Employee recognition programs are an excellent way to improve employee morale and engagement. A good employee recognition program can make a huge difference in company growth and productivity.

In a recognition program, leaders generate goals and expectations of what they want to achieve. Then they fashion a method suitable to use and uphold the company culture. However, crafting this method can pose some challenges.

A peer-to-peer recognition program needs to be easy to use and effective in nature. Therefore, while choosing a method, you will need to ensure your employees can easily use them and the program meets their expectations.

In this article, we will discuss some frequently used methods and the pros and cons of each method.

Peer-to-Peer Recognition Methods

Point Bank Method


The point bank method is one of the most popular and engaging methods for peer-to-peer recognition programs. Here the management gives each employee a budget of points for awarding their peers.

The users can only use their allotted points to recognize other employees, even in a managerial position. They are not allowed to exceed their budget.

The management can set up multiple awards for award points in multiple tires. In another practice, users can also choose to award variable points in a singular award level.


Let’s say a company allots 5000 points to each employee. The employees can award others these points in three categories to one another. For a job well done, the employee gets 50 points, for better performance 100 points, and for outstanding performance, the employee receives 200 points.


  • Holds user responsible for the award value
  • It gives employees a sense of control and ownership
  • Drives frequent activity
  • Less administrative effort
  • Have control over budget and exposure


  • Less managerial control
  • Allows additional autonomy to employees

Nomination Review and Approval


In this method, the employees get to nominate their peers for one or multiple award levels. The criteria will be determined by the management according to the recognition program. Later, the nominations will be sent to be reviewed by the appropriate authority.

In this method, it is easier to recognize employees and is easily shareable. Additionally, this recognition method creates opportunities for formal and informal awards in the same method.


In the nomination review and approval method, the management creates different tiers for each employee. Other professionals can choose the most suitable option among those tires. Upon receiving nominations, the employees are put through review for recognition.


  • A great way for deciding monetary rewards
  • Consistent standards can be maintained
  • Structured recognition schedule
  • Keeps employees engaged and curious
  • Adapt recognition as a part of the corporate culture
  • Suitable for companies with a large recognition budget
  • Well defined metrics


  • Repeated award category and less diversity in candidates
  • Can lose traction if the recognition moments are few and too far between

Point Banks for Nominating Employees for Recognition


This is a hybrid of the two above-mentioned methods. Here the management gives a point budget to employees. Employees use these points to recognize their fellow peers. The management also assigns an “award goal” to determine the number of employees’ recognition before recognizing.

Whenever employees reach that award goal, they will be recognized immediately.


A company distributes 5000 units to recognize among employees. Each employee can reward others for identifying the best works. When employees reach 1500 units, they will be recognized for their excellent work in which tier they were recognized.


  • Enables employees to contribute to a peer’s award
  • Keeping employees engaged while allowing you to have certain controls
  • Suitable for companies with a modest appreciation budget


  • It can be a little messy at times
  • Complex award structure

Implementing Recognition Program in a Workplace

In a workplace, recognition programs can either be conducted offline or online.

Offline, the program is more grounded. The breakroom where all employees can gather is used as the platform. A notice board holds up the metrics, and employees can award points or put their chosen nomination in there.

Offline programs will need more manual calculations. However, it creates the opportunity for human contact to collaborate.

The online recognition program is easier to conduct. All you need to do is input your required metrics. Online recognition platforms will monitor and calculate necessary data to assist the employee recognition process.

The only downside of online recognition is, it lacks meaningful human contact.

Bottom Line

Here are the most popular and effective recognition methods. You can choose any method suitable for your company. Make sure your recognition program helps you achieve your goals and address your employees’ expectations.

Online recognition platforms greatly help your recognition program. It reduces manual work and gives you the necessary insights to improve your program. On the other hand, offline programs can be cheaper and create excellent engagement.

Find out what works better for your organization and implement your recognition program.