A new startup Bonus.ly is all set to launch a peer-to-peer bonus, an incentive model to help companies reward and motivate employees. It uses a Web platform that offers a different approach to employee recognition, reward and collaboration.
Employers fix a bonus budget for the peer recognition program and each team member gets a monthly allowance for granting peer bonuses. Employees then reward one another for their work in the form of praise and peer bonuses. The bonuses come in set levels, starting from $20, with increments of 10% of the employee’s total budget. Employers then pay out employee reward bonus balances.
Bonus.ly also sends a series of emails reminding employees to use their peer-to-peer bonus budget, as it does not roll over to the next month. That helps motivate employees to give recognition and spend their budget.
Since the bonuses are given by peers, there is more transparency and employees know exactly why they got the award. Bonus.ly will also periodically highlight the best employees with special peer awards and analyze bonus data and provides insights to managers, such as the names of top performers.
Managers and administrators can also refer to the platform for quarterly staff reviews for a better understanding of how their employees are performing. The platform runs openly within organizations to deter attempts to spoof the system, says co-founder Raphael Crawford-Marks. Whenever someone awards currency to another employee, it is displayed on the platform to everyone within the organization. It lets managers keep track of suspicious activity such as certain employees giving perks to the same people over and over without supported reasons. “Transparency is an extremely powerful tool for limiting corruption,” he says.
Bonus.ly is currently free and will remain so during its alpha period and is expected to be launched in two to three months. Founder Crawford-Marks said he plans to charge companies on a per-user basis, starting from $1 or $2 per employee.
Check out www.bonus.ly