Top 3 Things Credit Unions Need To Know About Gamification

By: Patrick McElhenie, Director, Product Management, CUNA Mutual Group.

Engagement is the name of the game for gamification. Nearly 70% of US employees report that they are not engaged or are actively disengaged at work.i With disengagement costing US employers $550 billion per year, having engaged employees is key for your credit union’s success.ii For the in-depth conversation about how much disengaged employees cost your credit union, listen to the podcast in full here

 What is gamification?

Gamification is the use of game-thinking and game mechanics in non-game situations to engage audiences and solve problems. It’s not creating a game, but rather, looking at the elements of a game structure and applying them to the real world.

Gamification is all around us. A popular example of gamification is Fitbit fitness trackers. Fitbit users can check in on their goals, their activities, and their progress at any time, receiving instant feedback about their performance. Another example is loyalty programs in which customers earn points for their interactions with a company. Customers acquire points through purchases which they can then exchange for a reward after they meet a certain threshold.

How does gamification create engagement?

Engagement is a key component of the game structure. Games are extremely engaging and can hold a player’s attention for a long time. Engagement is created through clear objectives, scores, and rules. The player is never confused about what they have to do or how well they are doing.

Games avoid predictability and monotony while maintaining the element of surprise. There are also often social elements and competition. These elements are translated to the workplace in gamification. The goal is to get employees ultra-engaged and having fun by working to solve problems and achieve objectives.

What are the benefits of using gamification?

Gamification utilizes both intrinsic and extrinsic motivation methods to create engagement in the workplace. Extrinsic motivation speaks to a hierarchy of motivators, such as stuff, power, access, and status. Status is the most effective reward because it is cheapest to fulfill and “sticky”. An example of status would be publicly recognizing an employee as a top performer.

Intrinsic motivation is all about driving an internal desire to be better or to be recognized for being better. It’s all about autonomy, the feeling of being able to control your own outcomes. In the workplace, there can be barriers that make employees feel they can’t control their own success. This is where gamification can help. Gamification provides near-real-time feedback, allowing employees to always know how well they are performing and what they need to do to achieve their objectives.

For more information about gamification, including how credit unions are using gamification and common pitfalls in implementing gamification, listen to How Much Are Disengaged Employees Costing Your Credit Union? the first installment in a two-part series about gamification.

CMG logoCUNA Mutual Group is the NAFCU Services Preferred Partner for TruStage® Auto & Home and Life Insurance Products and Mortgage Payment Protection. Learn more about our Preferred Partner at www.nafcu.org/cunamutualgroup.

 

i Gallup, Employee Engagement Is Stagnant in 2015, 2016
ii Glassdoor.com, The Cost of a Disengaged Employee, 2015