.


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