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As organisations undergo digital transformation, higher education in Human Resource Management (HRM) must pivot from traditional, passive pedagogical methods to interactive learning that effectively engages digitally competent students. This project addresses the persistent challenge of cognitive overload and disengagement in specialised HRM education by evaluating the integration of a gamified learning activity within a Compensation and Benefits (HRM648) course. Anchored in Flow Theory, the intervention utilised a structured, six-step digital platform focusing on a selected topic of pay-for-performance, incorporating avatars, real-world case scenarios, collaborative problem-solving, and immediate feedback mechanisms. A quantitative assessment of 32 participating students revealed a largely positive response to the gamified learning activity. Results demonstrate that a significant proportion of 40.6 percent attaining a score of 80 or higher, and 6.3 percent achieving a perfect score of 100. These findings indicate that integrating dynamic game mechanics successfully translates intrinsic motivation into tangible academic success, keeping students optimally immersed and academically driven. The study highlights that gamification in higher education is not merely an aesthetic enhancement but a vital cognitive tool that allows students to safely experiment with the ethical structuring and strategic deployment of compensation packages. Ultimately, this pedagogical shift closes the gap between academic theory and practical application, cultivating a higher tier of professional readiness for future HR practitioners. Future research should explore a larger, diverse group of students and capture micro-level behavioural data to further clarify the gamified learning process.