Maximizing the Impact of Peer-to-Peer Workplace Recognition Programs

When William James, known as the father of American psychology, was a professor in 1896, his class sent him a potted azalea for Easter. In a letter thanking the students, James wrote one of his most famous lines:

« Le principe le plus profond de la nature humaine est l’envie d’être apprécié. »

Over a century later, research has proven him right. In a study of over 200,000 people, “appreciation for your work” ranked as the number one driver of job happiness—above compensation, career development, and work-life balance.

Recognition isn't just a feel-good gesture. It's a fundamental human need. And when organizations fulfill that need through peer-to-peer employee recognition, the effects can transform your work culture and business outcomes.

Why peer-to-peer recognition matters

Most organizations understand the value of manager-driven recognition. But when appreciation flows only top-down, it’s limited in scope and impact. Peer-to-peer recognition, on the other hand, unlocks a powerful cultural shift. Recognition flows in every direction, strengthening every facet of your work culture.

Here’s what happens when peers are empowered to recognize each other:

• Engagement rises. Employees who regularly give recognition are 26% more engaged.

• ‍Belonging deepens. 86% of employees say giving recognition helps them connect better with colleagues.

• Culture strengthens. 89% agree peer recognition improves workplace culture.

• Turnover drops. 75% of employees say giving recognition makes them want to stay longer.

• ‍Performance improves. Giving recognition leads to a 33% boost in innovation and 22% better work results.

• Wellbeing increases. 84% of employees say giving recognition improves their personal wellbeing.

According to Forbes, employees who regularly receive recognition from both managers and peers are 56% less likely to seek new job opportunities and are five times more likely to feel connected to their workplace culture.

It’s clear that when recognition becomes part of everyday work, people and organizations thrive.

The cultural impact of recognition at work

At its core, peer-to-peer recognition builds a culture of appreciation. And appreciation is contagious.

It sparks positive emotions, builds strong relationships, and promotes pro-social behaviors like helping, mentoring, and collaborating.

Here’s what that looks like in practice:

• Happier, more connected employees. Gratitude has been linked to higher life satisfaction and lower stress. When employees are encouraged to thank each other, they’re more likely to feel seen, valued, and fulfilled.

• Healthier teams. Peer recognition increases psychological safety and fosters cooperation. It creates environments where people share openly, trust deeply, and celebrate each other’s wins.

• ‍Better collaboration. As gratitude strengthens relationships, teams function more cohesively. People are more willing to help on tough projects, share credit, and contribute generously.

The Global Culture Report shows that peer-to-peer recognition increases the likelihood of a strong team culture by 2.5x.

Norton Healthcare: Connection that Cuts through Crisis

‍When Norton Healthcare rolled out its “N Recognition of You” program with peer-to-peer capabilities, the results were dramatic. Recognition became a lifeline during the COVID-19 pandemic, boosting leader trust, reducing burnout, and strengthening community.

Employees began actively recognizing one another across roles and departments, leading to a measurable improvement in employee satisfaction. Leader-employee relationship scores climbed from the 86th to the 99th percentile in just one year—proof that appreciation among peers can build resilience, even in healthcare’s most stressful moments.

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Best practices for building peer-to-peer recognition

According to Gallup, employees who receive high-quality recognition are less likely to leave. Research in the Global Culture Report shows that great work increases 18x when people are recognized.

That’s the power of peer-to-peer recognition, and here are seven ways to do it right:

1. Make it strategic and integrated. Peer recognition isn’t just an HR perk—it’s a culture-building initiative. Implement an enterprise-wide program that’s tied to your organization’s values and supported by senior leadership.

2. Empower everyone. Every employee—regardless of title, department, or location—should be able to give and receive recognition. Ensure access is universal and inclusive.

3. Keep it simple and accessible. Make your tools easy to use, with mobile and offline capabilities for deskless and remote workers.

4. Shine a light on great work. Public recognition multiplies impact. Use digital walls of fame, meeting shoutouts, and shared celebration spaces to showcase achievements and inspire others.

5. Celebrate together. Invite peers to be part of recognition moments, from project wins to service milestones. The more people who participate, the more meaningful and memorable the experience becomes.

6. Lead by example. Leaders should model the behavior they want to see. When leaders recognize others and talk about the power of appreciation, employees follow suit.

7. Keep it top of mind. Recognition should never be “set it and forget it.” Regular communication, reminders, and cultural cues help keep recognition flowing and ensure your program stays vibrant and effective.

CIBC: Moments that Connect

‍CIBC elevated their culture with their “MomentMakers” program, an enterprise-wide platform that makes appreciation visible, social, and inclusive. Employees can recognize each other in real time through a digital social wall, sparking positivity that spreads across teams and locations.

By encouraging peer-to-peer recognition and tying it to core values, CIBC built a more connected culture where everyone feels seen and celebrated.

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What makes recognition stick

It’s not enough to simply say “good job.” To be effective, peer-to-peer recognition should be:

• Timely—Recognition in the moment shows attention and care.

• Genuine—It should never feel transactional. Authentic gratitude is personal and heartfelt.

• Specific—Go beyond “thanks” to explain what the person did and why it mattered.

• Shared—Social recognition encourages a culture of appreciation and amplifies its impact.

Consider assigning Recognition Champions to model these behaviors and help build recognition habits across your organization.

Tools that power peer-to-peer recognition

Culture Cloud® by O.C. Tanner

Culture Cloud has everything you need to make appreciation part of your everyday culture.

• Enable peer-to-peer recognition across all teams
• Create a social feed to showcase great work
• Integrate with tools your people already use (Slack, Teams, Outlook)
• Align recognition with your company’s values
• Scale local to global and everywhere in between

With the Culture Cloud platform, recognition becomes visible, accessible, and inclusive—connecting people no matter where people work.

Mobile app

Recognition on the go, wherever work happens.

• Easy-to-use interface for quick recognition
• Mobile-first design for offline and remote teams
• Push notifications to keep recognition top of mind
• Commenting and reacting to recognition moments

When recognition is easy to give and impossible to miss, everyone feels appreciated.

Milestones & anniversaries

Make career milestones more impactful. And let peers be part of the big moments, too.

• Invite teammates to contribute to service anniversaries
• Create collaborative celebration pages
• Add peer messages and photos
• Help employees feel valued with a personalized book

Keep your people connected to each other and their purpose.

Build a culture where recognition grows

When peer-to-peer recognition is woven into your culture, something powerful happens: appreciation becomes a daily experience. Employees don’t wait for their manager to notice their contributions. They feel seen, valued, and celebrated by the people they work with every day.

The result? A thriving workplace where happiness, empathy, connection, and performance are the norm. A place where people want to do great work and stay longer.

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‍For more insights into how recognition impacts workplace culture, check out our 2025 Global Culture Report.