Metaverse: Virtual Currencies as a Mechanism for Employee Engagement and Retention

Abstract

Virtual currencies, including cryptocurrencies and non-fungible tokens (NFT’s), are increasingly used as rewards in virtual environments. Traditional reward systems have been effective in improving employee satisfaction and retention but with the shift to hybrid or remote work post-COVID-19, organisations need adapted reward systems. However, the problem of this research is that it’s unclear how virtual currencies can be effectively utilised as a reward system, in the Metaverse, and their impact on employee motivation and engagement. This study explores this by reviewing literature, analysing reward mechanisms, and proposing a conceptual model to evaluate the feasibility of such a reward system. The study considers factors like social comparison and loss aversion as well as rewards known to boost motivation and engagement. The flexibility of virtual currencies for conversion or exchange into rewards offers numerous possibilities, with specific reward choices left to organisations’ discretion. This study offers promise to organisations seeking to retain and motivate their employees, ultimately contributing to increased productivity. In turn, employees can benefit from improved job satisfaction and reduced work-related pressures. The study’s conclusion assesses the usefulness of this research and outlines potential areas for future research.