Competition is inevitable—and something that employees thrive on.
This is because it is a source of both intrinsic and extrinsic motivation.
Every business requires its employees to push themselves and foster a spirit of healthy competition.
What do we mean by healthy competition?
Healthy competition is something that increases the productivity yield, leads to a higher engagement level and motivates employees.
That being said, if the competition gets too aggressive, it may lead to employee burnout. This will drastically lower employee morale and lead to employee resentment in the long run. To prevent this, it is important that small business owners take ardent steps to keep employees on their toes and encourage healthy competition.
Develop a team-centric mindset
A good leader has the ability to maneuver his team in the right direction and develop a 
‘team first’ mentality.
If every member of a team works towards achieving the targets for the team as a whole, it will increase collaboration amongst team members.
This will help them to discuss key parameters and draw from each others’ experiences. Each one will then set down to work in their individual capacities, working within a close-knit team to deliver desired results.
One effective way of carving out that mindset is by setting SMART team goals, acknowledging team efforts and celebrating them.
This could also entail, highlighting each individual’s contribution to the success of the entire team.
This instills a sense of belonging and purpose amongst employees.
Individual Performance Is Equally Important
Just as teamwork is believed to drive results, individual goals are also equally important. When only the top achievers are highlighted for their unprecedented performance, the rest tend to get demoralized as they feel they are not competent enough.
Focusing on individual strengths and awarding everyone for their hard work and efforts will eliminate resentment and prevent the competition from becoming unhealthy.
The theory that you are your own competition motivates employees to beat their own individual scores and continuously improve.
Creating Transparency
Healthy competition fuels a team to break all records and enhance the bottom line.
Creating data transparency for the purpose of promoting healthy competition is known as gamification. Performance charts and employee ranking are generated through system software and are accessible to everyone to help each member assess their present situation.
It is constantly updated; the entire team is available to help each other out to uplift the performance of those lower down in the chart. Setting the right tone for competition ensures that your team is like a support system, each one helping out the other.
A good leader ensures that his employees stay motivated by rewarding them consistently for their efforts. Depending on the nature of work and the level of accomplishments, managers can decide how to best compensate their employees for their hard work. This could be in the form of monetary benefits, a paid vacation or just a word of praise.
For more leadership development tips and customized advice for your small business, contact me. I’ll be more than glad to implement my knowledge and years of experience to help you.
