In recent years, companies have increasingly focused on gaining a deeper understanding of the reasons that affect employee turnover. In the process, they are beginning to uncover the importance of creating a positive work environment.
As research continues, they are learning that one of the more critical factors in employee retention is whether or not an employee feels appreciated and recognized for their work. An article from Forbes cites a study that reports “66% of employees say they would ‘likely leave their job if they didn’t feel appreciated.’” This number jumps to 76% in millennials.
The data shows that workplace appreciation is one of the key factors in improving employee retention. As your company seeks to implement an employee recognition program, it is essential to note that the program should not be limited to managers and employees but should also include peer recognition.
What is Peer-to-Peer Recognition
Peer-to-peer recognition, or “social recognition,” is the genuine expression of appreciation from one peer to another. When a peer expresses gratitude for their colleague’s talents, help, work ethic, attitude, or other contributions, whether done publicly or privately, that is peer recognition.
Traditionally, employee recognition focused on complimenting from the top down (leader to employee). While this is an integral part of building a healthy company culture, top-down appreciation reinforces a power dynamic. In contrast, peer-to-peer recognition builds social relationships among colleagues.
As the younger generations emphasize the opinions of their peers more than other generations, an effective peer recognition program is becoming increasingly essential to overall job satisfaction.
Why is Peer-to-Peer Recognition Important?
William James said, “The deepest principle of human nature is the craving to be appreciated.” The main reason why peer-to-peer recognition is important is because employees, as humans, want to feel like their efforts matter.
Because peers are some of the people who know them best, their perceptions are some of the best reflections of job performance. As daily interactions between colleagues are reinforced through expressing appreciation and gratitude, team members find themselves more confident in their work and themselves.
As your workforce gains greater job satisfaction and is happier, the organization will see many benefits. These benefits include:
1. Involves the whole team in recognition
As the company creates opportunities for colleagues to express gratitude, the responsibility for recognition shifts. Instead of only being a managerial role, the burden falls on everyone. Therefore, building each other up becomes a cooperative effort, making genuine feedback occur more often.
2. Builds a strong team
Genuine relationships are built upon mutual understanding and connection. While the work naturally creates an understanding of one another’s workload, the job of recognition is to foster connection. As team members point out what others are doing correctly, they show one another that they notice the positive contributions they make to the team.
This cycle of peer recognition reinforces the relationships built among colleagues, therefore deepening the connection and uniting the team.
3. Improves employee retention
Currently, about 76% of millennials report that they would quit due to a lack of recognition.
When employees feel engaged and appreciated, they are far less likely to leave an organization. Based on various employee retention models, the more the employee feels connected to the company, the more they will be willing to stay.
One way to do this is through embedding themselves within the workplace community and fostering relationships with their colleagues. Peer-to-peer recognition is an excellent way for colleagues to build rapport and connection.
Additionally, workplace appreciation cultivates a healthy company culture, which is another factor in an employee’s decision to stay.
3. Increases motivation
According to OGO, “40% of employed Americans say they’d put more energy into their work if they were recognized more often.” These findings demonstrate that with a bit of recognition, 40% of the workforce would be more motivated in their work. With increased motivation, your employees will be more productive, and the overall company culture will benefit.
4. Builds equality
Peer recognition provides the opportunity for everyone to receive appreciation, even the leaders of the organization. As the whole company focuses on complimenting when the chance arises regardless of status in the organization, the power dynamic becomes less top-down and more lateral.
5. Reinforces company values
A peer-to-peer recognition program can promote company values by focusing on recognizing behavior that corresponds with specific values. Whether it is through highlighting a particular value to focus recognition on or centering on all company values guiding peer recognition, these programs can promote desired behavior.
6. Improves productivity
According to Gallup and Workhuman research, “when employees have thriving well-being and are experiencing the best recognition experience possible, they’re more likely to be a top performer and to feel like they’re paid fairly, and are less likely to be actively looking or watching for job opportunities.” In other words, employees with a positive well-being that work within a recognition environment experience greater performance and output over time.
8. Builds trust
Trust develops through connection and continual demonstration that your peers have your back. As colleagues focus on the good that each other is doing, even through the tough days, it shows that the team is there to support them. When employees demonstrate appreciation genuinely and frequently, coworkers will build trust.
9. Creates happier people
When asked how to live a happier life, many psychologists suggest becoming more grateful. Not only does peer-to-peer recognition help someone recognize the good they are doing, but it also trains the brain to see the good that surrounds them.
As employees look for the good in their workplace, they will be happier. Being happier means that they will be more willing to work through the natural struggles of the workday and be more resilient overall.
Additionally, as the workplace is filled with happier people, it will be a more enjoyable place to be. This creates a positive loop of both the environment and employees encouraging workplace happiness.
10. Improves collaboration
Collaboration can be complex because it often means working through disagreement. Therefore, for collaboration to be effective, both parties need to feel safe in expressing their opinions and perspectives.
In a team that continually recognizes and encourages one another, they will naturally build a rapport with one another. This rapport will aid in collaboration efforts as more parties will feel safe to disagree. So, instead of disagreement seeming like a personal attack, they will be able to understand it is only a differing opinion and not a critique of them.
When to use peer-to-peer recognition
In order for a peer-to-peer recognition program to be effective, a company must fully incorporate it into its company culture. To do that, you must fully communicate the objectives, identify etiquette, and provide ample recognition opportunities.
There are various opportunities where you can implement peer-to-peer recognition. These situations include:
- Publicly announcing it during a meeting
- Shouting it out via the company messaging service
- Gathering signatures on an online group thank you card
- Celebrating employee milestones like a birthday or work anniversary
No matter when your organization members decide to show their gratitude, the messages must be genuine, timely, and provide specific details about what they appreciate about their colleagues. Doing so will ensure that the feedback is received as intended and all potential benefits are maximized.
Final thoughts
While improving wages can increase job satisfaction, it is the relationships that the employee builds with the company that make someone feel truly fulfilled in their workplace. Peer-to-peer recognition is one of the easiest but highly effective ways to improve the relationships within your organization. As those relationships improve, many potential organizational issues will also improve.
Create a culture of recognition at your organization
Empower your employees to give shoutouts, celebrate milestones, and more.
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