Gamification Defined

Gamification is defined by Investopedia as, “the incentivization of people’s engagement in non-game contexts and activities by using game-style mechanics.” First coined in 2002 by game designer Nick Pelling while incorporating game elements into ATM and vending machines, gamification became mainstream by 2009 and has only grown as a strategic approach in HR and business.

With employee engagement and productivity a high priority for enterprises, gamification bridges the employee experience with enterprise needs. It can turn mundane tasks and processes, such as training and upskilling, reviewing corporate and HR policies, rolling out new products and services, and even applying for a job within the organization into engaging activities.

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A well-rounded definition of employee engagement comes from Engage For Success: “Employee engagement is a workplace approach resulting in the right conditions for all members of an organization to give of their best each day, committed to their organization’s goals and values, motivated to contribute to organizational success, with an enhanced sense of their own well-being.”

Powerful, Yet Underutilized

It is that commitment toward oneself and the enterprise that makes employee engagement such a powerful workforce approach. Yet, as a Gallup survey indicates, only 36% of U.S. employees are engaged in their work and workplace. The number is even lower on a global scale, with only 20% of employees engaged at work.

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There’s no denying that recessionary fears are resulting in sometimes necessary cost-cutting strategies for businesses across the globe. And there’s no way around budgetary concerns when the economy is still at an unsettled point only three-and-a-half months into 2023. Layoffs are an unfortunate attribute of the corporate arena, in which headcount is reduced in mass quantities as a result of poor performance, market conditions (like we’re experiencing today), a global health crisis (hello, pandemic), and a slew of other reasons.

The world’s biggest and most popular fast-food chain will always weather whatever storm they face, but even McDonald’s has limitations on how they can operate in an uncertain economic climate. Alongside global organizations like Amazon, Goldman Sachs, Meta, Google, etc., the golden arches now faces their turn in the “let’s reduce headcount to save dough” game that so many other enterprises have faced over the past several months.

While layoffs can be heartbreaking and disruptive, they are a cost of business. No one would fault McDonald’s or any other large global entity for slashing their workforce in 2023’s rocky economic road. However, there’s a very, very fine line between a layoff and cruelty…a line that McDonald’s crossed just this past week.

We’re not lovin’ this. At all.

As stated above, yeah, layoffs sometimes need to occur for a business to move forward. Especially in the world we’re living in today. Although costs need to be front-and-center, there’s a right way to conduct layoffs and a completely, erratically wrong way to do so. Guess which way McDonald’s chose?

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However, essential to employee experience is understanding that it goes beyond employee satisfaction. Rather, it is a strategic imperative that directly influences organizational culture, success, and the ability to navigate an ever-changing business landscape.

Employee Experience Begins and Ends with Engagement

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We’re now two months into the second half of 2023 and economically speaking, things are looking positive. The Bureau of Economic Analysis reports that GDP grew 2.4% in the second quarter of 2023. The labor market remains tight with unemployment at 3.6%, a rate not witnessed in decades. However, according to the U.S. Bureau of Labor Statistics, the tight labor market provides the Federal Reserve with the flexibility to continue raising interest rates to fight inflation. Currently, inflation rests at 3%, a percentage point higher than the Federal Reserve’s longer-run goal of 2%.

Does the state of the current U.S. economy equate to a “soft landing” and the evasion of a recession? Maybe, maybe not.

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Disney’s executives followed a similar path, only much earlier in January, and, with four mandated days-in-office rather than the three dictated by Amazon. Salesforce CEO Marc Benioff mandated three days in office in the midst of the company sunsetting its Future Forum consortium, which, SOMETHING enough, found that flexible working environment were incredibly conducive to productivity and employee engagement.

And, yeah, we all know Elon Musk’s feelings on remote work during his tumultuous time thus far at Twitter. There’s also this nugget from a recent Fortune article:

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A well-rounded definition of employee engagement comes from Engage For Success: “Employee engagement is a workplace approach resulting in the right conditions for all members of an organization to give of their best each day, committed to their organization’s goals and values, motivated to contribute to organizational success, with an enhanced sense of their own well-being.”

Powerful, Yet Underutilized

It is that commitment toward oneself and the enterprise that makes employee engagement such a powerful workforce approach. Yet, as a Gallup survey indicates, only 36% of U.S. employees are engaged in their work and workplace. The number is even lower on a global scale, with only 20% of employees engaged at work.

