What is peer recognition?

Peer-to-peer recognition happens when one employee recognizes a coworker’s positive traits, efforts or accomplishments. This type of lateral appreciation, also called social recognition, can happen between employees within the same team or in different departments.

Peer recognition may happen naturally in businesses with a strong, supportive culture. You can also encourage the practice by creating a formal program.

Benefits of peer recognition

Building a peer recognition program requires commitment from company leaders. Consider highlighting some benefits of lateral appreciation:

• Improved work environment: When employees regularly acknowledge one another, they help create a better work environment. A strong, positive company culture can encourage collaboration and teamwork, potentially boosting productivity and employee retention.
• Better employee performance: Knowing their teammates appreciate their work can inspire your employees to work harder and produce better results.
• Regular recognition: Empowering employees to recognize each other can result in more expressions of appreciation.
• Higher job satisfaction: Regular recognition can boost your employees’ self-confidence and may lead to higher job satisfaction.
• Cross-team collaboration: A peer recognition program may encourage employees to participate with other teams, promoting unity and appreciation throughout your organization.
• Faster feedback: Peer-to-peer recognition is often spontaneous and genuine. Immediate feedback may reinforce positive behaviors.
• Reduced competition: Because peer recognition is lateral, it encourages employees to support each other.
• Better understanding of expectations: Employees typically understand their colleagues’ jobs and what it takes to excel, helping them recognize when to offer meaningful praise.
• Less emphasis on hierarchy: Peer recognition can help create a more relaxed organizational structure where everyone feels valued and equal. When everyone has the power to praise fellow employees, it can empower employees regardless of hierarchical levels.

Potential drawbacks of peer-to-peer recognition

As with most corporate initiatives, peer recognition strategies can involve several drawbacks:

• Less importance: It may help pairing a peer program with manager-led recognition to show peer praise is as valuable as recognition from leadership.
• Lack of consistency: Not all employees may participate in peer recognition. You can increase participation by providing guidance and incentives.

Peer recognition vs. top-down recognition

Peer recognition involves lateral appreciation. Top-down recognition means a manager or supervisor acknowledges an employee’s efforts or achievements. It can range from informal praise to formal awards or bonuses celebrating success.

Peer and top-down recognition can be effective. Peer-to-peer acknowledgment can help build a sense of camaraderie, while top-down appreciation can feel more meaningful to employees.

Encouraging peer acknowledgments

To amplify social recognition, consider creating a system that makes employee participation easy. For example, you could set up an online platform for sending digital thank-you notes or give everyone a gift card to hand out each quarter.

Things to consider when choosing a peer recognition format may include:

• Budget: Recognition methods often require a nominal investment. You may need to purchase prizes or stationery for notes of appreciation.
• Time commitment: Many formal recognition systems require administrative work. Most employees already have a full workload, so it’s important to research time requirements before deciding.
• Employee preferences: Consider which recognition methods resonate with your employees, and offer several options. A program that accounts for employees’ preferences may be more likely to succeed.
• Goals: Identify what you want to achieve with a peer recognition program. If your goal is to create a fun environment, a traveling trophy may be a good option. If you want to help remote employees connect, a Slack “thank you” channel may be convenient.

Consider involving employees in the decision. A sense of ownership can turn them into advocates, which can spread excitement throughout your organization.

Online vs. offline programs

Peer recognition can take place offline or online. Informal praise tends to happen offline in casual conversations or written notes. This option is traditional, personal and affordable.

An online recognition platform offers a ready-to-use solution for spreading praise among your employees. These programs often connect to multiple data sources, including peer reviews and feedback. Some services enable employees to comment on feedback or earn rewards for each note of appreciation.

Types of peer recognition

Peer-to-peer recognition can come in many forms.

1. Verbal acknowledgment

Verbal recognition is a quick, informal way for employees to acknowledge each other. Face-to-face communication is highly personal, which can help foster positive relationships between coworkers. To encourage verbal praise, speak up when you notice an employee exceeding expectations, achieving new goals or brainstorming innovative ideas.

2. Handwritten notes

Written notes, cards and letters can be a powerful form of recognition—employees can display them in their workspaces as a positive reminder. Keep cards or decorative pieces of paper on hand to make note-writing easier.

Related: Employee Recognition Letters (With Downloadable Templates)

3. Meeting shout-outs

Set aside time in meetings for employees to praise their colleagues. Public recognition can validate employees and provide an opportunity to celebrate each other.

4. Social media recognition

If you want to share peer-to-peer recognition beyond the office walls, consider implementing social media recognition. Employees can submit their praise to be posted on your company’s social media accounts. It’s a fun way to showcase your positive culture and show customers what’s happening internally.

