Here’s how to establish peer-to-peer recognition.

Step 1. Establish company culture first.

Step 2. Outline company objectives.

Step 3. Encourage leadership to set examples.

Step 4. Utilize technology

Step 5. Ensure recognition is fun.

Step 6: Assess the program.

Individual and team recognitions have always made a positive impact in the workforce. According to research, boosting employee recognition improves engagement and productivity by 40%.

Specific company benefits, such as boosting morale of employees, company culture, and retention rate, are reasons why recognition types like peer-to-peer need to be established in an organization.

Read on as we further discuss peer recognition, its benefits, best practices, real-life examples, and how to implement one in your company.

Peer-to-peer recognition, or peer recognition model, is a system where employees receive recognition from their colleagues and team members for their contributions, assistance, skills, and outstanding performance.

This culture of acknowledgement gives employees a boost to be productive and a sense of community in the workplace.

Recognizing peers can be done in a lot of ways, such as giving monetary rewards or dedicating appreciation through workplace recognition program platforms. Here is a list of peer recognition types that your company can adopt:

Verbal acknowledgment: A survey found that verbal praise is the most popular type of recognition at 72%. Saying a simple appreciation will not only make the receiver feel good, but it is also a chance to spark actual conversations and to bond together.

Written appreciation: Some of the ways to express gratitude are through a simple handwritten note or sending recognition emails containing how a workmate’s contribution has made a difference in team achievements.

Social endorsements: Recommending a peer’s skills and work ethic expands career opportunities. Social networking sites like LinkedIn give employees the chance to warrant their peers’ capabilities and increase their credibility and visibility.

Reward platforms: Companies focusing on recognition platforms have customized ways of rewarding employees through point-based systems, products, discounts, or award nominations.

Another way to promote recognition in the workplace is to give them incentives for their valuable contributions. With the Compensation Planning Software, you can administer rewards with centralized planning, error mitigation, and streamlined collaboration.

How important is peer recognition? Well, a survey suggests that appreciation from workmates is just as important as manager recognition. Forty-one percent of employees want to be recognized by peers, while 37% want to be appreciated by managers.

There are a good number of benefits from having peer-to-peer recognition in an organization. Here are some of them:

Establishing peer-to-peer recognition must have mindful steps to fully embody the essence of the program: giving genuine appreciation and encouraging employees. Here is how you can implement a recognition process for workers and their peers:

Step 1: Establish company culture first

Starting from the onboarding up to managing employees, make it a habit in the company to embrace recognition and appreciation towards peers. It is easier to build a program once there is a recognition rich culture in the organization. Then, develop an employee recognition program.

Step 2: Outline company objectives

In establishing a recognition program, consider the company values, goals, and objectives. Align them with your strategies to make sure that the direction you are heading towards is beneficial for both business success and employee satisfaction.

Step 3: Encourage leadership to set examples

As HR professionals and business leaders, you must be the role model of the employees. Show them how to provide recognition to peers by embodying the habit of recognizing efforts of your subordinates. Start being appreciative of small and big wins in your team.

Step 4: Utilize technology

Using recognition technologies will help you track and optimize the recognition shared and received, provide convenience for employees who want to participate, and give the impression that employee recognition is prioritized through utilizing tools and resources. Before implementing this, consider first the company size, budget, and goals and objectives.

Step 5: Ensure recognition is fun

A thank you note, or a written email goes a long way in making colleagues feel appreciated, but there are more innovative ways now to recognize peers. Leverage social media platforms or team meetings for public recognition or celebrate milestones that are unnoticed before. Small or big successes must be frequently, genuinely, and consistently recognized.

Step 6: Assess the program

Gain employee feedback and recognition experience. Assess if the outcomes of the recognition program have matched the objectives set. If the program is successful, maintain the approach. If the program is unsuccessful, ask the employees how it can be improved. The key here is to keep workers engaged, recognized, and fulfilled.

Assess the necessary incentives in your recognition program through combined compensation and benefits data, personalized total rewards statement, and effective pay communication. All these features are included in Compensation Planning Software, giving a simplified system for peer-to-peer appreciation.

To give you an overview on how other companies execute their peer recognition programs, here are real-life examples:

Airbnb: Airbnb has informal appreciation acts like pop-up celebrations and handwritten notes from direct managers. They also have virtual feedback forms to hear everyone’s concerns and ideas.

Zappos: Zappos has a peer-to-peer rewards system that involves play money earned from volunteering and used to redeem merch. They also have premium parking spaces as rewards and a bonus program where co-workers can give each other $50 per month.

Southwest Airlines: Southwest airlines give employees an opportunity to send a quick note of gratitude to peers or nominate them for President’s Award which includes SWAG points. These points are convertible to gift cards, experiences, or merchandise.

Peer recognition might be an easy thing to do, but it can get better once it becomes a workplace culture and a vital part of organizational values. Here are some of the best practices you can adopt for your team’s recognition program:

Ensure inclusivity: Make sure nobody gets left out or underappreciated by consistently giving recognition to only a few people. For a team to work, all employees must feel valued through acknowledging their individual contribution.

Make it frequent and current: Regular recognition ensures that colleagues are constantly reminded of their valuable inputs, not just a one-time thing. Immediate appreciation also matters as it means recognizing employees is a priority.

Be specific: The delivery of the recognition is an essential component. Anyone can feel good by a simple good job. However, being appreciated for a specific contribution makes colleagues feel that the process and hard work they have gone through are seen and understood.

Establish clear criteria: For an objective recognition program, define qualifications, behaviors, and accomplishments that are eligible for peer recognition. Set a broad range of achievements like meeting quotas, excellent customer service, or positive work ethic.

Do it in a fun way: To keep the employees engaged, make recognition fun and interesting. For workers, interesting recognition can mean bonuses or incentives. For some, it means unique social recognition or awards and certificates.

Ultimately, effective communication about benefits in the recognition program is crucial. An employee’s total reward statement must be conveyed with clarity and efficiency. Compensation Planning Software helps companies communicate with employees to expand their understanding of their total compensation and benefit packages.