Thom Dennis: Five myths about competition at work that need dispelling

There is a fine dividing line between unhealthy and healthy competition. We know businesses do well when individuals perform at their best, the culture is thriving and when productivity and creativity are at the forefront. If your sole aim is to make money and you encourage competition to such an extent that there has to be a loser or losers, then you will have diminishing returns. Sky-high, systemic competitive levels mean a loss of shared purpose … and what of the ‘losers’ who might otherwise bring important skills to play?

The truth is outside of the sports world, competition is not black and white. In sports, there has to be a winner and a loser, and it is a finite game.  Business is an infinite game because there are no defined time boundaries and two or more companies can do the same thing and all be successful.  Focusing on doing your individual and collective best and comparing against one’s own performance is key.  Apart from ego gratification, there is no substantive benefit in destroying the competition.

There is a lack of research around the value of competition within the workforce. However, ResumeLab took a deep dive into rivalry in the office and found 82% of employees compete with a co-worker and that 70% considered it healthy and constructive competition, whilst 30% considered it unhealthy and toxic. Interestingly in most cases, most workplace rivals (either positive or negative) were of the same gender. Most employees competed with people with the same job level, but more than one in three senior managers said their rival was actually someone in a middle-management position.  Intriguingly employees whose rivalry was positive were two times more likely to earn a promotion than someone with a negative rivalry. But there are still a lot of myths around competition in the workplace.

Five Myths About Competition At Work That Need Dispelling

Myth 1: Competition is healthy.

Not all competition is healthy. Gruelling competition engenders unethical behaviour and a culture of fear, in particular where jobs are routinely culled.  In some industries and businesses, the mindset is purely about winning and losing – a dog-eat-dog culture.  Employees are constantly judged and what emerges is an environment which is largely populated by very bright people who have drive, financial and ego excesses, but not abundance.  It’s a bruising hard world because in many industries the rewards and bonuses are so high if targets are met, yet even in success you are rarely enough.

I facilitated a global gathering of a telecoms company whose CFO made a great play in a plenary session comparing and contrasting how each of the different global offices had performed. In front of all the country heads and their associated staff, he belittled and denigrated the leader of one country, naming all the things this leader and his team had underperformed in, not only humiliating that (very senior) person but also warning there would be consequences. In some businesses, the protection of the business is such a hugely powerful dynamic it can almost come at any cost, with a complete absence of integrity or understanding of the consequences. What continues to take place at Boeing, for example is a classic example.

Myth 2: Employee competition should be part of everyday life at work.

Of course, there are different levels of competition, and there are unhealthy and healthy versions, but a push for growth when budgets may be struggling means businesses have to stay ahead of the competition by thinking outside the box, collaborating more with other like-minded colleagues and refining approaches.  When you collaborate you see both success and failure as a team effort.

Something the military learnt a long time ago is that most acts of courage are rooted in a drive to not let one’s comrades down. Unhealthy competition often undermines teamwork by pitting employees against each other, creating silos, increasing exclusion and reducing both diversity and innovation.

Myth 3: Competition always advances innovation and enhances performance.

We learn best from experience and from each other.  If competition is overly prioritised, innovation and employees are focused on outdoing each other, and creative problem-solving can suffer, the sharing of information and ideas can be stifled as psychological safety declines, and less risk is likely to be taken. Unless we’re careful, the AI of the future will likely increase competition between colleagues.

Myth 4: All high performers need a competitive environment.

Even high performers can suffer from the pressure of overly competitive environments, diminishing their performance over time and potentially leading to mental and physical exhaustion. While competition can motivate some employees, the pressure can also lead to stress, burnout, and mental and physical health issues, impacting overall performance and well-being. It is also important to remember that not all high-flying employees thrive in a competitive environment – for example, introverts may not welcome the experience because they are energised intrinsically from within.

Myth 5: Most people are motivated by competition.

Competition is a base motivation and therefore is used a great deal. Winners will always advocate for more competition while likely ‘losers’ of the competition will not. Leaders at the top of organisations who have never failed often show ignorance because making mistakes or failing in some way can be enormously helpful for growth. There is a clear anecdotal link between high internal competition and a higher turnover rate because of lower job satisfaction. Personal recognition, training, and a supportive work environment is often more effective in driving long-term motivation and engagement.

Five Reasons Why Competition Can Be Good For The Workforce… When Managed Properly.

Let us first define what we mean by Healthy Competition:

Healthy competition is characterised by positive motivation that encourages individuals to strive for personal and team excellence, fostering growth, learning, and improvement. It promotes collaboration and teamwork, creating a sense of camaraderie and mutual respect, and encourages the sharing of knowledge and resources to achieve common goals. Ethical behaviour is a cornerstone, with adherence to fair play and integrity, ensuring that rules and standards are followed. Constructive feedback is prevalent without waiting for some formal process, providing opportunities for positive reinforcement and constructive criticism. This in turn encourages self-reflection and continuous improvement. The focus is on achieving personal bests, emphasising individual progress and celebrating the achievements of others as a source of motivation. A balanced perspective is maintained, recognising that winning is not the only measure of success and valuing the learning and experiences gained from the process.

1. Better Achievement of Goals: Individuals and teams in healthy and respectful competitive environments may be likely to meet their goals and targets compared to teams in non-competitive settings, particularly in the case of short-term goals. When employees take responsibility for their work it stops us running on autopilot and stretches us, moving us out of our comfort zone into a learning zone. Combining skills creatively and collaboratively produces a higher quality output.

 

2. Productivity Growth: Healthy competition encourages employees to excel, to increase productivity and encourage innovation. Putting individuals where they can shine means you will get the best out of them.  In healthy competition employees can use more of the skills that they are uniquely good at, boosting individual performance.

 

3. Heightened Performance: Healthy competition heightens physiological and psychological arousal, priming the body and mind for greater effort, and enhancing performance. There can be excitement around healthy competition to complete a project. Moderate, short-term, good stress known as eustress can enable learning and change and lead to positive outcomes.

 

4. Development of Skillsets: Healthy competition in the workplace helps develop new skills and improve existing ones such as time management, good communication and problem-solving. When we can learn from one another we create rich learning conditions and a confidence-building environment, as opposed to one that chips away at self-esteem.

 

5. Improved Engagement: Healthy competition (particularly inter-team) can be an excellent way to inspire, involve and rekindle interest in daily tasks. Leaders have a chance to spot initiative, creativity and leadership skills as well as see areas where training might be required. Employees may be happy to work harder to reach a goal including shared objectives.