Gartner defines gamification as “the use of game mechanics and experience design to digitally engage and motivate people to achieve their goals.” Sounds like a guaranteed win, doesn’t it? A quick Google search certainly suggests so, with countless articles extolling its benefits and many from tech companies that thrive on gamification themselves.
The numbers are compelling: Deloitte reports that team gamification can boost employee engagement by 48%, while research in the Journal of Applied Psychology shows gamified learning can enhance retention rates by up to 90%.
So, is the verdict in? Should L&D professionals everywhere roll out leaderboards, badges, and rewards, and call it a day?
If surface-level metrics are the goal, then yes. But what about the long-term impact? Is learning actually embedded, or are we just leaning on vanity metrics and reinforcing a culture of instant gratification?
Let’s take a closer look at the hidden pitfalls of gamification. Because while it can be a powerful tool, it’s not without its dark side and it may be time to rethink how it’s being used in workplace learning.
1. The Trap of Extrinsic Rewards
Yu-kai Chou, a leading voice in gamification, introduces the Octalysis Framework, which differentiates between “white hat” and “black hat” motivators. Both tap into our core motivational drivers (avoidance, creativity, scarcity, curiosity and beyond). But whereas white hat strategies, ‘create a sense of wellbeing, higher purpose, meaning and happiness,’ black hat motivators ‘create a sense of urgency in short-term user engagement and make users feel obsessed, proactive and focused.’ Though not always, they can rely on things like fear and manipulation.
Gamification often leans heavily on the black hat side, with external, short-term motivators taking centre stage. I saw this in action during a competitive stint at a data-entry job. The game? Be the first to complete ten applications and claim a prize. What did we actually learn? That speed trumps quality, short-term rewards rule, and grudges grow quickly against the person with the fastest fingers.
Sure, these tactics might spark initial enthusiasm. But at what cost? They can easily overshadow intrinsic motivation, that genuine drive to learn and improve for its own sake. In our case, we didn’t become better at our jobs. If anything, we invited errors, prioritised winning over quality, and added unnecessary risk to the business.
2. When Winning Overshadows Learning
Rajat Paharia, often referred to as ‘the father of gamification’, believes that if we focus on gaining loyalty to the method (the game element), we’re not going to build true loyalty to the learning and the business. There’s a disconnect between the tool and the purpose.
What happens when learners are speedy, engaged, and having fun but fail to develop the required knowledge, skills, or behaviours? Where is that pain going to show up?
Imagine a workplace safety training programme gamified with leaderboards and rewards. Employees rush through modules to secure top spots. The outcome? Critical safety protocols are skimmed over in the process. Weeks later, an avoidable incident occurs because the essential lessons didn’t stick.
When gamification shifts the focus to social kudos or quick rewards, it risks becoming a distraction rather than a tool for meaningful learning. Worse, it can unintentionally signal that the subject matter is dull, requiring flashy mechanics to hold attention rather than its own inherent value.
So, here’s the question: is your organisation fostering deep, meaningful learning, or are employees simply playing to win?
3. The Competitive Culture Conundrum
Leaderboards, a gamification favourite, can generate excitement but they also risk creating an unhealthy culture of competition. While some individuals thrive on the challenge, others may feel alienated, demotivated, or even humiliated when they consistently find themselves at the bottom.
I’ll never forget my school math teacher, who effectively made a performance leaderboard out of our test results, tossing graded papers onto our desks with commentary for all to hear. I didn’t feel inspired to improve; instead, I developed a lifelong anxiety about numbers.
The same danger exists in team-oriented workplaces; high performers might bask in recognition whilst lower-ranking colleagues feel ostracised, leading to resentment and siloed working. Collaboration suffers and individual success becomes more important than team success.
If leaderboards highlight disparities without offering constructive feedback or support, are they fostering a culture of growth or eroding it? In environments that rely on teamwork and shared success, pitting colleagues against one another may do more harm than good.
4. Leveraging White Hat Strategies
Not all gamification is problematic. In fact, when it’s grounded in white hat strategies, it can support a culture of meaningful learning. These strategies tap into motivators like purpose, autonomy, and mastery, but let’s not overlook two of the biggest drivers at work: progression and recognition.
We’re hardwired to want to grow and to be seen while we do it. That’s why platforms like Learn Amp emphasises talent development over gamification. Rather than defaulting to points and badges, we focus on encouraging praise and shout outs, creating space for meaningful feedback conversations, and aligning learning with career progression.
When learning is clearly linked to where someone wants to go in their career and when their achievements are celebrated along the way, that’s when engagement deepens.
We suggest:
- Private Progress Dashboards: Replace public leaderboards with private tracking tools to encourage individual growth without fostering rivalry.
- Meaningful Challenges: Design challenges that align with real-world tasks, making learning relevant and impactful.
- Storytelling Elements: Use narratives to make training more engaging without relying on competitive gimmicks.
- Simulation and role-playing: Send learners on a quest, allowing them to explore, practise and experiment in a safe environment.
Could shifting from extrinsic rewards to intrinsic motivators transform your organisation’s approach to learning?
5. The Overjustification Effect: When Rewards Backfire
While gamification can provide an initial boost in motivation, it's important to be cautious of the overjustification effect - a phenomenon where external rewards can diminish intrinsic motivation over time.
A study highlighted in Potential Negative Impact of Gamification Education: A Review of Gamification Research found that prolonged exposure to gamified elements without variation can lead to decreased motivation and engagement. In other words, what starts as motivating can become stale or even off-putting if rewards are overused or poorly aligned with meaningful goals.
This suggests that while gamification can be effective in the short term, over-reliance on external rewards without considering the individual's intrinsic motivators may lead to a decline in engagement. It's a reminder that the design of learning experiences should prioritise sustainable motivation strategies that align with learners' internal goals and values.
Questions we should be asking
As L&D professionals, it’s crucial to ask:
- Are our gamification strategies fostering long-term engagement or short-term compliance?
- How do we balance healthy competition with inclusivity and collaboration?
- Are we using gamification as a crutch to mask poorly designed learning experiences?
Conclusion: A Balanced Approach to Gamification
Gamification is neither inherently good nor bad. Its effectiveness lies in how it’s implemented. By prioritising intrinsic motivation and using white hat strategies, organisations can create learning experiences that are not only engaging but also meaningful and sustainable.
How can your organisation harness the potential of gamification without falling into its traps? The answer lies not in abandoning gamification but in using it wisely, to empower, not exploit; to unite, not divide.
Ready to move beyond surface-level engagement and foster genuine, skills-driven growth?
Discover how to align learning with performance and progression in our on-demand webinar: Building a Skills-Powered Employee Journey: the Golden Thread aligning Performance and Progression.
