There are more and more articles on gamification, the use of game design techniques and mechanics to solve problems and engage audiences. I saw an article on LinkedIN News that was a good overview of the subject including 3 companies that are making some noise in this space. They are Badgeville, Bigdoor, and Bunchball. In the article they cite a Gartner report that advises all CIOs to have gamification on their radar and a prediction from M2 Research that the gamification market will be close to $3B by 2016. While there may be huge growth in gamification of process such as software development and social media applications such as Foursquare, my belief is that the real growth potential is with employee measurement/performance reviews. The target markets for gamification are the Millennials born between 1980 and 1995 and the Generation Zs born 1996 and after. They grew up with digital devices and one of their favorite pastimes is playing games. While you may think this activity is a complete waste of time, the feedback/reward in most games has established a model of expectation in these 2 generations they will take with them to the workplace. While Generation Z are a bit young for the workforce now, Millennials will be 50% of the workforce in 2014. Given their non-traditional approach to working, it is becoming more apparent that firms must get aggressive in meeting the needs of this growing resource pool to increase overall productivity and reduce turnover.
Bunchball has created a white paper that offers a methodology for companies to use as a model for providing feedback and rating employees using gamification principles. Here are the basics:
Performance
- Real-Time Feedback - In a game, anytime you take an action you get immediate feedback positive or negative. The current state of once-a-year reviews won't work for Millennials.
- Transparency - In games, players can always see where they and others stand. Millennials in the workplace want constant metrics on how they are doing.
- Goal-Setting - In a game the goal may be to "save the princess" with sub-goals like "get to the next level". At work a sense of progress, however small, will be critical in keeping Millennials highly engaged.
Achievement
- Badges - Online you have an identity or avatar. At work your identity is your achievements. If you receive small tokens of achievement (badges) you are motivated to attain more, increasing your productivity.
- Leveling Up - Badges are indicators of specific accomplishments, levels are a means of indicating more long term achievements. Employers my consider adding more levels to their structure to accomplish this.
- On-Boarding and Mastery - Millennials will NOT read instruction manuals. They are used to being able to get instant instruction at any point within a game. Employers need to learn how to provide easy immediate access to teaching aids; this will not be easy.
Social Interaction
- Competition - Online games always involve competition. It's there in the corporate world as well whether or not the employer identifies it.
- Teams - Being part of a team is motivating whether you are playing a game or as an employee participating in a cross-functional team.
I believe any employee of any age would flourish in this rating system. The problem is the cost of implementation and acceptance by older employees and management. The carrot here is increased productivity and reduced turnover. To put the cost of turnover in perspective, the following came from an article in WebProNews:
70% of Millennials leave their first jobs within 2 years
Turnover costs (as a share of their salary)
30% - 50% for entry level employees
150% for mid level employees
400% for specialized employees
My opinion is that firms should deploy bi-directional mentoring immediately but also begin developing a gamification model for the not-too-distant future. Those that do will have more motivated employees and be more competitive in the marketplace.
