12 best practices for peer-to-peer recognition

Most companies encourage manager and leadership feedback but neglect the power of peer-to-peer recognition. Not only does peer recognition boost team morale and enhance engagement, it also increases productivity, improves customer service, and decreases absenteeism — ultimately having a dramatic impact on your bottom line.

Read on to learn how recognition has changed over the past few years, how it benefits your company, and for best practices to create a culture of recognition.

What is peer-to-peer recognition?

Peer-to-peer recognition is the act of acknowledging another employee’s skills, deliverables, or talent. Usually people think of recognition coming from their boss, but positive feedback from peers can be just as powerful. Peers are ‘in the trenches’ with each other and know the unique, day-to-day obstacles and challenges. This deeper understanding can make peer recognition especially meaningful.

What is an example of peer recognition?

Here are some examples of peer recognition tactics:
Employee spotlights for recognized employees
Points-based recognition programs with;
Social and monetary recognition options
Public recognitions on productivity tools like Microsoft Teams
Social media shoutouts
Free lunch or coffee for recognized individuals or teams
Certificates or awards

Why does peer-to-peer recognition matter?

Peer to peer recognition matters because peers are in close relation with each other and have shared unique, day-to-day obstacles and challenges. This deeper understanding can make peer recognition especially meaningful.

Adrian Gostick and Chester Elton, authors of Leading with Gratitude, found that 67 percent of managers think they are above average in offering praise and recognition to their employees but only 23 percent of their workers agree. How can you bridge this gap? Although peer-to-peer recognition might seem insignificant to some, it carries more impact company-wide than you may suspect.

Why peer-to-peer recognition matters

Benefits of a peer-to-peer recognition program

Enhances company culture: Peer-to-peer recognition can establish a more collaborative, empathetic work environment. When you recognize a peer, you help them feel appreciated and more confident. Peer-to-peer recognition strengthens connection among teammates and helps people feel like a sense of belonging.
Fosters diversity and inclusion: Peer-to-peer recognition is one way that companies can emphasize diversity and inclusion Encouraging employees to publicly recognize teammates for the unique skills and experiences they bring to the table starts to create a sense of connection and belonging. Not only that, peers can recognize others who are living out D&I values, such as running Employee Resource Groups or working on D&I initiatives. Organizations can even have specific company values around D&I incorporated into their recognition program. Recognition ensures employees are getting recognized often and being valued for not just their work, but their uniqueness as well.
Strengthens team morale: Positive work relationships are crucial to keeping your employees happy. During times of crisis and changes in the workplace, these relationships become tougher to uphold. Peer recognition can help increase employee morale by enabling colleagues to extend words of support and appreciation to another on an everyday basis.
Improves performance: According to Gartner, peer feedback can enhance performance by as much as 14 percent. A study from Harvard Business School also found that it can dramatically increase motivation and performance. Peer recognition can be little to no cost to your company, and yet it can yield a significant and measurable impact on performance and productivity.
Increases employee engagement: It’s well-known that recognition is the leading driver of employee engagement. With more peer-to-peer recognition, employees feel motivated to produce better business outcomes, deliver better customer service experiences, and uphold a positive workplace culture.
Boosts profits and ROI: Gallup research shows that companies with highly engaged workforces have a 21 percent increase in profitability and a 1 percent increase in engagement leads to an additional 6 percent growth in sales. Employee recognition can have dramatic effects on employee wellness, happiness, and, therefore, output. Harvard Business Review purports that when a program was implemented in which workers’ strengths are recognized by managers, it resulted in happier workers and a 14 to 29 percent increase in profits.
Empowers managers and leaders: Employees look to their managers to set the tone of their work relationship. As many as 58 percent of employees report that their manager relationship would improve with more recognition. Peer-to-peer recognition empowers managers to see how their teams are working together and to have opportunities to build stronger, high-quality teams. If peer-to-peer recognition is low, managers can step in and figure out a way to boost employee morale. When peer-to-peer recognition is high, managers can celebrate their team’s wins and continue building on positive team culture.
Decreases employee turnover: Disturbingly, 64 percent of employees say they may leave their jobs. Why? One of the top reasons is a “lack of recognition” (19 percent). Retention has been an ongoing issue for employers, so building a culture where peers feel appreciated is paramount.

peer-to-peer recognition

What is an example of peer recognition?

Here are some examples of peer recognition tactics:

Employee spotlights for recognized employees
Points-based recognition programs with;
Social and monetary recognition options
Public recognitions on productivity tools like Microsoft Teams
Social media shoutouts
Free lunch or coffee for recognized individuals or teams
Certificates or awards

How do you acknowledge your peers?

