Changing nature of work leads to rise of gamification

As businesses grapple with rising employee disengagement, which hit a nine-year high in the U.S. in 2022, some companies are turning to gamification to boost motivation and performance. By incorporating elements of fun, play, rules, uncertainty, and challenge into the workplace, gamification taps into employees' innate desires for autonomy, competence, and relatedness. The gamification market is expected to grow by 27.4% annually between 2020 and 2025, with successful implementations already seen at major companies like Uber and Southwest Airlines.

Recent research has shown that a well-designed "single lottery" probabilistic bonus program, which combines goal pursuit and uncertainty resolution, can effectively increase worker motivation and performance, particularly among lower-performing employees. To successfully implement a gamification strategy, managers must ensure that employee output is easy to measure objectively, the program does not replace existing bonuses, and the rewards are frequent, modest, and transparently tied to performance. By leveraging gamification, organizations can address the critical need for more dynamic and inclusive engagement strategies in modern management.

• Why employee experience matters for customer experience. (HR Dive)

However, while gamification can help alleviate boredom and boost short-term productivity, it is important to recognize that it may come at the cost of long-term productivity. Research from the University of Notre Dame suggests that trying to stifle boredom can prolong its negative effects, and that alternating boring and meaningful tasks is a more effective approach to maintaining overall productivity. Therefore, managers should carefully consider the nature and sequence of work tasks when implementing gamification strategies, ensuring that employees have opportunities to engage in meaningful work that restores lost energy and minimizes the cumulative effects of boredom over time.