Source | allthingstalent.org | All Things Talent
Every employee has three basic needs from an organisation, i.e., to be able to do purposeful work, to be aware of the things going on in the company, and to gain recognition for doing a good job. As far as recognition is concerned, companies have placed the entire responsibility of recognizing and appreciating the employees on the managers.
On the contrary, the truth is that today no form of recognition works better than peer-to-peer recognition. Being applauded for one’s work is more of a psychological need, which has lasting positive effects on the overall organisational health and culture. But is peer-to-peer recognition actually so important? The answer is a big YES!
Peer-to-peer recognition is 35% more likely to have a positive impact on the financial results of an organization than manager-only recognition. This data alone is enough to bring to light the positive ripple effect of a peer-to-peer recognition program in an organisation.
Peer-to-Peer Recognition: What is it? Why should you have it?
Let’s dig deeper into what, why, and how a company should go about implementing a peer-to-peer recognition system.
What is Peer-to-Peer Recognition?
Peer-to-Peer recognition is a genuine expression of appreciation between coworkers. According to various studies, it is considered so effective that when an employee is recognised by a peer, he is likely to repeat the behaviour that earned him that recognition.
As an essential tool used to address employee engagement, peer-to-peer recognition has gained momentum owing to factors such as large teams, remote workers, millennial workforce, etc. It is, in fact, one of the most powerful tools to create a collaborative work culture based on employee camaraderie and motivation.
Being recognised by a peer produces a double-dopamine rush, by presenting not only an excellent approach to keep the motivation levels high but also an efficient talent retention strategy for the HR.
Keeping the overall business objectives at the center, the HR department can induce positive work behaviour amongst the employees through a peer-to-peer recognition system.
Why is Peer-to-Peer Recognition Beneficial?
Here’s why peer-to-peer recognition is hugely beneficial for an organisation:
One of the main reasons why people leave an organisation is the lack of appreciation. Peer recognition provides a platform for all employees to adapt a positive attitude towards the company culture. It helps colleagues strengthen their bonds and turn into high-performing teams. It also encourages employees to openly express their gratitude towards each other, thereby boosting their work relationships.
Peer recognition program helps employees go a level deeper and analyze their peers’ strengths and weaknesses. They begin to understand the value of employee differences in a much better way. Also, being recognised by a peer helps boost one’s confidence and self-esteem. A simple ‘good job’ or ‘thank you’ from a peer can help increase an employee’s satisfaction levels tremendously.
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It is human psychology to feel appreciated and valued, and this behaviour does not stop at work. When peers say constructive things to each other, they tend to get along well with each other. Also, employees who have positive relationships at work are likely to be better engaged in their jobs. This further reinforces peer-to-peer recognition and its benefits in the form of reduced employee turnover rates. The HR team assigns a vital metric to this tool in terms of bringing down the turnover rates of an organisation.