In a game design class at Indiana University, traditional grades have been replaced by Experience Points:

Students of Indiana University’s game design classes start as Level 1 avatars with 0 XP, and progress by completing quests solo, as guilds, or in ‘pick up groups.’ Course coordinator Lee Sheldon says students are responding with ‘far greater enthusiasm,’ and many specifics of game design could also be directly applied to the workforce. These included: clearly defining goals for workers; providing incremental rewards; and balancing effort and reward.”

– Slashdot

Employers: Look to gaming to motivate staff