Acknowledging your peers for a job well done can be as simple as saying thank you. To truly make someone feel appreciated, you can:

Verbalize your appreciation for their help
Make thank yous public to all employees through shared social channels
Write a recognition that is shared through the company’s recognition program platform
Listen to their concerns and challenges
Ask and be interested in the lives of your peers

What are the objectives of peer-to-peer recognition?

The objectives of peer-to-peer recognition is to:

Boost team morale
Enhance engagement
Increase productivity
Improve customer service
Decrease absenteeism

The ultimate goal of affecting each of these areas is to have a dramatic positive impact on the business’ bottom line.

What is the psychology behind peer recognition?

When peers recognize one another, they work better together and are happier. It has been shown to build trust across teams and bond them together. From a scientific standpoint, this behavior releases oxytocin in the brain, producing feelings of reward and motivation.

What are peer-to-peer recognition platforms?

A peer-to-peer recognition platform is a system through which employees and managers can acknowledge the achievements of their coworkers or team members, or send thank-yous for their efforts and contributions. These programs often tie recognitions to specific behaviors and actions desired by the organization in order to reinforce them.

Peer-to-Peer Recognition Best Practices

Peer-to-peer recognition best practices and ideas

There are clear advantages to peer-to-peer recognition, but it can be daunting to get started. Here are ways to build an effective peer recognition program in your organization.

1. Have a recognition program in place

It’s time to start building a business case for a recognition program that includes peer-to-peer recognition — and it has to be fun, easy for employees to use, and accessible.

Employees who report that they are never recognized are 39% more likely to say they will job hunt. For employers, this should be a driver to encourage more frequent recognition across the organization.

Recognition platforms that promote your company values, give users the opportunity to send real-time, public recognition from anywhere, and provide access to program data and insights are particularly valuable.

Since CHRISTUS Health rolled out their recognition program with Achievers, 90 percent of associates have been activated in the program, with more than half sending a peer-to-peer recognition each month.

Discover how to build a successful employee recognition program.

2. Use a single employee recognition platform

An important aspect of a recognition platform is its ability to integrate with other systems such as Workday, Microsoft Outlook, and more to reduce administrative demands on HR, increase employee productivity, and create a seamless user experience. It’s also especially helpful for companies looking to combine several recognition programs into one global program and platform. Learn how having a single platform helped Power Design Inc. reach all employees and scale along with their business, with 89 percent of Power Design’s employees were active on the platform, and 70 percent of employees log in at least once a month.

A truly great recognition platform increases adoption by more than 80 percent. But, the right platform will only get you so far—you have to actively encourage its ongoing use and adoption. A common misstep is companies put in the work to get budget spend for a program but then don’t follow up on a success strategy after its launch. Without a dedicated owner to encourage ongoing use and adoption, the platform will eventually become a ghost town.

3. Ensure recognition is inclusive

Everyone should have the chance to give and receive recognition. Surprisingly, in companies that have effective recognition practices, only 34 percent give recognition that is inclusive. Having an inclusive culture develops trust and a sense of connection and belonging among employees.

Program participation should be voluntary, as mandatory recognition feels disingenuous Even small acts of recognition can create a multiplier effect because what gets recognized gets repeated. Remember to empower your employees to recognize another and offer them the freedom to send customized recognitions anytime, anywhere.

Access four must-know tips on how to boost community with recognition.

4. Give public recognition

Make sure that you leverage a platform that enables public recognition, like a company-wide newsfeed. Public recognition offers a special spotlight on employees that private recognition simply can’t deliver on. Peers can easily stay updated on recognitions sent in real-time and can “like”, comment, or boost (aka the ability to reward points) recognitions. Recognizing people publicly encourages recipients to participate and emulate exemplary behavior.

Meijer grocery store chain uses a public recognition platform to reinforce a culture of peer-to-peer recognition. One of their Customer Service Team Members, Carol Anderson, says that she “loves giving a recognition on team because I love paying it forward.”

Meijer leverages peer-to-peer recognition to drive business success.

Since launching their platform, Meijer has had over 10 million recognition moments, and individual users on team are receiving an average of 7.7 recognitions each month. Today, every Meijer user receives an average of 7.7 recognitions each month

“The best stat of all is that 92 percent of our total population, over 70,000 team members, have received a recognition.” – Michael Rotelle, SVP of Human Resources, Meijer

5. Practice frequent recognition

Currently, only 25 percent of companies are giving recognition frequently. Frequency of recognition matters. To truly build a culture of recognition, recognition must be frequent and given in real-time. If you wait too long to send a recognition, it can lose meaning to the recipient.