5. Department-to-department recognition

Encourage departments to recognize one another to spread positivity throughout the company.

6. Collaboration or communication software channels

If you use a collaboration or communication tool such as Slack, set up an area to support peer-to-peer recognition. Everyone who uses the tool can see the praise—and when one person recognizes an employee, it might encourage others to share similar experiences. This option can be particularly beneficial if you run a remote company.

7. Online recognition platforms

Consider integrating peer recognition into your company’s online performance program so employees can use the online features to leave positive notes. If you’re looking for a new program, consider programs that allow employee submissions.

Related: 14 Employee Recognition Software Tools for 2024

8. Bulletin board posts

Create a recognition bulletin board, and set up a stack of note cards, markers and decorative stickers. Employees can write praise and post it on the board for everyone to see. You can keep it fresh by decorating the board with a monthly theme. Large companies may have a bulletin board for every department.

9. Nominations for awards

Incorporate peer recognition into your existing appreciation program by asking employees to nominate others for awards or prizes. You can establish multiple awards, such as an employee-of-the-month award, a productivity award, a teamwork award and an exemplary performance award. List the criteria for each, and create nomination forms for employees.

Ask an awards committee to review the nominees and choose the winner. To promote recognition, give the nomination forms to all recipients.

10. Traveling trophy

Create a lighthearted competition that encourages lateral recognition with a traveling trophy passed among employees. To make one, buy a simple trophy from a party store or an object representing your organization. For example, an exercise equipment company might use a small dumbbell.

Award the trophy to an employee. When they’re ready, they can pass it on to a colleague.

11. Rewards currency

You might not have the budget to fund employee-led bonuses, but you can create an internal currency. You might print branded faux money, and give employees a set amount to pass out. Another option is to use an online rewards system, where employees can reward points to each other and send personalized messages.

Examples of prizes that employees can buy with their rewards dollars include company swag, gift cards, a close parking spot or an hour of paid time off. You can also offer team rewards where workers pool their currency to earn a group prize. Some online rewards programs have options to purchase prizes like household items or accessories with the points they have earned.

Related: How to Use Recognition and Rewards to Motivate Employees

12. Video recognition

Encourage employees to make short videos explaining why they appreciate their coworkers. This can add a personal touch, especially for remote and hybrid teams.

Best practices for peer recognition

Consider the following when building a peer recognition program.

Write a policy

Set expectations for a peer-to-peer recognition program by writing a policy to govern it. Include the plan’s details, such as the recognition options and how to acknowledge peers. You can also include peer-to-peer recognition examples to inspire your employees. Add the text to the policies and procedures section in the employee handbook.

Make it simple

Simple, fast recognition tends to encourage higher participation. Make sure the information and instructions are easily accessible, and create a streamlined process for submitting items.

Promote the program

Promote your recognition internally during the days leading up to the launch. You can send an announcement email, ask managers to discuss it in team meetings and host quick training sessions to explain the process.

Keep it voluntary

Social recognition is typically most effective when given voluntarily. Ask employees for feedback, and make changes as needed to ensure the process works for team members.

Set an example

Set an example at the managerial and executive level by asking company leaders to participate in the peer recognition program. When employees see involvement from supervisors, they may be more inclined to participate.

Encourage employees to be specific

Train your staff to be specific when giving peer recognition—detailed feedback helps show employees what they’re doing well. It’s helpful to include a few examples on your intranet site or recognition platform to serve as inspiration.

A colleague could praise the way the person solved a key problem rather than complimenting their overall work performance.

Support various types of recognition

High performance is often cause for praise, but it can also be important to recognize other efforts:

• Supporting other colleagues
• Promoting company values
• Facing adversity with a positive attitude
• Helping resolve conflict
• Caring for clients

Your employees can even celebrate each other’s personal accomplishments. This could include meeting a goal, achieving a health milestone or getting to a special anniversary. Calling out non-work achievements can support team building.

Use metrics

Monitoring your peer recognition program can help you improve it. Where possible, measure participation levels and individual recognition activities. Surveys can also help you track employee satisfaction, morale and other factors. Note areas for improvement, and make changes accordingly to make the program more impactful.

Frequently asked questions about peer recognition

What is an example of a peer recognition message?

When you’re recognizing a peer, keep your feedback genuine and concise. Focus on how the colleague’s actions benefited the company.

For example: “I appreciate how you jumped in to help me with our last customer. He really responded to your calm energy and left the meeting satisfied with our service.”

What are some peer recognition platforms?

Platforms that offer peer-recognition tools include Bonusly, Nectar and Guusto. They come with online nominations, public recognition feeds and rewards programs.