Who doesn’t want an engaged, high-performing organization that consistently achieves and exceeds goals? You may be tempted to dismiss such a thing as fantasy, but it is entirely possible to make reverie a reality. When it comes to improving employee engagement and performance, most companies search for dramatic overhauls that will bring immediate success. But real change doesn’t need big steps. Rather, significant, long-term success can be achieved with small and simple actions repeated over time.

This compelling strategy is the power of marginal gains – the idea that small improvements, repeated daily, compound to deliver significant, transformative results.

Habits harness the power of marginal gains. By embedding simple, productive behaviors into your team’s daily routine, you create a ripple effect of elevated employee engagement, sustained growth and enhanced performance. This “aggregation of marginal gains” is the secret to achieving extraordinary outcomes.

Small Changes, Big Results

The concept of small, incremental improvements isn’t new, but its application in business often goes overlooked. In the high-pressure environment of modern workplaces, leaders tend to favor sweeping changes or bold initiatives over smaller, steady adjustments. Yet research consistently shows that minor changes in daily routines can lead to lasting success.

For instance, consider the 1% Rule – if you get 1 percent better each day, you’ll end up 37 times better in 1 year. This compounding effect is rooted in mathematics but applies equally well to organizational development. A 1-percent improvement might mean completing tasks slightly faster, reducing errors or increasing focus during meetings. Over the course of weeks and months, these micro-improvements multiply, creating more talented, flexible, creative, productive and engaged employees, which in turn solidifies the organization’s edge over its competitors.

The Science Behind Habits

At the heart of this approach lies the science of habit formation. Habits are powerful because they automate behavior, reducing the cognitive effort required for decision-making. This frees up mental bandwidth for innovation, problem-solving and strategic thinking.

Neurologists describe habits as part of the habit loop, consisting of three components:

  • Cue: A trigger that initiates the behavior
  • Routine: The behavior itself
  • Reward: The benefit that reinforces the habit

For example, a team that consistently reviews project milestones every Monday morning is responding to a cue (the start of the week), performing a routine (milestone review), and experiencing a reward (actionable priorities and clear accountability). By understanding this loop, leaders can shape productive habits by replacing unproductive behaviors with small, impactful routines.

Routine and the Sequence of Small Wins

Routines serve as stabilizers for busy teams. They provide structure and consistency, ensuring that essential tasks don’t fall through the cracks. Well-designed routines reduce stress, enhance collaboration and create a sense of shared purpose.

In fact, teams with established routines to collaborate effectively are 50% more productive than those without. Routines create a reliable framework that frees up mental energy for creative and strategic work.

One of the most compelling aspects of routines is their potential to create sustained behavioral change through daily habits. Unlike one-off training sessions or large-scale interventions, which quickly fade from memory, habitual actions become ingrained in the team’s culture.

Take video-based microlearning as an example. Instead of overwhelming employees with lengthy, once-a-year training sessions, this approach delivers short, focused learning bursts every day. These two-minute videos, consumed in the flow of work, reinforce key skills and build a foundation of continuous improvement.

By embedding microlearning into their daily routines, employees develop a habit of learning that compounds. Over weeks and months, this habit results in better knowledge retention, higher employee engagement and improved job performance.

How Leaders Impact Habit Formation and Employee Engagement

Leaders play a critical role in shaping their team’s habits. Rather than micromanaging, leading by example and fostering an environment where positive habits can thrive set the example for the entire organization. Here’s how:

#1 Modeling Desired Behaviors:

Leaders set the tone for the organization by demonstrating the habits they wish to instill in their teams. When managers consistently engage in productive habits, employees are more likely to mirror those behaviors. Consistency from leadership sends a clear message: habits matter.

#2 Providing Clear Direction:

Habit formation thrives on clarity. Leaders who articulate the “why” behind new processes or initiatives help employees understand how these habits contribute to both individual and organizational goals. This alignment fosters a sense of purpose, which is a critical driver of employee engagement.

#3 Creating Opportunities for Success:

Leaders who focus on small, achievable wins build confidence and momentum within their teams. These incremental gains reinforce positive behaviors, making it easier for employees to adopt and sustain productive habits. This process strengthens employee engagement, as employees feel a sense of accomplishment and value.

By actively participating in and supporting the habit formation process, leaders ensure that small, daily improvements become the foundation for long-term success.

Habit-Building with Video-Based Microlearning

Technology makes it easier than ever to instill habits in the workplace. Platforms like Tyfoom leverage video-based microlearning to create consistent learning habits. By delivering short, engaging videos directly to employees’ devices, Tyfoom ensures that learning becomes an integral part of the workday rather than an occasional event.

These platforms also use features like gamification, push notifications, and progress tracking to reinforce habits. For example:

  • Gamification: Leaderboards and badges motivate employees to complete learning tasks consistently.
  • Push Notifications: Gentle reminders keep employees on track without being intrusive.
  • Progress Tracking: Analytics help employees and leaders measure improvements over time.

By integrating technology into daily routines, organizations can drive employee engagement and accountability while ensuring that small gains accumulate into meaningful results.

The ROI From Small Gains

To ensure that habits lead to tangible results, you need to measure their impact. Tyfoom’s video-based microlearning approach ensures employees engage with content regularly, turning training into a seamless habit rather than a disruptive chore. By integrating small, daily learning sessions into employees’ routines, organizations experience a variety of benefits like reduced training costs, improved knowledge retention and increased productivity.

Real-time data tracking and employee engagement analytics empower leaders to identify both skill gaps and high performers. Tyfoom also reveals who is disengaged completely. When users routinely miss or skip training, they are flagged, alerting managers that the individual may need additional outreach or coaching. Analytics encourage creating a culture of continuous improvement and accountability.

The power of habit goes beyond individual behaviors, however; it shapes organizational culture. When teams embrace small, daily gains, they create a culture of continuous improvement founded on curiosity, collaboration and resilience that drives the long-term success of the company.

The Power of Habits in Action

Transforming team performance doesn’t require grand gestures or sweeping changes. It’s the small, daily habits repeated consistently that ensure sustained growth and success.

Leaders who understand the power of habits can build a cadence of success – where progress is not only possible but inevitable – one small gain at a time.

Ready to transform your own team’s performance with the power of habits? Learn how by scheduling a meeting to speak with a Tyfoom training consultant today!