The desire to get ahead can carry employees to unparalleled heights of innovation, productivity, and success. Yet, it can also destroy the reputations of individuals, teams, and organizations. The experts at Hogan Assessments - the global leader in workplace personality assessment and leadership consulting – have identified the advantages and pitfalls of competition in the workplace and advise on how to channel this energy positively.
The positives of workplace competition
Competition can actually be a good thing. An organization thrives when employees use their competitive drive to help the company succeed. For example, competition between two teams at the same company could produce innovation through higher-quality products and services as the teams pursue excellence. Plus, outside competition is crucial for a business, as everyone—from employees to leaders—works to grab market share and build a strong brand. In this setting, a leader's desire for power can really shape how well the whole team does.
On a more personal level, employees can also benefit from turning their competitive edge internally. “Competing against yourself can be an extremely effective motivational tool, challenging workers to improve and excel in their roles,” says Hogan Assessments Chief Science Officer Ryne Sherman, PhD. “Positively channeling this energy can be achieved by setting personal goals for employees and providing incentives for them to hit these targets. As a manager, it is important to highlight and reward scenarios that enable positive competition within the workplace.”
The pitfalls of a competitive workplace
However, competition in the workplace can lead to several issues. It may create unrealistic expectations for employees, causing them to make mistakes or take shortcuts. Additionally, an excessive focus on external competition can push teams and management to take greater risks to meet goals, potentially endangering the entire company. Furthermore, if employees' ambition and competitive spirit are not managed properly, it can result in serious conflicts among team members and create a toxic work environment.
“It is important for managers to ensure they handle any attitudes or competitive spirit they cultivate within their team,” says Sherman. “Poor management of a team’s competitive culture could compromise productivity in the long run instead of encouraging growth and innovation.”
Managers need to be mindful of potential interpersonal problems among team members in a high-stakes, competitive environment, as these issues can negatively impact both individual and team performance.
How do you find the right balance?
Striking the right balance of competition is vital to managing the workplace. The first step is understanding why we compete. “Why we compete at work is often heavily related to our values, and one way to think about the relationship between our ambitions and values is what we are competing for,” says Sherman. “Some may be competing to earn a larger salary or bonus, while others use competition to fuel their ambition. Friction between teams can often stem from clashing personal agendas. Personality assessments can help individuals to determine why they feel the need to compete and help managers to find healthy ways to channel competition.”
Another critical step is to create a trusting and safe environment where all parties respect the rules of competition before engaging in any workplace competition. When managers invest time in building this trust, it helps avoid adverse outcomes and promotes a respectful, collaborative atmosphere. Ensuring fair competition is also vital for success.
“Individuals perform best when the competition is close,” says Sherman. “In other words, when they’re competing against people like them. When appropriate groups compete against each other, employees will become more motivated as they will feel they have a more realistic chance of winning. For any competition to be productive, managers must be sure to pair up teams who are on a similar level.”
About Hogan Assessments: The international leader in personality insights, Hogan Assessments produces valid, reliable personality assessments grounded in decades’ worth of research. More than 75% of the Fortune 500 use Hogan’s talent acquisition and development solutions to hire the right people without bias, boost productivity, reduce turnover, and promote diversity and inclusion. For more information, visit hoganassessments.com.