According to Brandon Hall Group’s Pulse Survey, organizations that rate their culture of recognition highly are 2.25 times more likely to give frequent recognition. In addition, overall engagement is expected to go up five percentage points every time companies double the number of recognitions in their organization.

General Motors (GM) is an example of a company that practices frequent recognition. Due to their emphasis on frequent peer-to-peer recognition, their platform achieved a 97 percent activation rate. Moreover, 7 out of 10 employees are active in the program monthly, and every employee receives at least 1 recognition per month. Even more impressive, leaders at GM send an average of 4 recognitions per month.

6. Be specific when sending recognition

Peer-to-peer recognition is best when it’s specific. When training staff recognition best practices, urge them to explain what their peers did in detail. Be specific when describing the desired behavior and personalize your message. The last thing an employee wants is to receive the same thank you message that was given to hundreds of other people. Further, the recognition should tie back to a specific company value so employees can easily see the connection between their action and your company’s values. Descriptive recognitions deliver results. If recognized, 92 percent of employees will repeat their behavior and 90 percent of employees will be motivated to work harder.

7. Encourage leadership to model peer-to-peer recognition

When leaders model desired behavior, employees are more likely to follow suit. Too often, managers exclusively focus on helping their team figure out what to do next. People in upper level roles should lead by example, recognizing team success and taking pride in the team’s work.

It’s shocking that only one in three organizations train employees in how, when, and why to recognize their peers. Moreover, only half of those organizations report that they offer recognition training to managers. Practices should flow from the “top-down”, so train your managers to give meaningful recognition in real-time and on a frequent basis. Start teaching managers the value of recognition and how they are expected to participate in leadership training sessions. Also consider adding one-click recognitions so leaders simply can’t use the excuse that they’re “too busy” to recognize employees.

Below are a few examples of companies that are leading by example when it comes to leadership recognition.

Bill Gosling Outsourcing is a great example when it comes to having c-suite leaders encourage peer-to-peer recognition and lead by example. CEO David Rae was featured in a thank you video message that was shared across their social media platforms during Employee Appreciation Week. As a result, total unique recognitions skyrocketed by 619.6 percent.
Availity, the nation’s largest real-time health information network trains their managers effectively. During their recognition and rewards platform rollout, they encouraged senior leadership to participate and now leadership participation is at 100 percent.
Bayhealth’s executive team made it a priority to lead by example when they introduced their recognition platform. Post-launch, 97 percent of Bayhealth’s leaders are active in the recognition program, Driven, at least one a month. This activity had a direct impact on the Bayhealth workforce—98 percent of employees activated their Driven account. Today, 84 percent of employees use Driven on a monthly basis, and Bayhealth’s employee engagement scores went up 0.11 points in the first year alone to 3.79 (on a scale of 1 to 5).

8. Leverage social and monetary recognition

Employees who feel recognized are more likely to promote their employer’s brand, contribute to company-wide goals, and go above and beyond their daily responsibilities. Social recognition is a must-have when it comes to making employees feel appreciated. One social recognition a month increased employee engagement 43 percent. Additionally, an Aptitude Research Partners study showed that companies that invested in social recognition doubled individual employee performances and NPS scores, and saw a 4x improvement in stock prices.

It’s also important to leverage points-based recognition. Employees use points to recognize their peers, then can redeem them for rewards that are meaningful to them.

Olympus, an innovative technology company, wanted to continue inspiring their incredible talent with a points-based recognition and rewards system. Just one year after implementing their recognition platform, Olympus saw a 100 percent increase in total points-based recognition given. Plus, Olympus saw an increase in positive engagement from 34 to 63 percent, and a 189 percent increase in the number of team members who provided recognition.

9. Celebrate milestones, work anniversaries, and more

It’s obviously important to celebrate work achievements, but major milestones, both personal and professional, should be celebrated too. Consider giving employees digital celebration cards they can use to recognize peers. Team members can sign and customize these cards with a special message of thanks. Birthdays and work anniversaries are also a perfect opportunity for team members to sign a digital card and host a team party. Managers should be recognition champions, coming up with innovative ways to praise employees for hitting big milestones in their life and work.

