Companies with highly engaged employees have significantly higher productivity, profitability, and customer service ratings, lower turnover and absenteeism, and fewer safety incidents.
Employee engagement is a critical factor in productivity and retention. Gallup has found that disengaged employees cost the US economy at least $450 billion annually in lost productivity.
Peer-to-peer recognition programs allow employees to participate in rewarding their colleagues. Read on to learn how these programs can help you increase motivation levels, productivity, and retention.
Peer-to-Peer Recognition Benefits
Peer-to-peer recognition uses employee feedback to recognize and reward workers. It sets the perfect foundation for a more compassionate, collaborative workplace environment.
When employees’ output, skills, and talent are recognized by their colleagues, they feel appreciated and respected. In addition, peer recognition can help increase their confidence and sense of belonging to the team and company.
- Reinforces Company Culture
Company culture refers to an organization’s shared values, attitudes, goals, and practices. Ideally, company culture should help employees feel good about their job and the company. In turn, this helps increase productivity and collaboration and reduces turnover.
Peer-to-peer recognition can help strengthen connections among employees, thus influencing how they view and treat each other. By adopting such an approach, you’ll also be reinforcing a positive, inclusive, and encouraging company culture.
- Enhances Team Morale
Morale and engagement measure how employees feel about their place in the company and their work. Multiple studies show a direct link between morale and productivity.
One of the best ways to raise individual and collective morale is by strengthening working relationships. This can be achieved through a peer-to-peer recognition program that gives team members a foundation to recognize outstanding work and extend appreciation and encouragement to each other daily.
- Creates a Cycle of Recognition
Recognition has various benefits to the individual, workforce, and company. Once an employee receives recognition from a colleague through a peer-to-peer program, they’ll be more likely to notice and appreciate the efforts of others. This “snowball effect” creates a continuous cycle of recognition.
- Improves Performance
What happens when employees have a greater sense of belonging, confidence, morale, and engagement? If you said increased productivity, you’re right. When people know their efforts are being noticed and appreciated, they want to work harder to help their team and company succeed.
According to Gallup, increasing engagement has a significant positive impact on company productivity and profitability.
- Greater Trust
Trust is necessary for an organization to achieve its objectives and enjoy consistent growth. However, trust can be a scarce commodity because of unhealthy competitive mindsets between employees. The situation is often worse regarding trust between management and the workforce. Peer-to-peer recognition can help improve trust, first between individuals and then spreading to teams.
- Increases Organizational Fit
Beyond skill sets and accreditation, employees must have the right cultural fit to avoid sowing discord in the workplace. Along with strategic recruitment, achieving organizational fit may require improving the fit of current employees. Fortunately, employees are more likely to agree they’re an organizational fit if they’ve been recognized recently.
- Improves Employee Relationships
Employees facilitate production, sales, service delivery, etc. While each employee has individual responsibilities, their roles are intertwined and reliant on each other. For different departments, teams, and individuals to work together, relationships need to be strong with a unified goal and desire to see the company prosper.
One of the best ways of lowering a person’s “guard” is to compliment them. Peer-to-peer recognition allows employees to do so with ease. As they recognize each other’s efforts, relationships strengthen.
- Promotes Transparency
By design, peer-to-peer recognition programs are transparent. When employees recognize colleagues, what they say is usually visible for all to see. This shout-out ensures that recognition is for justified reasons.
- Supports Diversity, Equality, and Inclusion Efforts
Diversity, equality, and inclusion (DEI) is an essential topics within companies. Having divergent views, personalities, and skill sets in the workforce is vitally important, but ensuring everyone feels a sense of belonging can be challenging. Employees support the company’s DEI efforts when they recognize colleagues for their unique skill sets and accomplishments.
- Empowers Management and Team Leaders
A manager’s primary responsibility is ensuring that the teams and employees working under them are performing as expected. They set the tone for working relationships and ensure working conditions are conducive to achieving goals. When teams experience high levels of peer-to-peer recognition, managers know that morale and engagement are also high. On the other hand, if praise is low, there’s a problem within the workforce that needs to be addressed.
- Reduces Employee Turnover
For good reasons, the competition to attract and retain high-quality talent has risen significantly in recent years. According to the U.S. Bureau of Labor Statistics (BLS), American workers quit their jobs more than 106 million times between March 2020 and July 2022 – the “Great Resignation” – with over four million resigning in July 2022 alone.
Beyond high salaries and paid time off (PTO), employees today value working conditions that improve their overall well-being and allow them to grow. Forbes found that employees want to work with a purpose and feel appreciated and recognized.
- Reduces Reliance on Management
Ordinarily, managers are the driving force behind employee appreciation, engagement, and collaboration, but they drop the ball sometimes. Another high-value benefit of peer-to-peer recognition is that it helps teams become more self-sufficient. Employees have a more significant, albeit indirect, role in improving engagement and morale. All management has to do is set the pace and monitor the progress.
- Reduces Hierarchy Perceptions
A company’s organizational structure, from the executive board to the lowest-ranked employee, influences its ability to succeed. However, this structure can create the perception of a hierarchy. Peer-to-peer recognition helps removes the sense of hierarchy. As employees recognize each other’s efforts across all organizational levels, relations and trust between different levels improve.
- Improves Customer Satisfaction
It’s easy to view customer satisfaction efforts simply as attempts to please consumers, but they have significant business value. For starters, 86% of buyers are willing to pay a higher price for a great customer experience, but one bad experience is enough for one in three customers to leave a brand they love.
After implementing a peer-to-peer recognition program, employees are usually much happier and more eager to perform their roles. Customers feel this positivity.
Unlock Your Team’s Potential
It’s easy to assume that salary and job perks are enough to motivate and keep employees focused on their job. However, humans are social beings. Employee interactions with colleagues influence their performance.
Xceleration can help you build a culture of recognition that propels your company forward and provides an attractive return on your recognition investment. Instead of leaving such things to chance, take the proactive step and turn to a highly experienced peer-to-peer recognition partner. Contact us today to learn how to unlock your team’s potential with our peer-to-peer recognition programs.