Beyond the Prize: How to Motivate Your Team Members with Gamification

Gamification works best when it taps into what really matters to people. Many organisations and businesses have tried to deploy a gamification program that relies on leaderboards, cash rewards, and bonuses to motivate their employees, but these incentives alone failed to sustain lasting engagement.

Why do the employees eventually will lose interest once the gamification campaign ends? Because rewards alone don’t build long-term motivation. They key to sustainable and long-lasting engagement is balancing both intrinsic and extrinsic motivation.

Understanding Intrinsic & Extrinsic Motivation

Extrinsic Motivation

Extrinsic motivation usually comes from external rewards like points, badges, prizes, or monetary rewards. This also includes praise or avoidance of punishment. It’s the easiest way to tap into someone’s motivation because our brains are wired to respond to rewards.

When we receive a reward – especially an unexpected one – our brain releases dopamine, the “feel good” neurotransmitter. This process, as explained in this study on dopamine and reward systems, reinforces behaviours that led to the reward, making us more likely to repeat them. Over time, even the anticipation of a reward can trigger the same response, which is why leaderboards, bonuses, and game incentives work so well.

However, the study also highlights an interesting fact – when rewards become too predictable, the dopamine response weakens. This explains why static reward systems lose their appeal over time, while variable rewards (like surprise bonuses or randomised prizes) keep engagement levels high. In gamification, this is why mechanisms like mystery boxes, levelling up, and dynamic achievement systems are so effective.

? Pros: Fast results, clear incentives, easy to implement.

? Cons: Engagement drops once rewards stop, can lead to a "reward addiction.

Intrinsic Motivation

Intrinsic motivation on the other hand, comes from internal drivers like curiosity, mastery, purpose and autonomy that fuels long-term engagement and personal fulfilment. Intrinsic motivation comes from within – it’s the desire to something because it’s inherently enjoyable, meaningful, or aligns with personal growth.

Unlike external rewards like badges or bonuses, intrinsic motivation is driven by factors like curiosity, mastery, autonomy, purpose. Research by Deci & Ryan (1985) on Self-Determination Theory shows that people are more engaged when they feel competent, in control of their actions, and connected to a greater purpose. This is why people spend hours mastering an instrument, solving complex puzzles, or volunteering – not because they get paid, but because the activity itself is rewarding to them.

Interestingly, studies also show extrinsic rewards can sometimes undermine intrinsic motivation, a phenomenon known as the Overjustification Effect. For example, a if a child enjoys drawing but is suddenly rewarded for every piece of art, their nature passion may shift to expecting a reward, rather than the joy of drawing itself. Once the rewards stop, so does the motivation.

? Pros: Long-term engagement, builds personal investment in work.

? Cons: Harder to measure, requires thoughtful design.

Why Both Matter

Extrinsic motivators help kickstart engagement, but intrinsic motivation sustains it. The best gamification programs use a mix of both to create an experience that is both rewarding and meaningful.

Balancing Extrinsic & Intrinsic Motivation in Malaysian Workplaces

Corporate culture in Malaysia tends to be hierarchical and reward-driven, with a strong emphasis on tangible incentives like bonuses, promotions, and performance-based rewards. Many organisations still rely on extrinsic motivators as the primary means of engaging employees, which often leads to short-term participation but lacks long-term sustainability.

However, studies have shown that fostering a culture where employees feel a sense of purpose, autonomy, and mastery leads to higher retention, productivity, and engagement. Organisations that integrate gamification successfully don’t just focus on rewards – they cultivate an environment where employees are intrinsically driven to succeed.

Actionable Steps: How Businesses Can Improve Gamification Design

1.???????? Use extrinsic rewards as a hook, but not as the only driver.

2.???????? Integrate storytelling, mastery, and purpose into gamified programs.

3.???????? Design challenges that encourage learning and improvement rather than just competition.

4.???????? Make rewards unexpected and meaningful instead of purely transactional.

5.???????? Encourage social engagement and recognition as part of the gamification process.

Gamification isn’t just about badges and points – it’s about designing experiences that make people want to engage. Companies that balance intrinsic and extrinsic motivation will create lasting engagement and higher performance.

Want to explore gamification strategies that work? Let’s talk.