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Report Card: Is Gamification All Hype or Does It Really Work?

It’s a passionate debate. Skeptics brush off gamification asnothing more than hype, while believers assert it drives engagement.
The reality is there hasn’t been any hard data in the publicdomain to support either side of the argument. So, the two sides have continuedto square off with fiery claims that are based more on opinion than fact.
We think it’s time to get the truth out there and change theconversation. In June, 2014, we put together our report card about what works with gamification in learning. But this year, we’re taking our insightsa step further and revealing data that proves gamification works.
Thousands of employees from the world’s leadingorganizations, including Walmart, Toyota, Johnson & Johnson,Bloomingdale’s, John Hancock, and more, interact daily with gamificationelements delivered through the microlearning and performance support componentsof our Axonify Employee Knowledge Platform. This has allowed Axonify to buildwhat we believe is the largest body of gamification-related data.
Based on a three-year analysis of more than 9.5 millionsessions on the platform, we’d like to share our findings. The data shows gamificationhas a significant impact on employee engagement and that this higher engagementdrives substantial knowledge lifts, which have huge business impact.
Gamification defined
But before we get into the numbers, let’s get on the samepage about what gamification means. While many interpretations of gamificationexist, our definition aligns with Karl Kapp’s, a respected expert on theconvergence of learning and technology. Kapp defines gamification as, “acareful and considered application of game thinking to solving problems and encouraginglearning, using all the elements of games that are appropriate.”
Just to make this definition crystal clear, gamification isdifferent from game-based learning. Game-based learning uses game play to helplearners achieve a specific learning objective. It has a distinct startingpoint, followed by structured play and a defined ending. An example would be agame that simulates an operating room environment, which teaches surgeons howto perform a specific type of surgery.
Gamification, on the other hand, applies game-basedmechanics and game thinking to help engage individuals in learning, motivate them to act,and foster ongoing learning. While it can include game play, it relies on othergame mechanics as well— such as rewards, points, leaderboards, competition, andmore—to make learning fun. An example would be a learning solution thatemployees would be encouraged to use daily. It would award points for correctanswers to questions on particular topics, encourage employees to compete forprizes, and allow employees to play a game, while learning about subject matterthat pertains to their role.
Axonify incorporates more than 15 game mechanics into itsplatform, including game play, points and rewards, leaderboards, badges,coaches, and more, allowing us to observe them in isolation as well as incombination with each other. Here’s how we know gamification drives engagement,which, in turn, leads to knowledge growth and business impact.
Six game mechanics that drive the most engagement
We know from our research that organizations need to employa combination of game mechanics to drive employee engagement in learning. But, basedon all the game mechanics we include in the Axonify Employee KnowledgePlatform, we’ve identified six that impact engagement the most:
- Rewards Page—Displays prizes and allowsemployees to bid on them with points earned from their learning sessions
- Leaderboard—Allowsemployees to see how their performance measures up against their team
- Report Card—Displays individual learning progress and milestones employees haveachieved
- AchievementBadges—Showcases the learning accomplishments of individual employees
- News Feed—Featuresnews about employees and their peers
- GameScores—Reveals who has achieved top game scores for various games

Figure 1: Game mechanics rvalues: game mechanics drive higher participation in learning
Figure 1 showcases the statistical significance or “r value”of these mechanics. Without getting too deep into stats, the correlation coefficientr measures the strength of the correlation between two variables (in this case,it’s the correlation between the game mechanic and participation frequency onthe Axonify Employee Knowledge Platform). Correlation is positive when thevalues increase together.
1 1 is a perfect positive correlation
2 0 is no correlation (the valuesdon’t seem linked at all)
3 -1 is a perfect negativecorrelation
Typically, anything above .3 is consideredto be a significant correlation. In our case, the data shows that all six ofthese game mechanics have a high correlation-to-participation. That meansemployees who interact with these game mechanics more often have higherparticipation frequency on the Axonify platform. Similarly, those whoparticipate more frequently on the platform interact with these game mechanicsthe most often.
This is significant because we know thatmany organizations have great difficulty encouraging employees to participatein learning. Organizations that use Axonify make participation voluntary. So,it’s pretty clear that these game mechanics play a huge role in driving engagement.
Extrinsic rewards have a long-term impact on engagement
Some strong arguments have been published that claimextrinsic rewards have a temporary impact on engagement. But our researchdemonstrates the contrary. Out of all the game mechanics included on theAxonify platform, the rewards page (as illustrated above) is the most visited. Infact, our data shows that those who participate in regular learning sessions gettremendous value and enjoyment out of the rewards. What matters most is thatemployees value the rewards being offered. Axonify customers offer all kinds ofdifferent rewards to their employees, including gift cards, t-shirts, freelunches, and more.
Figure 2 shows the level of engagement with the rewards pageversus learning session frequency. The sessions were tracked over a 12-monthperiod (approximately 260 working days). In this case, the data indicates that employeeswho visited the rewards page 75% to 100% of the time, completed 110 learningsessions in 12 months. The employees who visited the rewards page 0% to 25% ofthe time completed only 33 learning sessions in 12 months. This data confirms the link betweenrewards and the frequency of employee participation. By having a meaningful rewardsprogram, employees have increased motivation to participate in learningsessions on an ongoing basis.

Figure 2: Employees who visit the rewards page most often completethe most sessions
After tracking this data over a three-year period, we’veidentified that extrinsic rewards still appear as the highest driver of employeeparticipation. And because this correlation still exists, it’s clear it standsthe test of time.
That said, just because rewards are the highest-driving gamemechanic when it comes to participation, this doesn’t mean the other gamemechanics should be shut off. Rewards work in concert with the other drivers.That’s why we recommend using a combination of game mechanics—they allcontribute to a certain amount of engagement and fun. The point is that iforganizations want high participation, they shouldn’t leave rewards off thetable.
Gamification increases engagement, knowledge growth, and businessimpact
We know that the more people are engagedin gamified learning, the higher their knowledge levels will be.
Figure 3 highlights significant employeeknowledge growth from three different types of organizations. The blue barsdisplay employee knowledge growth according to a participation frequency of fiveor less sessions per month. The green bars showcase employee knowledge growthfrom a participation frequency of 20 or more sessions per month. The more frequentlyemployees participate in gamified learning, the higher the knowledge lift.
Figure 3: Higher participation = higher knowledge growth
What’s even more significant is the business impact. The specialtyretailer, for example, has tied employee knowledge lift (from gamifiedlearning) directly to safety and shrink results. Stores that use Axonify are33% less likely to have an accident and these stores also have a 24% lowershrink rate—translating into millions of dollars of annual savings.
Gamification drives engagement across all industries and genders
A common objection to gamification is that it won’t appealto a diverse workforce or motivate those in professional roles. We beg todiffer. When we’ve sliced and diced the data to examine this argument, theresult has been the same. Gamification works across age, gender, industry, androle.
Figure 4 compares males and females in different industries,demonstrating that they behave in virtually the same way. What’s even moreinteresting though, is that the professional sales group visits the EmployeeKnowledge Platform leaderboard even more often than retail associates. Thisproves their competitive nature motivates them to participate more frequentlyin learning, refuting the argument that professionals aren’t interested in gamification.

Figure 4: Men and women behave the same in a gamified environment