Many companies incorporate recognition for both professional and personal achievements. For instance, employees should recognize peers who have worked hard to finish college or certificate programs, buy a house, or complete a marathon. Some organizations even host quarterly recognition and rewards meetings to spotlight top performers. Regardless of the recognition method you choose, remember to encourage and empower employees to celebrate each others’ everyday wins and major milestones.

10. Deliver a fun recognition experience

Employees won’t adopt a recognition culture if it’s not fun, easy, and engaging. Allow them to write custom messages, add fun imagery or gifs, like or comment on recognitions sent.

Keeping recognition active and fresh is paramount to a highly adopted recognition and rewards program. Scotiabank used a two-week “Pay it Forward” campaign to generate excitement about their program. The initiative produced a 46 percent increase year-over-year in program activity with 20 percent of all employees sending more than one recognition during the campaign.

Bonus tip: Check out fun campaign ideas that major companies, such as Mercedes-Benz Canada and ESS, ran to boost peer-to-peer recognition activity during Employee Appreciation Week

Making a concerted effort towards designing a recognition experience that employees love will pay off. Organizations that rate their culture of recognition highly are 79 percent more likely to give their employer brand a high rating and 2.5 times more likely to see increased employee engagement.

11. Send individual and team recognitions

Of course it’s important to recognize individuals, but make sure your recognition platform also permits team recognition. This makes for a more inclusive and democratized recognition and rewards environment. If your team has to stay up late for a new product launch, or put countless hours into revamping a sales process, take the time to recognize them. Recognition should encompass teams, business units, locations, and individuals. Practice sending both individual and team recognitions to ensure employees feel appreciated and valued everyday for their efforts.

12. Measure, measure, measure

Metrics to track in your peer-to-peer recognition platform include:

Number of peer recognitions sent and received,
Number of leaders active on the platform
Activation rate
Trends in upticks or losses

Slow activity may indicate that you need to think of more creative ways to get people excited about peer-to-peer recognition, or that the platform isn’t user friendly or fun.

Analyze your data to find correlations between recognition and key business metrics, such as customer satisfaction and retention. Meijer and the research arm of Achievers, The Workforce Institute, collaborated on a data partnership to gather insights on Meijer’s new recognition and rewards program’s direct impact on business objectives.

Employees who stayed at Meijer received significantly higher recognition rates on average than those who left. And employees who chose to leave were receiving statistically identical rates of recognition as those who were asked to leave. Both outcomes show that recognition is an invaluable way to retain valued employees. Recognition also positively affected customer satisfaction. Increasing recognition from twice a month to twice a week yielded a 5 percent increase in customer satisfaction scores.

Peer-to-peer recognition nomination examples

Peer-to-peer recognitions can be informal, but can also be collected through more structured nomination forms. These forms could include such important and relevant information as:

A list of the nominees’ best qualities
The reasons for the nomination
Specification as to what they are being nominated for
Examples of how their work had an impact
The timeline of the work being recognized
The departments, customers, or stakeholder affected
How they inspire or motivate the nominator (or others)

Peer to peer recognition statistics

Peer-to-peer recognition statistics

There are many examples of how peer-to-peer recognition yields positive results for both employees and their organizations. Examples include increased:

Performance: According to Gartner, peer feedback can enhance performance by as much as 14 percent.
Productivity: A study from Harvard Business School found peer recognition can dramatically increase motivation and performance.
Employee engagement: Peer-to-peer recognition makes employees feel motivated to produce better business outcomes.
Profits and ROI: Gallup research shows that companies with highly engaged workforces have a 21 percent increase in profitability and a 1 percent increase in engagement leads to an additional 6 percent growth in sales.
78% of employees said being recognized motivates them in their job

And, peer-to-peer recognition is known to decrease employee turnover — 61 percent of employees say they may leave their jobs, citing a lack of recognition as one of the reasons why.

Get started with peer-to-peer recognition

No matter your industry or company size, peer-to-peer recognition can directly improve employee engagement, productivity, and retention. Often, the daily activities that keep your company afloat go unnoticed. You can counteract this imbalance by implementing an advanced platform that allows for fun, easy, and real-time employee recognition.

Achievers Recognize supports every step of the rewards process, from recognition, to approval, to reward redemption. In fact, HRO Today’s Baker’s Dozen Customer Satisfaction Ratings for Recognition identified Achievers as a top provider based on customer satisfaction surveys in the categories of service breadth, deal sizes, and quality of service. Achievers customers are 3.6 times more likely than customers of other providers to give recognition multiple times each month. Our customers are also 107 percent more likely to give their culture of recognition a high rating than organizations that don’t use recognition technology.

Request a live demo of Achievers Recognize today!