Benefits of peer to peer recognition in a business
Motivating employees is one of the most challenging tasks for any business owner or manager. Even the most seasoned professionals fail at motivating their teams, which affects their performance. While there are several recommended ways to inspire your employees, one that stands out is peer-to-peer rewards programs. You can use tools like P2M Employee Rewards Programs to design and run such a program.
For the uninitiated, it’s a simple recognition program that takes place among coworkers. So, the employees recognize the contribution of their fellow workers rather than managers doing the recognition work. In this article, you’ll learn about some of the benefits of the P2P reward program.
P2P Reward Program Motivates Employees
Several studies have confirmed the correlation between recognition and motivation. When the employees are recognized for their work, they are more motivated to make similar contributions. When they receive recognition from their coworkers, they get the same inspiration as when they get it from higher management.
With this approach, managers can delegate the work to the teams and make it less reliant on them. Motivation directly impacts other factors like productivity, timeliness, and dedication. Therefore, every business owner must invest in a peer-to-peer reward program.
Foster Team Collaboration
When employees are recognized by each other, they are more open to collaboration. It will create an atmosphere where teamwork and peer support will thrive.
The employees will also gain confidence in voicing their opinions and putting forth their point of view. This is opposite to hierarchical management, where employees are less inclined to contribute their point of view. When teams work in collaboration, they’re more likely to succeed than teams that don’t.
Builds Trust and Improves Relationship
A study from the Delft University of Technology looked at the impact of trust among coworkers on team performance. They found teams where each member trusts and values other members exceed expectations and deliver the ultimate results.
When you’ve formed a new team or the company is experiencing turmoil, employees find it hard to trust each other. That’s when you can implement a Peer-to-peer reward program and allow employees to recognize each other’s work.
Reduces Employee Turnover
Hiring an employee isn’t cheap. In certain industries, the cost can go as high as $5,000 for one hiring. HR managers know the importance of employee retention.
But employees are humans, and if they don’t feel valued at their workplace, they’re more likely to switch to a different company.
This will not only increase your cost of hiring but will also create a hostile atmosphere within your company. Even worse, it may prompt other employees to make the switch.
But in a company where employees are valued for their contribution, they have one less reason to switch companies. And that’s one of the goals of employee reward programs.
Promotes Transparency at Work
The peer-to-peer reward system is transparent. Everyone has a clear view of who is responsible for what. This transparency goes a long way in a team delivering successful results.
Most of the things are interconnected. When employees are valued, they’re more likely to trust each other. When that’s the case, the operation is going to be transparent. With transparency, employees will view themselves as included and not excluded. And this will lead to low attrition. So with tools like the P2M employee rewards program, you benefit in different ways.