A common purpose drives teamwork, which builds trust, collaboration, and innovation. When teams work closely together and are empowered to recognize one another’s achievements, that gratitude permeates culture and boosts employee engagement.
1. Peer Recognition Improves Performance
Many organizations are considering employee engagement impact when it comes to annual performance reviews. Many have found that incorporating peer recognition boosts performance results when compared to traditional reviews. Employees work more closely with peers and teams and are better able to provide detailed feedback. According to a 2018 SHRM report, 76% of HR professionals agree that annual performance reviews are more accurate when coupled with ongoing peer feedback. Additionally, of the 29% of HR professionals whose organizations use peer feedback, 89% reported it having a very positive or somewhat positive impact on their organization.
2. Peer Recognition Boosts Employee Engagement
Recognition and kudos among teams and peers decentralizes the act of praise. As opposed to traditional, top-down recognition, peers give each other the power of trust, inclusion, and overall satisfaction. A culture of inclusive gratitude makes employees feel happy and energized to do their best at work.
3. Peer Recognition Improves Culture
While traditional, top-down recognition is effective, it’s important to remember Maslow’s hierarchy of needs when considering peer recognition. Just behind self-actualization, two of the most important human needs are a sense of achievement and a sense of belonging. Peer-to-peer recognition not only allows employees to receive a sense of accomplishment from peers and delivers the same power to give to others, but it also creates unity and belonging. A culture of recognition in a workplace reinforces company values and drives a sense of community.
Download: How Employee Recognition Influences Attitude & Behavior in the Workplace