Warehouse and distribution center (DC) leaders are boosting their employee engagement strategies as recruiting and retention remains a leading industry challenge. Gartner research released today shows that gamification tools are at the top of that list.
Gartner predicts that 40% of large warehouse operations will adopt gamification tools by 2028, hoping to motivate workers with skill-building activities, rewards, and recognition. Gamification in logistics applies game-design principles—such as points, badges, leaderboards, and rewards—to operational processes to improve performance and enhance employee engagement.
“Employee retention is becoming increasingly crucial in the current climate, where labor shortages are one of the toughest challenges companies face,” Federica Stufano, senior principal analyst in Gartner’s Supply Chain practice, said in a statement announcing the findings. “Employees—especially those from younger generations—want meaningful work experiences and opportunities to succeed. Gamification helps organizations deliver those experiences by combining engagement, skill-building, and recognition in a practical way.”
The research shows that gamified simulations and interactive quizzes make learning more memorable, reducing time-to-competency for new or seasonal staff. Progress-tracking dashboards provide employees with visibility into their development, building confidence and encouraging continuous improvement.
Organizations are also integrating gamified modules into warehouse management systems, robotics platforms, and mobile applications, the research found. These integrations enable real-time challenges tailored to individual and team performance. AI-driven insights can dynamically adjust difficulty levels and rewards, maintaining engagement without causing frustration.
Despite the benefits, challenges remain—primarily when it comes to company culture. Stufano said introducing gamification to the workforce requires “careful consideration and will present additional feasibility challenges in highly regulated or unionized environments.”
“The most important consideration in introducing gamification is cultural, and not technological,” she said. “Gamification works when companies stop viewing labor as a fungible commodity and instead recognize employees as valuable assets. Legal, compliance, and change management efforts must also be aligned to ensure a successful gamification strategy that motivates, rather than annoys or harms, workers.”
Gartner recommends five key actions for maximizing the impact of gamification initiatives in the warehouse or DC
- Build a transparent labor management framework, so employees can clearly see how their efforts are tracked and rewarded before introducing gamified elements.
- Tackle quick wins, such as reducing idle or wasted time, so workers experience immediate improvements in their daily routines before incentives are layered on.
- Select pilot locations where both leaders and frontline staff demonstrate genuine enthusiasm for gamification, ensuring early adopters feel excited and supported.
- Allocate extra resources to support local change management, helping site teams navigate new processes and fully embrace the interactive, game-based experience.
- Start with a gamification feature that’s already part of your workforce management platform and integrates smoothly with payroll, providing employees with a seamless, unified user experience.
