Blog 3- Reward Systems Gamification: The Future of Employee Motivation

   

                         

In the fast-changing modern working environment, organizations keep on exploring new ideas on how to engage and be productive among their employees. This has become highly popular through one of the approaches which has been known to be gamification of reward systems- combining aspects of game design to non-game scenarios as a way of motivating and engaging employees. This new approach is changing the way businesses consider recognition, performance management and work motivation. 

The Knowledge of Gamification in the Workplace 

Gamification uses game mechanism like points, badges, leaderboards, and challenges to business processes and reward systems. Instead of seeing work as a progression of a menial process, gamification reshapes work as something to be accomplished, to compete in, and to advance. A study conducted by Deterding et al. (2011) developed the initial definition of gamification as the application of game design elements in non-games, which brings to the fore its capacity to affect user behaviour and enhance levels of engagement in different fields. 

The psychological basis of gamification is relatively similar to the Self-Determination Theory, which states that human motivation is based on three innate psychological needs: autonomy, competence, and relatedness (Ryan and Deci, 2000). Gamified reward systems respond to these needs by offering employees options (autonomy), giving them clear feedback on progress (competence), and the ability to interact socially in the form of team challenges (relatedness). 

The Logistics of Game-Based Rewarding Systems 

The best gamified reward systems have numerous game features which operate in synergy to motivate interaction. Points systems offer direct feedback and measurable results of success, whereas badges are pictorial demonstrations of success and milestones. Leaderboards present a certain level of social comparison and healthy competition, but according to the research by Hamari et al. (2014) in their extensive literature review, competitive aspects should be well-balanced to prevent demoralization of lower-performing staff. 

Progress bars and levelling systems exploit what behavioural economists refer to as the endowed progress effect that is when individuals feel more motivated to finish something after having already made some progress. Employees will be more intrinsically motivated and will be more inclined to continue their work when they see that they are making progress toward some goals. 

Evidence of Effectiveness 

 

The empirical data provided on the effectiveness of gamification in employee motivation is convincing. The meta-analysis by Sailer and Homner (2020) revealed that gamification has a beneficial effect on that cognitive and motivational results, especially when it is adequately aligned with organizational goals. They found that gamified systems can raise task engagement by about 48% and can enhance learning outcomes by up to 34% relative to standard methods. 

Nevertheless, gamification is not effective all the time. Koivisto and Hamari (2019) revealed that the quality of implementation and contextual factors are critical to determine the effectiveness of gamified reward systems. Their analysis of gamification in the workplace showed that systems that have a valuable narrative and social elements yield much better results as compared to those ones that only use points and badges. 

Principles of Designing a Successful Implementation 

The process of developing a successful gamified reward system needs to be well-designed and not limited to superficial game-based aspects. First, rewards should be significant and corresponding to what employees themselves appreciate. Nicholson (2015) research notes that it is essential to implement meaningful gamification as it centers on the design that is user-oriented and focuses on the processes instead of superimposing points and badges on them. 

Second, the feedback should be timely and precise. It is important that employees know what behaviours are being rewarded, and they are to be rewarded in real-time. This is consistent with the reinforcement theory and is used to enhance the relationship between the effort and reward. 

Third, the system must serve the various types of players and motivational profiles. Marczewski (2015) has proposed six types of players of the systems where gamification is used, where the first group includes achievers who strive to master, and the last group is the group of socializers who appreciate other people. Good reward systems offer various avenues to achievement that will attract a wide range of motivation factors. 

Prospective Pitfalls and Reflections 

Gamification is not without its challenges even though it promises. Intrinsic motivation may be eroded by over-rewarding it extrinsically- what is referred to as the over justification effect (Deci et al., 1999). By dedicating themselves to points or leaderboards, employees risk forgetting the value and significance of the work they do. 

Moreover, gamification which is poorly designed can have unintended consequences. Ratings and competitions could also create an unhealthy competition or demotivate teamwork. Reward systems that encourage quantity but not quality may encourage short cuts or lack of attention to detail. Companies should also pay close attention to gamified systems so that they support the intended behaviour without establishing perversive rewards. 

Gamified Rewards in the Future. 

With the ever-changing nature of technologies in the workplace, gamification is growing more advanced. Machine learning and artificial intelligence make it possible to create personalized gamification experiences to conform to personal preferences and performance trends. AR and VR technologies provide reward experiences that allow people to have an omnipresent experience that was not available before. 

The success in gamification is not about the technology, but rather the knowledge of the basic psychology of humans and organizational culture. Gamified reward systems, when thoughtfully designed and strategically implemented, can turn around employee motivation, making them work in an environment where achievement, growth, and recognition are incorporated into the everyday experience. 

Conclusion 

Gamification is an effective method of modernizing the reward system of employees, yet it is not a magic bullet. The success is designed with great care and assimilated with regular evaluation and alignment with the larger organizational values. With the help of the knowledge of academic literature and the emphasis on the quality of engagement as opposed to shallow game designs, it is possible to devise a reward system that would really inspire the employees and lead to the lasting performance increase. 

References  

Deci, E. L., Koestner, R., & Ryan, R. M. (1999). A meta-analytic review of experiments examining the effects of extrinsic rewards on intrinsic motivation. Psychological Bulletin, 125(6), 627–668. https://doi.org/10.1037/0033-2909.125.6.627 

Deterding, S., Dixon, D., Khaled, R., & Nacke, L (2011). From Game Design Elements to Gamefulness: Defining Gamification. In Proceedings of the 15th International Academic MindTrek Conference: Envisioning Future Media Environments (pp. 9-15). ACM. 

https://doi.org/10.1145/2181037.2181040  

Hamari, J., Koivisto, J., & Sarsa, H. (2014). Does Gamification Work?—A Literature Review of Empirical Studies on Gamification. 2014 47th Hawaii International Conference on System Sciences, Waikoloa, HI, 6-9 January 2014, 3025-3034. 

https://doi.org/10.1109/HICSS.2014.377  

Koivisto, J., & Hamari, J. (2019). The rise of motivational information systems: A review of gamification research. International Journal of Information Management,45, 191–210.  https://doi.org/10.1016/j.ijinfomgt.2018.10.013 

Marczewski, A. (2015). Even Ninja Monkeys Like to Play: Gamification, game thinking and motivational design (illustrated edition). CreateSpace Independent Publishing Platform. 

Nicholson, S. (2015). A Recipe for Meaningful Gamification. In Gamification in Education and Business (pp. 1-20). Berlin: Springer. 

https://doi.org/10.1007/978-3-319-10208-5_1  

Ryan, R. M., & Deci, E. L. (2000). Self-determination theory and the facilitation of intrinsic motivation, social development, and well-being. American Psychologist, 55(1), 68–78.  https://doi.org/10.1037/0003-066X.55.1.68 

Sailer, M., & Homner, L. (2020). The gamification of learning: A meta-analysis. Educational Psychology Review, 32(1), 77–112. https://doi.org/10.1007/s10648-019-09498-w