THE DUAL IMPACT OF WORKPLACE GAMIFICATION: AN INTEGRATED ANALYSIS OF EMPLOYEE RETENTION AND CUSTOMER EXPERIENCE ROI

Abstract

This study examines how using game-like elements (gamification) in the workplace affects employee retention. The research looked at three main aspects of gamification: reward systems, challenge complexity, and system accessibility. The study found that all three aspects help reduce employee turnover, with reward systems having the strongest effect. Gamification not only encourages employees to stay in their jobs but also increases their engagement with work tasks. This increased engagement significantly contributes to lower turnover rates. The study also found that using gamification can be cost-effective for companies. By the third year of implementation, for every dollar spent on gamification, companies could expect to get back that dollar plus an additional 89 cents. However, the research emphasizes that while gamification is beneficial, traditional factors like job satisfaction are still crucial for employee retention. Therefore, companies should use gamification alongside their existing strategies for keeping employees satisfied, not as a replacement. The effectiveness of gamification varied based on factors like age, job type, and personal preferences, suggesting that companies should tailor their gamification approaches for different employee groups. Overall, this research indicates that gamification can be an effective tool for improving employee engagement and reducing turnover, offering a new approach for businesses to address the ongoing challenge of employee retention in today's rapidly changing work environment.