Viability of compensating employees in cryptocurrency – An exploratory study

Abstract

Cryptocurrency is an emerging digital currency that revolutionized the transactional economy. It was valued at $2.2 trillion in April 2021, suggesting the widespread acceptance and usage of the currency. It penetrated numerous sectors including entertainment, infrastructure, healthcare, public sector, agriculture, financial services, travel, retail and information services. Recently these sectors started the practice of compensating employees in cryptocurrency (coins/tokens). This research explored the viability of compensating employees in crypto, across various components of compensation structure. This qualitative informative-exploratory research used the principles from the PRISMA model to screen 8,621 scholarly publications and reviewed 26 research publications and 23 companies using crypto for compensating employees. Content analysis and thematic analysis were conducted to report the findings. This research found that multinational organisations prefer to compensate global employees in crypto because of several advantages including ease of transfer, encrypted features, integration of blockchain technology, tax benefits, cost-saving and gain from crypto investments. Limiting factors such as the bartering nature of crypto, high volatility, tax regulations, limited investment avenues, resistance from employees and the market and concerns over its legality posed some doubts on its viability as a mode of payment. This study is of value to compensation and benefits experts, human resources professionals, finance professionals, scholars, and organisations who are interested in evolving technologies adding value to employees and businesses. This research added a new piece of knowledge concerning paying employees in crypto-currency that remained understudied until now.