Top Tips: Peer-to-Peer Reward & Recognition

This week we have started looking at different types of reward and recognition programmes. We’ve already looked at how to use online tools to show manager and board level appreciation, but let’s not forget peer-to-peer recognition. 

Whilst managerial recognition and financial rewards are motivational, nothing can beat the satisfaction of being recognised by your peers as a hard working employee. Before you implement a peer-to-peer recognition programme (or indeed any reward and recognition programme), there are a few things to consider.

• Before you make a decision on the recognition programme clearly define and understand the objectives for implementing the recognition programme. It may be at this stage that you realise peer-to-peer is or isn’t the best option
• Monetise the metrics -  if employee attrition is an issue at 20%, determine the cost of recruitment, training etc.  Set a realistic objective for reduced attrition and quantify the saving (reduced recruitment costs/training costs) that can be realised
• Determine if peer to peer will be enabled/encouraged cross-functional only, departmental only, or company wide
• Define an ‘affordable’ recognition budget; typically based on a £ per head basis with the per head fund determined by the industry/business profitability etc (£25 – £100 p/head)
• Define a ‘rewarding’ recognition framework based on the budget
• Don’t forget to include the implementation, operational, communication cost and, critically, the cost of BIK liability
• Register the programme with the Incentive Evaluation Unit (HMRC) and engage with a supplier who can provide HMRC compliant reporting
• Ensure the programme ‘reaches’ and is accessible to all. Consider how nominations will be submitted, assessed and feedback provided?
• Don’t forget to communicate success and reinforce the positive outcome of recognition
• Once the programme is set up there is still more work to do. Analyse the data and continue to evolve the programme
• Consider the human aspect – use surveys and forums to clearly understand the audience, what motivate them e.g. demographics, profile, cultural adaptability, hobbies
• What is the reason for the recognition? Is it related to the corporate values, and if so, are they ingrained in the organisation?
• It’s not just about getting buy-in, reward and recognition will require a level of management and on-going engagement
• Think through the process – are nominations being approved by a panel, in which case consider the frequency of and impact on recognition framework