Top 6 Factors That Impact Gamification & Employee Engagement ROI

For everyone who's reading this article and is new to the concept of Gamification - gamification is the application of game-design elements and game principles to non-game contexts. In case of nGUVU, we apply our gamification and employee engagement technology for the contact center teams - submerging agents into a fun, game-like environment that helps keep them engaged and motivated while increasing team performance.

According to Gartner, a leading research firm, has long supported this concept with facts—going as far as stating that Global 1000 organizations are likely using gamification as the primary tool for growth and business transformation. And, yet, many companies struggle with measuring gamification technology ROI.

In this article, we are going to discover how gamification impacts six factors/variables that should be extremely important for any company. With a strong degree of confidence, we can say that gamification has a profound impact on turnover or employee attrition, agents absenteeism, engagement and productivity, new hire drop rate, knowledge and training programs success, and overall quality of work.

In our case, looking at all of the nGUVU customers, we've discovered that positive effect on one of the above six variables translates into 1-3% growth in company revenue.

Let's take a closer look at each of the variables mentioned:

EMPLOYEE TURNOVER / ATTRITION - all of the contact centers regardless of their location or size are strongly affected by this.  30 - 45% contact center employee turnover is a median value and is hard to change unless there are both programs and technologies in place. In case of gamification consider the following example - "CaLLogix reduces attrition by 80% and absenteeism by 50% by leveraging gamification (Source). 

Consider the following when thinking about the importance of employee attrition - "10% employee attrition leads to 1% customer churn (Source). Not to mention that every lost employee is a cost to a business - for example: "Applebee's restaurants -  At one point, the franchisee experienced 120 percent annual turnover, and it cost $400 to $10,000 to replace individual employees, depending on seniority (Source). Ask yourself a question if gamification can reduce my employee turnover by 10% within six months after implementation - what effect will it have on a company bottom line?

EMPLOYEE ABSENTEEISM - is a second big problem for the call centers. ICMI reports that 48% of contact centers have high employee absenteeism (Source). Gamification and employee engagement technology will not eliminate the problem but will certainly positively move the needle. According to engineersaz.com -  "Gamification can lower absenteeism by 27%"  (Source)

ENGAGEMENT AND WORKFORCE PRODUCTIVITY - According to Gallup, only 15% of employees worldwide feel engaged at work (Source). According to engineersaz.com - Organizations who deploy gamification can improve employee engagement by 48% and increase productivity by 18% (Source). Top three variables according to CIO.com that has the strongest effect on employee engagement are: "monetary rewards engage them the most (70%), followed by recognition (62%) and promotions (58%) - based on the study with 500 participants using gamification and employee engagement technology."

 NEW HIRE DROP RATE - the cost of on-boarding a new agent can vary anywhere between $5000 - $15000 depending on the company, complexity of work, experience required, etc. One thing is certain that newly hired agents are most vulnerable within their first three months of employment - "According to Mercer, turnover is highest among entry-level agents (27%)".

KNOWLEDGE EXCHANGE AND TRAINING PROGRAMS SUCCESS - as we just mentioned in the previous paragraph training, a new agent is a costly affair, and both employer and employee desire a successful outcome. According to Deloitte - training programs that are gamified took 50% less time to complete and massively improved long-term engagement (Source). Gamification is effective not only at improving that success of training programs or encouraging better knowledge exchange among the agents - but it is also great at identifying knowledge gaps! Quizzes and tests are a standard capability - and allow managers to seamlessly poll agents on any subject. This helps discover learning problems early enough in the cycle to minimize the chances of damage from telling wrong information or misleading a customer.

HAPPINESS AND QUALITY OF WORK - At nGUVU, we believe that Happy Agents = Happy Customers. CIO.com conducted a study around gamification talking to 500 employees that are using gamification technology on a daily basis. Here's what the employees shared about gamification -  90 percent say they are more productive because of gamification tools, and 95 percent enjoy using gamification solutions (Source ). The University of Warwick shows that happiness can cause a 12% boost in productivity, while unhappiness can decrease it by 10%. So, if your agents are more productive by 12% how big of an impact it would generate for the company revenue?

Gamification has a profound impact on turnover or employee attrition, agents absenteeism, engagement and productivity, new hire drop rate, knowledge and training programs success, and overall quality of work. Positive effect on above six variables translates into 1-3% growth (for each variable) in company revenue.

I would like to finish this article by pointing at a recent article posted on yukaichou.com where they've listed 90 plus companies - that show positive effects of gamification on their companies and workforce - http://yukaichou.com/gamification-examples/gamification-stats-figures/