11 Best Practices for Peer-to-Peer Recognition

Great leaders acknowledge their employees. Outstanding leaders ask themselves what they can do to improve their employee recognition strategies. However, this doesn’t mean that they don’t have blind spots. One of the biggest mistakes we see being made is overlooking the impact of peer-to-peer recognition.

It’s an easy mistake to make. While organizations have been focusing on employee recognition as a tool to attract and retain talent and create engaged workforces, their tactics are often centered around top-down recognition. This isn’t bad. Studies show that receiving appreciation from your boss or from senior leadership is one of the most effective forms of recognition. However, leaving peer-to-peer recognition out of your efforts to recognize employees is a missed opportunity in terms of culture-building, engagement and retention.

Wondering where to start?

Here are 11 best practices for peer-to-peer recognition, along with science-based insights to inform your efforts, and examples and ideas to implement.

What Is Peer-to-Peer Recognition, and Why Is It Important?

Peer-to-peer is a recognition model that allows employees to show appreciation and gratitude for each other’s work in a public setting.

Unlike some approaches to recognition, peer recognition requires very little hierarchical structure and empowers employees to freely recognize the good things they see when they happen, without the need for managerial approval.

It can happen organically through expressions of appreciation or gratitude, or it can take place through programs that encourage peer-to-peer recognition with points and rewards. For instance, Applauz allows organizations to customize their own social platform where employees can support each other with fun posts.

Why is peer-to-peer recognition important? First, it fosters a recognition-rich culture. It’s one thing to have managers prioritize recognition, and it’s another to build an environment where people just want to spread gratitude and acknowledge each other on a daily basis.

When positive behaviors are acknowledged in real-time, people are more likely to want to repeat them. Being generous with appreciation also creates better relationships between coworkers and promotes trust over competition. Job satisfaction naturally increases in such an environment.

All these factors contribute to boosting morale, strengthening team dynamics and fostering collaboration. As a result, companies with peer-to-peer recognition practices may enjoy increased engagement and retention rates and decreased turnover and absenteeism.

Benefits of Peer-to-Peer Recognition

Why is a peer recognition program important? First, it fosters a recognition-rich culture. It’s one thing to have managers prioritize recognition, and it’s another matter entirely to build an environment where people just want to spread gratitude and acknowledge each other daily.

There are many reasons why you’d want to create such a work environment where giving and receiving peer recognition is like second nature for people. Here are a few benefits of peer-to-peer recognition: 

It creates a cycle of giving

When one employee recognizes their fellow team member for a job well done or a considerable contribution to a team task, that employee is then far more likely to go and recognize someone else, and the cycle of recognition and positive feedback carries on. 

This is one of the many reasons why participation in peer recognition programs is typically extremely high.

In fact, a report from The Incentive Research Foundation found that amongst millennials in particular, peer appreciation and being recognized by colleagues was the preferred choice of being appreciated, whilst across all age groups, receiving recognition in private was the least preferred way to be recognized.  

It improves transparency

The peer-to-peer recognition mechanism is transparent by nature, as everyone from within a business can see who has been recognized, what they said, and even what some employees and managers have not said. This even goes as far as including any reward amounts associated with recognitions given if the organization is looking for complete transparency settings. 

This standard of transparency can have a powerful impact on a workforce as well as the overriding company culture.

According to research from the University of Nevada-Lincoln, leaders who demonstrate transparency and positivity are seen as more trustworthy and more effective by their teams. 

It means less dependence on management

Peer recognition is largely self-sufficient. 

While the supervisor/subordinate dynamic is undeniably important, leaders are often not able to grasp the nuances of employee strengths, accomplishments, and challenges.

After all, most employees spend far less time with their bosses than they do with their co-workers, peers, vendors, and more. With a culture of recognition among peers themselves, management doesn’t have to serve as the singular driving force for collaboration, appreciation, or employee engagement.  

However, this doesn’t mean that leaders shouldn’t take part in recognition programs like Applauz to thank their employees. With Applauz’s peer-to-peer recognition platform, extending gratitude to staff is easier than ever for managers and even the C-suite. They have the benefit of initiating recognition like every employee or amplifying others’ recognition activities with shout-outs or rewards. 

It promotes organizational values

Employee recognition programs not only allow appreciation for great performance and outcomes, but they also enable managers to identify, acknowledge, and reward the right behaviors.

When recognition is aligned with company values, actions that reflect those values are reinforced. It’s a powerful way to show employees that good work is valued while empowering them to recognize those same patterns in others and maintain high standards.

When recognition is allowed to flow freely around your workforce—not just controlled and managed from the top to the bottom—a culture shift follows, and every employee feels connected to your company's values and goals.

It creates a collaborative culture

A peer recognition model helps bring teams together by rewarding teamwork and gratitude instead of internal rivalries. If employees remember that extending a helping hand to their co-workers can lead to public recognition, you can bet everyone will be ready to roll up their sleeves and help each other out. 

It’s beyond incentivization, too. A workplace where colleagues feel genuinely connected to and supported by each other transcends business; it feels like a team.

