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Peer-to-Peer or Manager Recognition – which works better?

The two most commonly used methods of employee recognition are Peer-to-Peer Recognition and Manager Recognition. However, there is always a constant debate on which of these two methods is more effective for an organization.

What is Peer-to-Peer Recognition?

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As the name suggests, peer-to-peer recognition is the method of recognition, where the employees are appreciated by their co-workers for their effort, contribution and support towards business growth.

Despite being a relatively new tool for appreciating employees, it is becoming increasingly popular across organizations as a very effective method of recognition for boosting employee engagement and motivation.

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This is because it is based on a relatively unbiased assessment of the employee’s performance and behavior by those, who work with them regularly.

This lends greater credibility to this employee recognition strategy in the eyes of the entire workforce and hence makes it more satisfying for the recipient.

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A study has revealed that peer-to-peer recognition programs are used in nearly 41% of organizations.

In fact, Globoforce Employee Recognition Survey has established the fact that aside from making employees feel satisfied, this method of recognition also helps to improve customer satisfaction.

What are the Benefits of Peer-to-Peer Recognition?

Employees get a greater sense of satisfaction, self-worth, acknowledgment, and achievement when recognized and appreciated by their peers

There are situations where peer-to-peer recognition can provide greater benefits:  

1. Creates a positive organizational culture

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Peer-to-peer recognition promotes a work culture where employees praise their co-workers and appreciate their accomplishments in a frank and transparent manner. 

The employees learn to interact and openly share their views and opinions about various aspects of work and the organization.

Hence, this helps in creating a more friendly and cordial environment at the workplace and promotes strong interpersonal bonding between employees.

The overall result is the creation of a positive work culture.

2. Promotes teamwork and team spirit       

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Peer recognition helps in fostering a deep sense of collaboration and camaraderie among employees.

This, in turn, helps in significantly reducing any discord and differences between employees; enabling coworkers to resolve their disputes over work issues without the intervention of the management.

It fosters team spirit making employees truly supportive of each other.

3. Enhances employees’ social acknowledgement

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Also, being recognized by their co-workers fills the employees with a deep sense of satisfaction and gratitude.

They experience positive energy and happiness due to the affirmation and acceptance of their colleagues.

Hence, receiving appreciation from co-workers makes the whole process of recognition more meaningful.

4. Lends credibility to the whole recognition process

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Also, the employee recognition process can drive results provided that are truly transparent and unbiased. 

Peer-to-peer recognition offers organizations the best way to achieve this objective.

Hence, apart from enhancing the level of trust and camaraderie among employees, it makes the process of employee recognition truly transparent and fair.

What is Manager Recognition?

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In this method, the rights of acknowledging and rewarding the employees rests mostly with their managers and supervisors.

The managers use various criteria to identify candidates worthy of being recognized. They then select the ones that outshine the others based on specific pre-defined parameters.

Despite being a traditional employee recognition policy, it is losing its sheen in modern organizations as a significant percentage of employees do not perceive it to be unbiased.

Employee Appreciation

However, many employees consider this method to be unreliable as they believe that the managers are not completely aware of their true competence and capabilities and have preconceived notions about them.

Managers who regularly recognize the performance of their employees can contribute towards improving engagement by roughly 60% as suggested by Turbocharging Employee Engagement: The Power of Recognition from Managers, as it helps to enhance employees’ well-being.

When Does Manager Recognition Work Better?

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Despite the growing popularity of peer-to-peer recognition, the importance of employees being recognized by managers cannot be undermined.

There are a few scenarios at the workplace where this method of employee recognition might hold the edge:

Peer-to-Peer Recognition versus Manager Recognition

1. Managers may know better

Recognition by managers may be for specific achievements of employees against goals set or tasks allocated by their supervisors, which might not be immediately known to their coworkers.

2. More representative of the organization

Manager recognition can prove reassuring for the employees of being a valuable asset to the organization, thus boosting their morale and productivity.

3. More inspiring for others

Most importantly, employee recognition by managers is essential for highlighting specific achievements and behaviors that came to become examples for other members of the workforce to emulate.

A survey also revealed that 85% of employees think managers and leaders should spot good work and give praise at the moment, and 81% think this should happen on a continuous, year-round basis.

Bottom-line

Peer-to-peer and Manager recognition are the two main pillars of a successful employee recognition program and should be used in tandem by an organization to build motivate and engage its workforce.

Sagar Chaudhuri

Lead author: Sagar Chaudhuri, the Co-Founder and CEO of HiFives. He is an HR Tech Evangelist with over 25 years of experience in the corporate world and entrepreneurship. In the past, Sagar has worked with companies such as Genpact, Infosys, and ICICI Bank, in leadership roles. He has an engineering degree from IIT Kharagpur and an MBA from IIM Lucknow. Connect on LinkedIn

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HiFives is a global employee rewards, recognition and engagement SaaS platform that enables organizations to digitize, automate and transform their employee experience. It is used by 100+ large enterprises, small businesses and startups in manufacturing, retail, technology, financial services and media, across 25+ countries.