11 The IERP® Monthly Newsletter August 2018
In this era of smartphones, apps, mobile internet, and an oversaturation of media, our devices have come to affect the release of dopamine into our systems -- dopamine helps to regulate the part of our brains that controls reward, motivation and pleasure. As a result, attention and engagement have become rare commodities to vie for -- including the workplace. Employee engagement is a good indicator of the success of a company’s processes. However, based on a study by Gallup, it’s been found that only 13% of the global workforce can be considered highly engaged. As Gen Y adults come to more prominence in the global economy, it’s important to consider the ways a company can enhance workplace productivity.
Pillai noted that there are tangible financial benefits to gamification strategies. Insurance company Swiss Re, for example, saw a $3 million reduction in data storage costs when it teamed up with an app developer to encourage employees to delete their old data off their network. They also drastically reduced printing and paper consumption costs by normalizing the use of gamification software that prompted employees to think twice before printing.
Amidst the myriad of claims that they drive participation and engagement, do gamification strategies live up to their hype? Pillai observes that leaders often fail to see results when they have inflated expectations of what gamification can do for their organization. For gamification strategies to work, they must be aligned with both employee expectations as well as company objectives -- in this sense, they are particularly well-suited for Enterprise Risk Management, which espouses enterprise-wide cohesion that works towards common objectives.
At the bottomline, gamification is about influencing human behavior; it’s about understanding motivation. Gamification has been become increasingly commonplace, but organizations have to employ it with purpose for it to be effective, both to improve work culture and create business value.
Gamification Strategies in ERM
Ramesh Pillai, Group Managing Director, Friday Concepts Risk Consulting
As with any tool or strategy, there are potential risks to employing gamification. The design of any software for employees should create a positive environment: be careful not to motivate some at the expense of demotivating others. The use of gamification strategies should enhance work, and not exploit.