The Science Behind Peer-to-Peer Recognition

Scientists have started to explore the positive effects of peer-to-peer recognition, and their findings are promising. According to the Society for Human Resource Management (SHRM), 57% of HR professionals in companies that introduced peer-to-peer recognition programs reported higher levels of employee engagement versus 46% in other companies.

Peer recognition is also great for successful teamwork. Workplaces that implement a peer recognition system have better odds of motivating employees to spend more time helping each other, revealed a research paper from the University of South Carolina.

Furthermore, another paper exploring the impact of peer recognition on cooperation showed that the presence of a peer-to-peer recognition system “appears to be a primary driver in leading more individuals to help (versus not).”

Finally, a BetterUp study revealed that feelings of belonging in the workplace lead to a 56% increase in job performance, a 50% reduction in turnover risk, and a 75% decrease in employee sick days. Being recognized by your peers helps nurture that crucial sense of belonging.

Examples of Peer-to-Peer Recognition in the Workplace

Now that you understand the importance of including peer-to-peer recognition in your employee appreciation efforts, here are a few examples of what it can look like in action.

• Shout-outs on communication channels: From sharing a kind word about a coworker in a Slack channel to replying to a group email with praise for a teammate, using communication channels to give shout-outs and send messages of appreciation is a great example of peer recognition at work.
• Thank-you notes: Coworkers can also take the time to write thoughtful, personalized thank-you notes to show their appreciation for a teammate’s contribution to a project. Leaving a note on someone’s desk can be a sweet surprise, and it’s a more private form of peer-to-peer appreciation.
• Peer awards: Establishing fun peer-nominated awards within a team, department or company can also be a great way to foster peer-to-peer recognition.
• Spotlight in meetings: Group meetings can provide a platform for peer-to-peer recognition as well, whether you prompt team members to share success stories about each other or allocate a portion of the meeting to spotlight an employee.
• Gratitude walls: Gratitude walls can encourage open and positive communication about each other's contributions. The act of both leaving and receiving a note of appreciation is an instantaneous mood booster at work – and it’s a simple yet impactful peer-to-peer recognition idea.
• Virtual accolades: If your recognition program is hosted on a platform like Applauz, you can use company-wide social platforms to give people accolades such as virtual high-fives, thumbs-ups or custom Applauz Badges.
• Rewards: Peer-to-peer recognition can also involve rewards and incentives, with coworkers giving each other points or another form of currency that can be redeemed for things like gift cards.

• Trophies: There’s something exciting about receiving a trophy—it’s a fun, tangible symbol of team members’ hard work and the appreciation of their peers. It can be an actual trophy or something symbolic that is awarded on a rotating basis to an employee who did something noteworthy. 

• Peer Appreciation Days: While Employee Appreciation Day might spotlight individual achievements from a top-down standpoint, Peer Appreciation Day flips the script, celebrating the everyday contributions and support that co-workers offer one another.  
• Social Media Shoutouts: A quick post highlighting employees’ outstanding work can make them feel like rock stars and show the world that your brand truly cares. Not only will the team members be excited and grateful for the recognition, but your customers will also see you as a company that values its people and has a heart. 
• Skill Swap Sessions: Skill swap sessions are a brilliant way to deepen appreciation among employees by giving everyone a peek into the complexities and challenges their colleagues face. When team members swap skills, they step into each other's shoes and gain firsthand experience of the hard work and expertise that goes into different roles. 

11 Best Practices for Peer-to-Peer Recognition

If you’re ready to implement some of these ideas, here are 11 best practices for peer-to-peer recognition that can inform your own unique strategies and needs.

1. Foster a Culture of Appreciation

   The number one thing to aim for when creating any type of recognition program is fostering a culture of appreciation. You want employee recognition to become so ingrained in your culture that people do it automatically. The same can be said about peer recognition. When your employees start recognizing each other without thinking about it, you’ll have reached your goal.

   Wondering how to go about fostering such an environment? Celebrating recognition efforts is part of it. Also, discuss the importance of peer recognition openly and emphasize how it contributes to a positive workplace. Finally, consider tying peer recognition to existing habits and rituals so it can become a habit too. For example, start your Mondays with a team gratitude circle.

2. Create Systems for Timely and Specific Peer Recognition

   Did you know that waiting too long to share recognition after a positive behavior occurred can make the expression of appreciation seem less genuine? The same can be said about vagueness. When acknowledgements seem templatized, they are less likely to be perceived as authentic.

   Creating systems for timely and specific peer recognition is therefore crucial. Build processes that make personal and frequent forms of peer recognition easy to dish out.

3. Use a 360-Degree Employee Recognition Platform

   Finding the right tech to enable your peer recognition strategy is key for a few reasons. First, peer recognition is just one aspect of employee recognition. To build new habits, host all your recognition efforts in one place.

   A comprehensive platform like Applauz also provides you with the flexibility to fully adapt your recognition strategy to your needs, including your peer-to-peer recognition processes. This matters even more as your organization evolves – you want your systems to be able to grow with you. Finally, with a 360-degree employee recognition tool, you’ll be able to access precious data that can be used to identify trends and areas of improvement.

