More than a payslip, job satisfaction can also be measured by how actively engaged the employees are with their jobs. A study conducted by Timothy A and team shows that there is only a slight correlation between high performance in workforce and financial compensation. This means that it is not all about how much you pay your employee, but how often you appreciate their work. Employees will be more open to collaboration and more likely to work harder when they feel valued. Thus, this will increase the entire team’s productivity and affects positively to your company.
WorldatWork reported that 81 percent companies that give employee recognition program can create an open and transparent workplace. Half of those companies have a peer-to-peer (P2P) recognition component. Likewise, research has shown that human releases happy hormone oxytocin when someone thanks them. Hence, it can create happier and more collaborative employees which will create positive culture reinforcement in the workplace. By embracing P2P recognition, you will also see an increase customer satisfaction.
Here is how P2P affects each part of the workforce:
P2P and employee engagement – Globoforce and SHRM survey showed that peer-to-peer recognition helps make employees more satisfied with their work. Thus, P2P recognition program give positive impact to employee engagement.
P2P and its correlation to business profit – Still in the same survey, it reported that P2P is more likely give positive impact by 35.7 percent on financial results. It also increases customer satisfaction. So the strategy will not only improve employee engagement, but also boost the company’s revenue.
P2P and company insight – Robert Crawford gave example on how P2P impacted company insight. It showed that 76 percent of employees received appraisal letter from colleagues or managers and 53 percent granted one to a peer. The result presented was employee engagement and motivation improved by 8 percent. Employees also felt more valued and recognised by the employer. What’s more is that it leads to better understanding of business vision on each employee by 18 percent.
In conclusion, peer-to-peer recognition drives continuous motivation. This motivation, in turn, will increase work efficiency. Thus, work efficiency leads to better and brighter ideas which drive profits margins. Do not underestimate praise as it build strong relationship and teams which positively impact financial results.