Competition between employees is an inescapable part of most people’s work lives. Whether overtly or otherwise, most companies create a dynamic in which employees compete against each other for recognition, bonuses, and promotions.
Using competition in the workplace can be healthy and productive. Competition increases levels of chemicals like testosterone and is motivational in many situations. It also can cause stress and alienation, so it’s important to know how to make competition work for your organization. To do so, a great manager understands how competition affects all employees and how to build competition in a positive way.
Competition comes in two flavors. Direct competition is a one-to-one experience that produces only one winner. Cooperative competition occurs when a team works together to achieve a goal for the good of the group.
Advantages include:
Incentivize the Team
One would think that people are motivated by money, and that a good paycheck is incentive enough to do a good job. Although salary is a strong component in finding and keeping good talent, human resources managers have learned that people are often motivated to move into the next gear with other incentives. An example of an incentive is a sales contest to have the greatest number of sales in a month or quarter for a specific product.
Quality Work
Competitive environments fuel creativity and productivity, generating a higher quality of work. When someone wants to win, he is more likely to look at a variety of solutions to any problem. This usually yields better systems and processes and creates an efficient work ethic, in which the employee doesn’t want to waste his time on things that don’t help his end goal: winning. Business leaders need to give employees enough freedom to use instincts and to problem solve to most effectively take advantage of this competitive workplace benefit.
Disadvantages include:
Anxiety
Work can be stressful. For an employee who doesn’t stand out from the pack, a competitive workplace can increase the anxiety felt in the workplace. To avoid increasing anxiety, business leaders should remind everyone in the department that teamwork is the primary goal for the entire department.
Poor Team Morale
With teams that are already struggling with good teamwork and communication, a competitive workplace could further diminish team morale. Managers can’t use competition alone to fuel more productivity, because teams that have poor bonds will resort to backstabbing and undermining behaviours to prevent others from getting the advantage. When a team loses morale, their team productivity also goes down. Competitive environments must be fostered with communications and team-building workshops.
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