Peer recognition apps are sold as silver bullets that increase workplace happiness, improve engagement, boost motivation, and ultimately reduce employee turnover. Often touted as must-haves, do these apps actually deliver on their promises? Before we dive deeper, let’s look at some definitions.
Some essential notions
What is peer recognition?
Peer recognition, as the name suggests, is done between colleagues rather than from the line manager to the employee. It is a horizontal level of recognition whereas traditional recognition is vertical or hierarchical. Although its effects on employee motivation and engagement can be beneficial, peer recognition is in no way a substitute for a more traditional form of recognition. Rather, it is complementary to it. Typically, it takes the form of simple gestures such as an email, a verbal mention in a meeting, or a message left on the desk.
What is a peer-to-peer recognition application?
In recent years, several peer-to-peer recognition applications have emerged. In concrete terms, these applications allow employees to send congratulatory messages or award points or "badges" to their colleagues. These points or "badges" are generally exchangeable for rewards.
What is effective recognition?
To be effective, let's remember that recognition must be sincere, specific and personalized . It must not only recognize the effort made, but also value the person who receives it. Do peer-to-peer recognition applications really offer an effective recognition solution? Are they really useful? Is their cost justified? In this article, we present 10 reasons why we believe they are useless, expensive and ineffective. In the process, we will highlight simpler and more authentic alternatives to achieve your recognition goals.
10 Reasons Why You Don't Need a Peer-to-Peer Recognition App
1. Free solutions exist
Before turning to paid apps, it’s essential to remember that free tools already offer solutions for organizations that want to encourage peer-to-peer recognition. A Facebook group, Slack channel, or Teams team allows employees to publicly recognize their colleagues’ achievements, at no additional cost. These solutions are instant, require no training or user manual, and, best of all, they’re free. Why pay for an app that provides little added value?
2. The points system: a source of confusion and frustration
One of the most problematic aspects of peer-to-peer recognition applications is the use of points as a reward currency. This system, which is supposed to be a source of motivation, is actually confusing for many employees. Indeed, points are abstract. What exactly are the points received worth? How can they be used? If a point is worth $1, the points system seems useless. If several points must be accumulated to obtain $1, this system can then force the employee to do calculations to understand the real value of their points. Rather than creating motivation, points therefore lead to misunderstanding and even frustration. The Air Miles story has shown us the risks of this type of system that lacks clarity.
3. Hidden costs for the company
Peer-to-peer recognition apps aren’t as transparent as they make them out to be. In addition to subscription fees, there’s often a fee for each point redeemed. What seems like a simple way to gain recognition can turn into a significant expense. These hidden costs make it harder for HR and Finance to manage their tasks, and can create unexpected budget overruns.
4. A lack of personalization
Peer-to-peer recognition apps often lack personalization, specificity, and sincerity. Not so long ago, a birthday card with a little note from your closest colleagues was given to you. Now imagine receiving a birthday gift in the form of points. Pretty impersonal, right? Points turn a genuine act of recognition into a transaction. In contrast, sincere gestures, like a personalized cake or a birthday song sung by your colleagues, have a much stronger emotional impact. They are instantly understood and valued for their real meaning.
5. A cost that does not reflect the actual use of the application
Peer-to-peer recognition app subscription fees often include a cost per employee, whether they use the app or not. For employees who don’t have an email address or are unfamiliar with technology, these recurring fees are an unnecessary expense that can quickly snowball. Plus, because peer-to-peer recognition apps don’t offer a solution for these employees, you’re unintentionally excluding them from your recognition program.
6. Increased mental load for HR
HR managers already have a lot of responsibilities to manage. Adding access, expense, and point tracking, plus analyzing app usage statistics and monitoring employee interactions only adds to their mental load. It distracts them from core tasks and adds unnecessary complexity to their daily work.
Also read: How to recognize your employees without overloading your HR team?
7. Superficial interactions
Peer recognition apps often encourage superficial interactions. Automated messages or emojis are no substitute for thoughtful messages, meeting applause, or other spontaneous, genuine recognition. This superficiality can end up weakening team spirit instead of strengthening it. When it comes to recognition, the time and effort invested in recognizing an achievement or milestone often adds value to the gesture. If you cut corners with an app that dehumanizes the gestures of gratitude between colleagues, your employees’ morale could suffer.
8. Gamification that devalues recognition
Turning recognition into a game where employees earn points or “badges” may seem fun at first, but in the long run, it risks devaluing recognition. Indeed, the transactional aspect of this approach diminishes the impact and perceived value of recognition. Unhealthy competition and system manipulation are just some of the possible perverse effects of gamification.
9. Privacy and data collection issues
Peer recognition apps collect data on employee interactions, which can be perceived as an intrusion into their work lives. Knowing that interactions are being monitored can create a climate of distrust. Also, some employees may feel judged based on their activity on the app.
10. A risk of favoritism
Some apps promote interactions between small groups within a team, which can lead to favoritism. Employees who do not receive as much recognition as their colleagues, despite doing equal work, may feel a sense of injustice that harms team cohesion.
Conclusion
So, does your company really need a peer-to-peer recognition app? Free solutions and more traditional approaches are still effective ways to create a positive recognition culture… minus the hidden costs and complexity. In a world where artificial intelligence is increasingly taking over, what employees really need is recognition that comes from the heart—recognition that is human and deeply sincere.