Why Gen Z Is Changing the Way Leaders Think About Motivation at Work

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Performance reviews are no longer motivating Gen Z employees the way organisations expect. Annual appraisals, rigid hierarchies, and presence-based validation feel disconnected from how Gen Z experiences progress. Gen Z has grown up in digital ecosystems where effort generates immediate feedback, progress is visible, and improvement is continuous.

We spoke to Deepu S Nath, Managing Director, FAYA India, who shared Early lessons and ongoing research in workplace gamification.

Early Experiments With Workplace Gamification

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Gamification in the workplace did not begin as a trend. "In the late 2000s, while working with teams in India, I began experimenting with progress-based systems and feedback loops in the workplace, years before gamification became a formal topic in management research and quickly saw how visibly tracking progress reshapes motivation. The objective was practical: sustain motivation in cognitive roles without increasing supervision," said Nath.

What Gamification Really Means

Gamification encompasses much more than using simple rewards like points or badges. True gamification is about using game mechanics/motivators within a deliberate framework to meet some or all of the three core human needs: autonomy, competence, and relatedness. "In a work environment, this may include a team receiving accolades for finishing a project on time, collaborating with another function, or assisting other employees with their performance problems. Leader boards highlight team wins, while personal dashboards track individual progress without constant comparison," added Nath.

"Rewards provided to employees through gamification do not necessarily include just monetary rewards; other items, such as working hours that provide flexibility, opportunities for learning, and personal growth, are typically found to be more motivating," shared Nath. In many cases, employees will perform at a higher level when they know that their performance is being measured, as opposed to when they are being supervised or monitored.

The AI Era and the Need for Clarity

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As AI automates routine work, the differentiator for human performance will be systems that provide clarity, feedback, and a sense of progress rather than control. Gamification allows for immediate feedback to the individual or team (such as a scoreboard in a sports game) to enable them to adjust their input as needed. It can bring a more human touch to work by encouraging peer recognition and community-driven feedback, instead of depending only on top-down evaluations.

"Gamification can improve engagement, but if poorly designed, it can backfire. Overemphasis on points and rewards may reduce intrinsic motivation and encourage unhealthy competition. It becomes truly effective only when Self-Determination Theory is applied, supporting autonomy, competence, and relatedness so that motivation remains intrinsic and aligned with organisational goals," explained Nath.

Understanding Gen Z's Motivation

Gen Z is often viewed as having no loyalty or focus, but this explanation does not emphasise the correct premise of their lack of engagement. Having grown up in fast-moving digital ecosystems, they seek purpose, progress, and visible impact at work. Systems that reward long hours or physical presence over meaningful outcomes feel outdated to them.

Bottomline

Nath concluded, "Decades of research in Self-Determination Theory demonstrate that intrinsic motivation is more sustainable than externally imposed incentives. People perform at a higher level when motivated by autonomy, mastery, and purpose rather than external rewards alone. Ultimately, gamification is not about playing games at work. It is about designing work in a way that feels rewarding, human, and motivating. For Gen Z, gamification is not just an engagement strategy; it is a signal that work has been designed to align with how motivation actually works."