However, for those enterprises with a fully entrenched employee engagement system, the results speak for themselves. According to Gallup, those leading organizations are experiencing the following benefits:

• An increase of 18% in productivity (sales)
• An increase of 23% in profitability
• A decline of 40% in quality issues (defects)

Achieving these results requires engagement with every worker. With nearly half (nearly 48%) of today’s enterprises comprised of contingent workers (per Ardent Partners and Future of Work Exchange research), employee engagement must include this critical workforce segment. When faced with the possibility of losing extended talent following a project or other initiative, employee engagement could be the competitive differentiator to retain them.

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The four-day work week has long been perceived as a savior for productivity and a boost for overall employee engagement, allowing employees with the option to savor three-day weekends and spend more time with their families and loved ones. An “automatic” additional day off every week would certainly improve mental health, employee wellness, and help alleviate some of the issues that workers have been dealing with over the course of the past two transformative years.

I was highly encouraged by a study run by the Reykjavík City Council in Iceland in which 2,500 employees participated. “Workers reported feeling less stressed and at risk of burnout, and said their health and work-life balance had improved. They also reported having more time to spend with their families, do hobbies and complete household chores,” the BBC article stated.

Here’s the caveat, though: the Iceland trial took place from 2015 to 2019. And, the upcoming UK experiment will take place during a pandemic.

Nearly every facet of both life and business has been altered in some profound manner since March 2020. Many of the attributes of work, including traditional commutes and afternoon lunches with peers, were taken for granted the second our cities and towns went in lockdown. In fact, with the Omicron variant raging across the United States and other countries around the world, we still those aspects for granted whenever there’s an exposure or infection and we’re quarantining for five, seven, or ten days (depending on country-specific guidance and restrictions).

The Future of Work Exchange was created with many concepts in mind, but one core goal was to point to the forward-thinking ideas, technology, and strategies that support work optimization and the Future of Work movement. “Flexibility” is a linchpin to how companies enhance how work is done in today’s evolving business environment, and, yes, that does include progressive approaches such as the four-day work week. This mode of work will have its benefits, no matter when it’s launched; employees will feel more engaged, workers will be able to connect more with their loved ones, and, yes, there is the fact that staff will work “smarter, not harder” and improve overall productivity.

There are reasons, though, why right now (meaning, literally, right now) may not be the proper time to launch such an experiment. Here’s why:

• The prevalence of remote and hybrid work is translating into a failure to “disconnect” from work. I can attest to this first-hand: there are typically two or three evenings per week (sometimes more) when the bright lights of my laptop illuminate my home office while I’m listening to a new album or film score, typing away and not noticing that it’s 1am. For many workers that are now part (or have been part of) remote or hybrid infrastructures, the issue of “burnout” has always been an issue. Sometimes, no matter what the calendar looks like, a worker is going to put in well over 40 hours (and possibly close to 50) if they cannot disconnect from their strategic projects and initiatives. It’s a much different story in light industrial and similar industries, because…
• Four-day work weeks are not “one-size-fits-all,” as in-person operations heavily favor a shortened calendar (with some risk). When forklift drivers, picker-packers, and those directly on the shop floor have the ability to condense their work into four instead of five days and maintain their productivity, it’s a win-win for both employees and executives. As stated above, however, white collar workers are not guaranteed to not work on those fifth days given the easy access to enterprise systems and their home office setups. The “risk” for non-remote employees is quite straightforward: what happens when manufacturing targets aren’t hit, or when “stow” goals are off at the end of the week? There is inherent risk built into four-day work weeks for these types of industries, that when mitigated, will surely be outweighed by other benefits.
• There is too much uncertainty regarding the pandemic and its immediate workforce ramifications. “The Great Resignation,” which we call the “Talent Revolution,” is masking the true foundation of the long-term labor market. There is no way to conduct specific types of work-based experiments when, in the United States alone, over four million workers are resigning monthly from their positions. There are still big-name CEOs and executives that eschew remote and hybrid work, not to mention the fact that COVID cases are on a seven-day average of over 800,000, nearly triple the amount during the horrible 2020-2021 winter surge. It may be too much to say that COVID needs to be endemic before businesses begin tinkering with four-day work weeks, however, the next couple of months will prove to be yet another series of uncertain days when businesses will flirt with vaccine mandates for employees (and customers), staggered opening depending on caseloads, and other reactions to an ongoing public health crisis.

There are many other issues with the shortened work week that are linked to the “customer experience,” in which a day in which employees aren’t manning call centers or “Contact Us” chats could negatively impact relationships with key buyers. This has been a key pivot point for artificial intelligence in the workplace, allowing AI-led interactions help customers. As this form of AI becomes more prevalent (and accessible), businesses will have an easier time moving to the condensed work week. For now, however, the pandemic brings too much disruption, especially in the throes of the Omicron surge.

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