Is Inter-Team Competition Healthy in the Workplace?

When it comes to the workplace, there is a certain level of built-in competition amongst workers. This is because most people have a natural drive to want to stand out to upper management in order to succeed and get ahead with promotions, raises, and accolades. On the other end of the same coin, most workplaces today encourage teamwork as opposed to seeing your fellow coworkers as competition. This is where things get a little gray. Is inter-team competition healthy in the workplace? Or is it hampering productivity, confidence, and happiness among workers?

Winner Takes All

Whether or not we like it, there is always going to be some competition at work. The amount will vary by industry and frankly, by the person. Some people are naturally far more competitive than others. The New York Times cited “competition that remains perhaps the defining feature of the upper echelon in today’s white-collar workplace.” This is true for many large companies known to pay generously, such as:

  • Amazon
  • Netflix
  • Goldman Sachs
  • And even the White House

These companies are notorious for their “winner takes all” approaches, which can backfire. Because these companies and more promote competition, people begin to burn themselves out in order to stay competitive and thus, stay ahead. Someone may suggest a better work/life balance, but the first person to answer emails on vacation or at 3 AM suddenly seems more “dedicated” than the person who wanted a better balance and the cycle of competition continues.

The legal field is “one of the most brutal when it comes to pace and time commitment,” according to The NY Times. It “illuminates the economic logic of a system where a large initial cohort of workers is gradually culled until only a small fraction are left.” This type of workplace competition creates the pressure to always be available and has the perception of looking unfavorably upon those who are not.

Pros of Workplace Competition

While the “winner takes all” mentality may scare some off, it is enticing to others. Not all work environments are brutally competitive, some hit the right balance and there can be benefits to this.

  • The Reward: Let’s be honest, one of the biggest perks of a little healthy competition in the workplace is the enticement of the reward at the end. This could be anything from praise to a promotion or an increase in our salary.
  • Rivalry is Psychologically Healthy: According to this psychological medical journal, a little rivalry instills a sense of purpose in us. This ranges from sports teams to work teams and even our personal relationships. When rivalry and competition are present in our environment, it can motivate us to put in more effort, take our job more seriously, and perform better.
  • Increased Productivity: In tandem with the above, inter-team competition can increase our desire to go the extra mile and increase our production output.
  • Increased Teamwork: While in essence, we are competing with our team, this also brings the opportunity to show we are a team player rather than someone who cannot get along with others. Having both qualities stands out in the workplace.
  • Opportunities for Innovation: When there is some competition, it brings forth the opportunity for us to solve problems and streamline workflows in new and better ways. This will also help you stand out to upper management.
  • Weed out Poor Workers: If someone on your team is underperforming, it would be unfair for them to receive the same amount of credit as those who are performing adequately or well-above standards. Inter-team competition helps show people’s true strengths and colors at work.

Cons of Workplace Competition

In some scenarios, inter-team competition can be too intense and have some negative consequences for workers and upper-management alike.

  • Unethical Practices: In one instance, employees at Wells Fargo were pressured by executives to meet revenue quotas. Because of this, some employees took to falsifying bank accounts and credit cards in order to get ahead. Forbes stated that Wells Fargo is now looking at a $3 Billion repayment plan to make up for these actions.
  • Tensions: Some people will take competition in the workplace too seriously and this can create unhealthy rifts between coworkers.
  • Burnout: Perfectionists will be the first to burn out by always striving to stay ahead and stay on top. Others will soon experience workplace burnout, especially if staying competitive means decreasing the time spent on their health and personal lives, which can increase unhappiness and health-related conditions.

Conclusion

Inter-team competition “between employees is an inescapable part of most people’s work lives,” says the Harvard Business Review. People adapt to a certain level of expected competition. When the right balance is struck by both workplace and employee, this can be where productivity booms and respect and confidence come without question. If the competition is at an unhealthy level, people will feel pressured to keep up out of fear of losing their job if they don’t. If the competition is healthy, it can increase happiness, sense of purpose, and teamwork amongst employees.

Harvard Business Review conducted a study with 204 employees from a wide background of industries and asked how competitive their workplace was and how they felt about it. Their analysis reported “when the employment policies elicited excitement, employees were significantly more likely to use creativity. When managers felt anxious about employment policies, they were significantly more likely to cut corners or sabotage colleagues.” This all comes down to how competitive the work environment is, what the reward is, and how employees feel and approach inter-team competition. Inter-team competition is something that needs to be clearly defined with consequences laid out as well as the rewards in order to have it be successful in the workplace.