4. Establish Easy-to-Understand Recognition Criteria

   To encourage employees to give each other effective praise and ensure consistency and fairness, establish easy-to-understand recognition criteria. According to Applauz, there are six main reasons to give employees recognition:

   1. Achieving a goal or reaching outstanding results
   2. Delivering quality work
   3. Contributing new ideas or displaying initiative
   4. Accomplishing personal milestones
   5. Showing significant progress on a project or assignment
   6. Using soft skills as an asset

   Educating your team on these reasons to dish out compliments is a great way to make sure people have plenty of opportunities to recognize each other while knowing just what to focus on. It removes ambiguity from the equation.

5. Teach Your Team to Give Personal and Meaningful Recognition

   Additionally, emphasize the importance of giving personal and meaningful praise and make sure your employee recognition platform facilitates this as well.

   What makes a teammate great? What particular traits and skills help them excel at work? What kind of unique contributions and knowledge do they bring to the table? These are things to highlight in a peer-to-peer recognition message, so train your team to recognize each other effectively.

6. Lead By Example

   Leading by example is one of the most effective ways to cultivate new habits in your team. Be generous with your expressions of appreciation and make sure they align with the criteria you’ve established.

   Be visible on employee recognition platforms and use the features you want people to use. Furthermore, don’t just give recognition to people who report to you – demonstrate the power of peer recognition by acknowledging fellow leaders publicly.

7. Keep Peer-to-Peer Recognition Efforts Varied

   Have you heard of “love languages”? They refer to individual preferences in the way you feel loved and tend to show love. Feeling valued at work is not that different.

   Some people appreciate private forms of appreciation, while others love being acknowledged in front of others. Some employees are motivated by bonuses and rewards, while others want to feel a sense of purpose in the workplace.

   Keep peer-to-peer recognition opportunities varied to make sure everyone ends up benefiting from them. Create systems on multiple channels and implement processes that allow for both private and public forms of recognition.

   Incorporate rewards in your employee recognition program and make sure the rewards are actually appealing to team members. Ask for employees’ input when building your program to gain a better idea of what matters the most to them.

8. Leverage Rewards and Incentives

   To make the most of rewards and incentives, provide a diverse range of perks to cater to individual preferences. From monetary incentives and gift cards to extra time off or even opportunities for skill development, offer employees the chance to earn things they truly care about.

   Establishing a tiered system can also be useful, where different levels of peer recognition correspond to different rewards. This can motivate employees to strive for high performance and increase participation levels in the peer recognition program.

   Whatever you do, maintain transparency so that everyone knows what it takes to give and receive rewards.

9. Encourage Participation and Inclusivity

   To encourage participation and inclusivity, peer recognition should feel fun. Why not turn it into a game with interactive elements? Tools like Applauz allow you to get playful with peer-to-peer appreciation initiatives, and they make peer recognition efforts more visible so that everyone can get a chance to be included.

   Leverage features like a point system, badges, or other rewards and tie them to peer recognition. This will motivate employees to actively participate in the recognition process and also introduce a sense of friendly competition around peer recognition.

10. Host Peer-Driven Recognition Awards

    Peer-to-peer recognition needs to be frequent to be effective, but there’s also value to hosting peer-driven recognition awards.

    Whether you have employees vote for an employee of the month or determine yearly winners across various categories, a peer-driven award celebration can be an impactful ritual for promoting organizational values. It also enhances your brand as an employer and boosts collaboration.

11. Always Keep Peer-to-Peer Recognition Voluntary

    Once you’ve implemented processes around peer-to-peer recognition, let employees use them on a voluntary basis. Nothing kills authenticity faster than forced compliance – and authenticity is crucial to harnessing the power of peer appreciation.

    When team members have the freedom to acknowledge each other in a way that feels natural to them, they are more likely to participate and wholeheartedly embrace a genuine culture of appreciation.

Take the First Step Toward a Peer Recognition Program.

Businesses typically rely on recognition to flow downward, entrusting executives and the C-suite with the responsibility of acknowledging and appreciating their team members’ contributions. But when leaders are the only ones doling out recognition, certain key efforts tend to go unnoticed.

This is when peer recognition comes into play.

From increasing collaboration to improving morale, it's a wonderful complement to top-down employee appreciation. Though peer recognition programs have traditionally been viewed as a ‘nice to have’ rather than a ‘need to have,’ the times are changing. It’s becoming apparent that without consistent and frequent employee recognition, an organization’s health is jeopardized — from poor onboarding experiences and high turnover to low employee engagement and more. Your business is as strong as its teams. 

Adopt the best practices above and you’ll notice the positive impact on both culture and employee performance. 

Providing a platform for employees to thank each other for their work and support is a great way to foster a warm, healthy, and team-spirited company culture. Applauz’s peer recognition software empowers workers to appreciate each other with valuable rewards that they will love. You can set metrics, reduce manual work, and allow your employees to redeem their rewards in the easiest way possible. You can create something for everyone—from company-branded swag and one-of-a-kind experiences to gift cards, charitable donations, and a point-to-reward pathway.

Contact us today and see your company reap the substantial benefits of a proven employee recognition platform.