Why Gartner Believes 'Gamification' Could Increase Retention

As labour shortages have contributed to global supply chain disruption, businesses are now looking at prioritising worker retention.

Warehouses and distribution centres have fallen victim to labour shortages, resulting in supply chain delays and higher expenses.

While many are relying on upskilling and clear growth paths, Gartner predicts there will be a widespread adoption of gamification tools.

Addressing labour shortage risks

Recent years have seen significant supply chain disruption as labour shortages became one of the most concerning emerging trends in the sector.

With increasing skills gaps, ageing workforces and limited paths of progression, warehouses and distribution centres are suffering.

Though many leaders are focusing on AI implementation or the introduction of robotics, Gartner points towards a different method.

Gartner is a business and technology insights company acting as a partner to C-level executives as they work to address their operational priorities.

Its insights are used by leaders around the world to make more informed decisions about strategy and organisational growth.

Rather than working to fill the gaps, Gartner suggests business leaders should instead prioritise preventing the gaps from forming.

Instead of suffering the consequences and working to mitigate the fallout, leaders can prevent the risk from taking roots by investing in the current workforce.

Gartner predicts that by 2028, 40% of large warehouse operations and distribution centres will have invested in gamification tools.

By prioritising employee engagement, leaders will motivate their workforce and limit the need to repeatedly address shortages.

“Employee retention is becoming increasingly crucial in the current climate, where labour shortages are one of the toughest challenges companies face,” says Federica Stufano, Senior Principal Analyst in Gartner’s Supply Chain practice.

“Employees, especially those from younger generations, want meaningful work experiences and opportunities to succeed. Gamification helps organisations deliver those experiences by combining engagement, skill-building and recognition in a practical way.”

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Enhancing employee engagement

Gamification takes appealing game design principles, such as badges, leader boards and points, and applies them to the workload.

Through creating these incentives and turning it into a game of operational processes, it improves performances and enhances employee engagement.

By presenting work as a more exciting event, organisations are aiming to address rising employee turnover which is a costly expenditure for the company.

According to research from Gartner, gamified simulations and interactive quizzes increase memory capabilities.

This could mean that new or seasonal staff take less time to competently understand their role and the business.

Alongside the more playful learning experiences, progress-tracking dashboards provide employees with greater visibility into their development.

This builds their confidence when they can see the skills they are developing but also encourages continuous improvements when they can see where they are lagging behind.

Gamified modules are being integrated into warehouse management systems, mobile applications and robotics platforms to allow for real-time challenges tailored to each individual and team performance.

Difficulty levels and rewards can be adjusted with AI-driven insights offering a more personalised engagement opportunity.

Implementing cultural change

Though Gartner sees gamification taking off, it will need to be adapted to fit each company as it is not a "one-size fits all" model.

“The most important consideration in introducing gamification is cultural and not technological,” she says.

“Gamification works when companies stop viewing labour as a fungible commodity and instead recognise employees as valuable assets.

“Legal, compliance and change management efforts must also be aligned to ensure a successful gamification strategy that motivates, rather than annoys or harms, workers.”

Gartner puts forward recommendations for supply chain and logistics leaders:

• Build transparency in labour management to ensure employees can see and understand how their progress will be tracked before the gamified elements begin
• Tackle quick wins, like reducing idle time, so improvements can be turned into daily routines before incentives are introduced
• Select pilot locations where frontline staff and leaders show that these changes are working, helping early adopters feel excited
• Allocate extra resources to support local change management, meaning site teams can embrace the interactive experience
• Begin with a gamification feature which already integrates smoothly across the workforce management platform, offering a seamless experience