review · Feedback, Team Building · 30–60 min · 5-50 people · medium energy
Merit Money
Merit Money is a peer-to-peer recognition system where individuals allocate virtual currency or points to colleagues based on their contributions and collaborative efforts. It fosters a culture of appreciation and highlights valuable behaviors often overlooked by traditional performance reviews.
When to use Merit Money
Use Merit Money to encourage collaboration, recognize contributions to shared goals, and provide continuous 360-degree feedback within teams or organizations.
What it solves
Lack of recognition for collaborative efforts, unfair compensation systems, low intrinsic motivation.
How to run Merit Money, step by step
- Explain the concept of Merit Money and its purpose. (5 min)
- Distribute virtual currency or points to each participant. (5 min)
- Allow participants to allocate their 'merit money' to colleagues, providing specific reasons for their recognition. (30 min)
- Collect and tally the results, and publicly acknowledge the recipients. (10 min)
- (Optional) Convert 'merit money' into bonuses or other rewards.
Materials needed
- Virtual currency or points (physical tokens or digital platform)
- Explanation of the system
- Method for tracking allocations (spreadsheet, online tool)
Facilitator tips
- Emphasize the importance of specific and meaningful feedback when allocating 'merit money'.
- Ensure that the system is transparent and fair to build trust.
- Consider the cultural context and adapt the system accordingly.
Common pitfalls
- Participants may allocate 'merit money' based on personal relationships rather than actual contributions. - Encourage specific examples and justifications.
- The system may become competitive or political. - Emphasize collaboration and shared goals.
- Lack of follow-through with rewards can undermine the system's credibility. - Clearly define how 'merit money' will be used.
Variations
- Use different types of rewards, such as public acknowledgement, extra vacation days, or professional development opportunities.
- Implement a 'kudos' system without monetary value as a continuous feedback tool.
- Adjust the frequency of 'merit money' allocation based on team needs.
Running it online or hybrid
Use a digital platform like Bonus.ly or a shared spreadsheet to track and distribute 'merit money'. Ensure anonymity when appropriate.
What it produces
A record of peer recognition and allocation of 'merit money', potentially leading to bonuses or other rewards.
Origin
Adapted from Management 3.0 — source
Build a session around Merit Money
METODIC places Merit Money inside a complete, timed session plan — agenda, worksheets, facilitator guide and slides — matched to your group and goal.