Why Workplace Competitions Work and How to Make Them Effective
Discover why workplace competitions boost motivation, creativity, and engagement. Learn how to run effective contests that inspire teams and improve performance.
0 min read.
Workplace competitions are friendly challenges designed to motivate employees, spark creativity, and strengthen teamwork. Whether it’s a sales contest, a recognition challenge, or a department-wide game, competition in the workplace helps people feel more connected, driven, and engaged. When done right, these contests can transform performance culture into something more collaborative, inspired, and fun.
We could go on and on about the many benefits of bringing competition into the workplace (and we would!), but let’s just get to the good stuff. Here are the top reasons why sales and workplace competitions are so effective.
Competitions Are for Everyone
Running standard sales competitions is fine, but it can get boring running the same competition over and over. They can only be so effective when left in this cookie-cutter format. Your organization and your employees are unique, so why shouldn’t your contests reflect that? Customizing competitions to your specific needs, or the needs of your team, is much more likely to drive the right behavior.
For example, introducing an element of chance by making who wins the competition a lottery. Or encouraging head-to-head battles between reps. You could also switch it up by creating custom teams or leveling out the playing field by taking the highest average of whatever metric you’re competing on as the winner. The possibilities are endless, and by switching up the types of competitions you’re running, you’ll keep your teams engaged and excited to compete.
Competitions also make inclusion easier. Teams can join in different ways, individually, in groups, or by role. Everyone feels like part of the excitement. That sense of shared energy helps build a stronger internal culture and a sense of belonging across departments.
Workplace Competitions Inspire Creativity and Innovation
When people have a tangible goal to work towards, it causes them to perform better and do everything they can to achieve it. It inspires creativity and innovation because it starts exploring different ways to succeed. They try new approaches, share knowledge, and support each other, all while staying focused on the goal.
In addition, team competitions are an excellent way to encourage collaboration, which leads to openness and knowledge sharing. Say you are a software company running a team competition amongst your developers. Perhaps Jim is particularly skilled at Visual Studio Code and shares some useful tips with his team that they were previously unaware of. Now Stanley and Dwight have added a new skill to their toolbox that will ultimately lead to better performance in the future, and they have an advantage in the competition as well.
Studies show that friendly workplace contests can boost engagement and output significantly. Gallup research has found that highly engaged teams show 21% greater productivity than their less engaged peers, and introducing structured competition is one of the simplest ways to spark that engagement.
Competitions Challenge People
To understand how competitions can successfully challenge people, it helps to learn what extrinsic and intrinsic motivation mean.
- Extrinsic motivation occurs when we’re motivated by rewards or recognition.
- Intrinsic motivation is the personal satisfaction that comes from achieving something meaningful.
The great thing about workplace competitions is that they tap into both. People are driven by the external rewards — the prizes, bonuses, or shout-outs — but they’re also motivated internally by progress, pride, and purpose.
For instance, Michael might perform better in a week when his office is running a competition because he wants to win the top prize of an extra vacation day. Pam might perform better during that week because she genuinely loves succeeding at her job and enjoys the personal satisfaction of seeing her name at the top of the leaderboard.
Healthy competition gives people that extra spark to push boundaries, not because they have to, but because they want to.
Competitions Are Fun & Engaging
Competitions are so effective in the workplace because they are fun. Especially when the daily grind of reports and repetitive tasks starts to wear down your employees, contests can reintroduce energy, laughter, and excitement.
Fun competitions also strengthen social bonds. When people celebrate wins together or cheer on teammates, they feel connected to the company’s goals and culture. It turns work into something to look forward to rather than just another list of tasks.
Ultimately, competitions are an effective way for leaders to rally their teams and boost productivity. Sales competitions in particular help employees push themselves to meet challenging goals while building momentum that carries into long-term performance.
Types of Workplace Competitions
Every team and department has a different rhythm. Here are some common types of workplace contests that can work across industries:
| Type | Description |
|---|---|
| Sales Competitions | Reward performance, consistency, and revenue milestones. |
| Recognition Challenges | Encourage peer-to-peer appreciation and celebrate progress. |
| Wellness Competitions | Track steps, workouts, or mindfulness activities to promote well-being. |
| Learning & Development Contests | Reward upskilling, certifications, or creative problem-solving. |
| Innovation Challenges | Invite ideas or product improvements that impact the business. |
Rotating between these types keeps motivation fresh and caters to different personalities and skill sets within the organization.
How to Create Fair and Engaging Competitions
The key to making competition in the workplace healthy and productive lies in how it’s structured.
A few practical steps help ensure everyone feels motivated, not pressured.
- Set clear, measurable goals that align with company objectives
- Keep scoring and rules transparent
- Combine recognition and rewards, not just one
- Celebrate effort, not only outcomes
- Rotate contest formats to keep things exciting
Balanced competitions encourage consistent participation and prevent burnout. They’re not about outperforming others but about outperforming your last best result.
Measuring The Success Of Sales Competition
Great workplace competitions don’t end with a prize. They lead to measurable impact. To evaluate what’s working, track a mix of performance and engagement metrics:
- Participation rate across departments
- Activity levels during and after the contest
- Productivity improvements
- Qualitative feedback and team morale
When competitions are data-backed, it’s easier to fine-tune them for future success and show the value they bring to company culture and performance.
Bringing It All Together with Sales Gamification
Competitions thrive on visibility, recognition, and momentum, and that’s exactly where SalesScreen brings it all together. By turning performance data into live leaderboards, celebrations, and shared achievements, teams feel the rush of progress in real time. It’s not just about winning; it’s about staying engaged, connected, and motivated every single day.
When competition becomes part of how people work, not just an occasional event. It strengthens culture, energy, and belonging, and that’s how teams stay driven, connected, and proud of what they achieve together.
