Holacracy Community of Practice Archive, 2015-2019 Community Holacracy Web Site

A bonus distribution app based on "Merit Money"

OK, this is my first try in building an app and I might be over-ambitious with this. So please, I invoke you benevolence and will be more than eager to get feedbacks to make this better!

The aim is to propose a bonus system that fosters collaborative work (as opposed to individual performance) and supports intrisic motivation. The whole thing is presented by Jurgen Appelo here:


For some reason, the PNG showing the mindmap I did from the vid wouldn't upload.

And a final Thanks to Chris Cowan, whose Compensation app I copied and pasted with absolutely no sense of shame :-)


Here’s the idea:
Every partner receives a credit of 10 (or 25, 50... as you see fit) Hearts each month (or weeks), which have the following charateristics:
- they carry no monetary value whatsoever,
- they expire at the end of each following month (or week),
- they must be distributed.

During the month, each partner must distribute any number of these Hearts to any other partner they want, based on what they perceived of their work during that month. You can also decide to base the attribution of Hearts on the help one employee received from another one in any of his/her roles during the month. These Hearts once distributed become Kudos, and they rest attached to the partner to whom they've been distributed. So these Kudos pile up months after months.

When the Random Bonus system triggers a value to Kudos, the partners can cash in their Kudos to a corresponding amount of money, or can decide to keep them for a future bonus.

You have to decide for a random event during the year that will trigger the dice rolling. This can be rolling a dice every 3 weeks, or building a software that does it at random times throughout the year; you can base that also on the amount of money currently in the bank account (a certain amount would trigger the bonus, for example).

New Role in GCC:
« Merit Money »
Domain: employee bonus system
    •    Communicating the vision of the overall bonus strategy and process.
    •    Communicating about any change to the bonus system. 
    •    Developing and maintaining a company-wide employee bonus system.
New Roles within Merit Money Circle:
« Bonus Architect »
    •    Defining and rolling out a high-level bonus process, including philosophy and strategy for the system.
    •    Reviewing bonus analysis and possible changes, and giving feedback on employee perspectives.

 « Bonus Maker »
    •    Setting up and maintaining a process that randomly selects during the year the times when Kudos could be exchanged for money.

« Bonus Support »
    •    Providing understanding about getting a bonus.
    •    Communicating the details of the bonus process.
    •    Sharing resources and updates about the bonus system.
    •    Supporting employees to navigate the bonus system.
« Bonus Reviewer » [Multi-filled with a focus per employee for any requested bonus adjustment]
    •    Reviewing bonus adjustment requests and making recommendation based on first-hand experience of the employee’s performance
New Policies in Merit Money Circle:

Bonus Policy:

Not any one of the 10 Hearts received monthly by each employee can be kept the following month.

Any employee can distribute part or all of the 10 Hearts received each month to any other employee at the end of said month; this shall not be given away on any other criteria than the perception of the work the recipient has done in his or her Roles in the interest of the whole company, the fulfillment of the various corresponding Circle’s Purposes, or the organisation Purpose, during said month. Hearts, once given, become Kudos.

Kudos cannot be given away.

Kudos will only be exchanged for money as per Bonus Maker decision system.

No fixed exchange rate will be decided out of Bonus Maker decision system.

Kudos do not have to be all exchanged at once.

Bonus Reviewer Policy:

Any employee may request a bonus adjustment for an employee.

When reviewing a given employee’s bonus adjustment request, the Bonus Reviewer must be filled by at least 2 people with a focus per employee, one a Lead Link in a circle they have worked in, and one by someone who works closely with the person and is not a Lead Link.


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