Benefits of a Peer-to-Peer Recognition

September 274 mins
Benefits of a Peer-to-Peer Recognition


People tend to perform better when they know that their work is being noticed and carries value. It is human nature to seek approval for our efforts, and appreciation in the workplace can have a major positive impact on the mindset of the employees. While there are multiple ways to instill a healthy office culture, a study conducted by The Boston Consulting Group and The Network with over 200,000 participants concluded that “appreciation for your work” ranked the highest for happiness on the job.

Most companies have an established employee recognition program, but these programs often focus on tenure and service awards. With the advent of online tools and software, a peer-to-peer recognition model can function better than existing recognition models in creating a thriving office culture. Read more about peer-to-peer recognition, its various benefits, and how your company can make the most of it.

What is peer-to-peer recognition?

In layman’s terms, peer-to-peer recognition can be defined as a recognition model that allows employees to appreciate their co-workers’ efforts. Unlike traditional approaches to recognition, peer-to-peer does not have much hierarchical oversight, meaning employees can recognize and award great work as and when it happens without requiring a sign-off from higher management. This builds an effective recognition system that allows employees to display gratitude and get the credit they deserve for their work.

Why is peer-to-peer recognition important?

Research has indicated that peer-to-peer recognition models benefit your bottom line.  SHRM concluded that this recognition model is 36% more likely to yield a positive financial result than other recognition models. Moreover, the benefits of a peer-to-peer recognition model are not limited to financial results and the bottom line. This recognition model can motivate your employees, boost their morale, improve collaboration, and provide various other benefits across various workplace factors.

Peer recognition offers an immediate, specific, and consistent way for your employees to recognize each other’s work. A well-oiled peer recognition model enhances workplace relationships which can increase productivity and create an overall atmosphere that motivates employees to do their best every day.

5 Benefits of peer-to-peer recognition

An effective peer-to-peer recognition model recognizes efforts at the right time(ideally after the task is completed), offers specific praise(explains what part of their work is appreciated), and should be implemented regularly. A peer-to-peer system that does all of these provides the following benefits.

  • Employee engagement

The beauty of peer recognition lies in its self-sufficiency. The management need not be the only ones bearing the weight of ensuring an air of collaboration, cooperation, and appreciation in the company. Employees take the responsibility as well and play their part by actively participating in the peer recognition initiative. This doesn’t say that managers can sit back and relax. They need to take an active role, increasing productivity and creating in the giving and taking credit that the peer recognition system has put into place. By doing so, managers can build a fruitful relationship by gaining the trust of their staff. Using peer-to-peer recognition software makes this even easier since they can praise employees who have gained recognition from their colleagues.      

  • Employee happiness


Peer-to-peer recognition systems spread positivity and gratefulness to employee-employee and employee-manager relationships, helping the entire company build a rapport. Employees who know that their leaders and colleagues appreciate their work perform better at their job. A survey found that a peer recognition system can make 90% of employees more satisfied with their job. 

  • Wellbeing improves

Illness can affect even the best of work cultures, but you can do your part by preventing burnout and stress-related absences. Peer recognition can act like a preventive antidote that helps your staff maintain their happiness. Appreciation gives your employees assurance, and it has been shown to decrease the number of sick days taken by 64%.

  • Relationships strengthen and grow.

Peer-to-peer recognition gives employees a chance to make deep-rooted connections with their whole team based on a foundation made of gratitude that can carry the weight of existing and new relationships. Consistently recognizing the efforts made by your employees lets them know that you are by their side and watching over them. The 2020 Global Culture Report found peer-to-peer recognition to increase the chance of constructive team culture. Nurturing a respectful relationship gives employees a psychological safety bubble that makes teams cooperative. There is a healthy sense of competition among the employees, and they can recognize each other for quality work. 

  • Employees and organizations thrive.

Peer-to-peer recognition systems help your bottom line. They keep your staff striving for excellence while providing them the recognition they deserve for their work. Hardworking employees that share healthy relationships are the foundation of a successful organization.


Most companies know the benefits of employee recognition but are stuck with traditional recognition programs that only consider tenure and service when rewarding staff. Instead of improving the office culture, this can hurt employees’ morale and the company’s bottom line. What kind of recognition system does your company use? Do your employees feel recognized for their efforts? Establish your peer-to-peer recognition system and watch it become a self-sufficient provider of healthier relationships and positive results.

PeerFives is a team collaboration software that utilizes Slack to build strong teams through peer-to-peer recognition. You can also set individual or team challenges that instill healthy competition throughout the organization. The PeerPoints initiative provides a public platform for employees to recognize each other for their efforts and show their appreciation. Visit the link to learn more about PeerFives today!