How healthy rivalry can build stronger corporate teams

As organisations continue to search for innovative ways to drive performance, a surprising source of inspiration is emerging—from the world of eSports.

While competitive gaming may seem far removed from the corporate boardroom, new research suggests that the dynamics of eSports teams could hold valuable lessons for HR leaders looking to strengthen collaboration, engagement, and performance.

“Within a single game, we can observe how teammates coordinate—whether that’s moving strategically through a map or timing their actions together. It’s like sitting inside a high-performing corporate team meeting, except every action is recorded in detail,” Kenny Ching, senior lecturer at the University of Auckland’s Business School, told HRD.

At a broader level, researchers can analyse patterns of cooperation and rivalry over time: how often players work together, how often they compete against one another, and how these past relationships shape future performance.

“That’s the kind of data that helps us understand collaboration patterns in ways you rarely get in a normal workplace,” said Ching, co-author of the  research.

This repeatable performance data, he noted, can be used to fuel new thinking about how competition is implemented into the workplace.

Competition as a catalyst for stronger teams

While competition between companies is nothing new, Ching pointed out that internal competition within a business can also yield surprising benefits.

“When you introduce competition, people naturally have a vested interest in the outcome. That sense of ownership can make them more invested, more motivated, and more willing to go above and beyond.”

“We see anecdotal evidence suggesting that friendly competition helps teammates learn about each other—often at a deeper level than they would have if they’d only worked together. That familiarity can translate into stronger engagement,” he added.

Colleagues aren’t being undermined through competition, Ching cautioned, but rather, creating friendly rivalry which suggests gives employees a greater understanding of being better teammates in the future.

By temporarily casting colleagues as competitors—and later reuniting them on the same team—companies may foster stronger bonds, deeper trust, and higher levels of engagement than if employees had only ever worked collaboratively.

Competition to boost employee engagement

Ching noted that early organisational research outside eSports is showing similar trends: repeated, friendly competition helps colleagues learn about each other in ways that traditional teamwork cannot.

This familiarity can translate into smoother collaboration and stronger performance down the line.

“Competition could help to build familiarity or rapport on a level that’s even better than if they had just been teammates,” Ching said.

“We think there is some evidence that friendly competition helps teammates to learn more about each other, which can increase engagement in future projects.”

Innovation tournaments, hackathons, and cross-team challenges are already being used by global brands to spark creativity - Samsung, for example, run internal competitions to encourage innovation, with teams pitching against each other for funding.

Fine balance introducing competition into workplace

However, Ching cautioned that competition must be designed with care. In eSports, losing a single match rarely threatens a player’s career prospects. In a workplace, the stakes can feel much higher.

“If organisations want to incorporate competitive dynamics, they need to make sure employees understand that competition is meant to be fun and developmental—not a zero-sum game where someone gets left behind,” he advised.

The key is creating a culture where rivalry fuels growth, not fear. Competitions should be framed as opportunities to experiment, innovate, and learn—while reinforcing that everyone remains part of the same team.

The challenge, Ching concluded, is turning healthy competition into a structured tool for talent development, innovation, and team performance.