Merit Money: How Agile Management Can Revolutionize Employee Recognition

Introduction: The End of Traditional Bonuses?

Imagine a highly motivated team, where each employee feels valued not only by the boss, but also by their colleagues. Now, imagine that this recognition is distributed in a transparent, fair way, and in line with the company's values. Does it seem far from reality?

Many companies still use traditional bonuses based only on financial goals, which can lead to demotivation, lack of collaboration, and unequal rewards. Merit Money emerges as a modern alternative, bringing the principles of agile management to the appreciation of employees.

But after all, what is Merit Money and how can your company apply it? Let's explore now!

1. What is Merit Money?

Merit Money is a decentralized recognition and reward system, inspired by agile management and Management 3.0. Instead of leaders unilaterally determining bonuses, employees themselves distribute virtual coins among themselves, recognizing actions that have had a positive impact on the company.

How does it work in practice?

🔹 Each employee receives an initial balance of virtual currencies.
🔹 Throughout the month, they distribute these coins to colleagues who have shown valuable contributions.
🔹 The accumulated currencies can be converted into benefits, prizes or internal advantages.

📌 Differential: Recognition comes from those who really follow the employee's work on a daily basis – their peers.

2. Why Does Merit Money Work Better Than Traditional Bonuses?

📉 The Problems of Conventional Bonuses:

• Excessive focus on financial goals: Often disregards interpersonal skills and collaboration.

• Subjectivity of managers: Individual decisions may seem unfair or based on favoritism.

• Late reward: Annual recognitions lose motivational impact.

• Lack of alignment with organizational culture: The criteria for awards may not reflect the company's values.

• Lack of transparency: Employees often don't understand how and why bonuses are distributed.

🚀 The Advantages of Merit Money:

✅ Continuous recognition – Appreciation happens at the right time, reinforcing positive behaviors.
✅ Collective engagement – Everyone actively participates in the process, increasing the sense of belonging.
✅ Transparency and fairness – Distribution is decentralized and based on multiple perspectives.
✅ Strategic alignment – Rewards are distributed based on criteria that reflect the company's values and goals.

3. How to Implement Merit Money in Your Company

If your company wants to adopt Merit Money, follow this step-by-step:

✅ 1. Define the Values That Should Be Rewarded

Which behaviors or deliveries really make a difference? Examples:

• Collaboration between teams

• Innovation and problem-solving

• Attitudes aligned with organizational

✅ culture 2. Choose a Management

Platform

Using a digital system facilitates the administration of Merit Money, allowing employees to distribute and accumulate coins in a transparent manner.

✅ 3. Establish Clear Rules

• What is the initial balance of each employee?

• Do coins expire?

• How can they be redeemed?

✅ 4. Offer Attractive Benefits for Exchange

• Days off

• Courses and training

• Exclusive company benefits

• Benefits club with national and local

📌 options YouDeserve Differential: Our platform allows the creation of personalized Merit Money systems, where employees can recognize colleagues and accumulate virtual currencies, redeeming rewards within a complete catalog of benefits.

4. Conclusion: The Future of Corporate Recognition

Traditional recognition models generate results, but they are not always sustainable in the long term. In today's fast-paced world, waiting an entire semester to evaluate and reward an employee can end up demotivating them and reducing the impact of the financial bonus.

This is especially true for Gen Z, who expect constant feedback and rewards that make sense for their daily lives. Companies that fail to adapt to this new model risk losing their talent to more agile competitors.

The good news is that Merit Money solves these challenges by creating a system that is decentralized, transparent, and aligned with the organizational culture. It empowers employees themselves to recognize each other's efforts, making appreciation fairer, more agile, and more continuous.

💡 If your company still uses traditional bonuses, it's time to evolve to a fairer and more motivating system.

How do you recognize your employees today?