ELP Coins — the Story Behind EL Passion’s New Generation Employee Benefit
See why we decided to create a virtual currency that allows our employees to participate in the financial success of the company.
Humans are at the heart of technology.
It may seem counterintuitive, but the tech industry is built on people. It truly is. And, as a design and development firm, we get to understand and reflect on the various perspectives of entrepreneurs, product owners, and investors. They want to work with us not only because we employ qualified people (a valuable advantage in the market), but also because we have THE people. People who are talented, collaborate well and embody the industry’s best practices. They also collaborate in highly effective self-managed teams.
Engagement is the new oil
For digital businesses and remote companies out there engagement is the oil fueling their operations — now more than ever.
Engagement is renewable, but it doesn’t mean that it cannot be exhausted at some point. So just like the Olympic flame, it needs to be protected. Employees who are engaged perform better, experience less burnout, and remain with their organizations longer.
At EL Passion we know that and we incessantly put our efforts into maintaining this flame.
Real appreciation in a workplace instead of smokescreen benefits
In EL Passion’s 10 years history, we’ve always strived to create an appreciative work environment that helps our team members grow. And for us, it means more than “fruit Fridays”.
A few years back we introduced Salary Formula — a transparent salary system ensuring equal growth and pay raise opportunities. Our goal was to build a fair system where employees’ salaries weren’t dependent on their negotiation skills but their actual tech skills and engagement. Solutions such as Salary Formula help us avoid gender gaps and provide equal wages to people with the same level of experience; it’s a predictable path of promotion, and, at the same time, it allows to distinguish exceptionally talented people.
What are ELP Coins and who are ELP Partners?
Our newest initiative, the “EL Passion Coins” (ELC for short) program is aimed at talented and engaged people. ELP Coins is a virtual currency used to reward commitment to the development of EL Passion and to honor employees and associates who go beyond their job descriptions to support our overall growth.
ELP Coins have no material form. The register of beneficiaries is kept in an electronic form. We didn’t use typical smart contracts as we currently don’t want to use ELC for transactions.
ELC is an elevated version of a company performance bonus. ELP Coins as a virtual currency is a solution that provides benefits of possessing employee shares while working at the company while minimizing formalities. In order to operate ELC, we do not need to involve a notary every time. It is also worth noting that our virtual currency is not a cryptocurrency. It is inalienable, i.e. it cannot be traded or speculated. Its value is determined in relation to the company’s valuation.
Each holder of ELC will get a share of the company’s yearly profit. The amount will be calculated in a proportion to owned ELC. Also during the time of active work at EL Passion, ELC holders have an option to buy shares in the event of a stock exchange listing or share in the profits from ownership changes. These things are not currently planned but are an additional form of securing employees’ futures.
As ELC owners are the top contributors to the company’s success we title them as EL Passion Partners (ELP Partner). We believe this reflects their internal status and gives them better recognition. And peer recognition is also a part of maintaining a healthy level of motivation in the team dynamics.
Great opportunity for entrepreneurial IT specialists
I see ELC as a great tool to attract and reward people who are key to increasing the value of our business. It also gives us the opportunity to compete with the largest corporations for the most talented specialists.
Many of our team members have entrepreneurial ambitions. And many of them understand that running your own business involves a change of responsibilities, formalities, and a level of uncertainty that comes with additional stress. Also, new ventures often start with smaller projects that may not fulfill great ambitions.
ELP Coins embraces a more entrepreneurial approach to a full-time job.
Handing over 15% of the company and its profits to the team
Personally, I am glad we managed to develop a solution that meets people’s need of wanting to work for their own success and supports their entrepreneurial ambitions. And at the same time it allows our experts to focus on what they love and do best instead of dealing with formalities.
I am glad that the owners of EL Passion, i.e. Daft Code Ventures decided to believe in this initiative and hand over a part of the company and the profit it earns to the team. I see it as a meaningful change in our growth process.
At the end of the day, I believe that both EL Passion and our team will benefit from this endeavor. We hope ELP Coins will become a motivating tool — employees will see how their commitment translates into our financial success and their recognition in the work environment. And the company always thrives when the team is motivated and satisfied.
So far ELP Coins went to the hands of managers. Our goal is to transfer 15% of the company’s shares into the hands of our employees over the next 3 years.
I see it as an expression of mutual trust and respect. Let’s grow together!
EL Passion is an agile product design & development agency.
