At IGN, Employees Use A “Viral Pay” System To Determine Each Others’ Bonuses | Fast Company
Most companies hand out bonuses at the end of the year, and many of them do so as a form of profit sharing. But IGN Entertainment, a division of News Corp. that creates content and communities for gamers, has developed an innovative system where it’s the employees themselves who help decide how much of those profits should go to each worker.
It’s called “viral pay,” and here’s how it works: Twice a year, in January and July, IGN creates a basket of tokens (called “Tokens of Appreciation”) based on how much profit there is to share. It distributes the tokens among employees and has them give their tokens–which are worth $1 each–to whatever other employees they want, as recognition for a job well done.
So, for example, if there’s someone in ad sales who went above and beyond to help you on particular campaign, you might toss some tokens their way. Of if there’s a developer who you think always comes up with great ideas about how to solve particular engineering problems, you might send them a little token love as well. Employees can give all their tokens to the same person, but they usually divide them up among several people.