Research
PAUL BLACK Assistant Professor & Dean's Fellow School of Accountancy
“According to Black’s study, commendation directly from colleagues boosts camaraderie and collaboration even more than that same commendation from superiors.”
The Positive Side of Peer Pressure B usiness is a team sport. Build
analysts use the peer recognition system, then you’re more likely to collaborate and the system is effective. But if your group does not use the system—say you’re a senior analyst and none of the senior analysts use it—that sets the tone at the top.” Like a social media platform, users in a peer recognition system, PRS, can send short comments or messages within the software. Some systems even allow employees to put their money where their mouth is and send small monetary gifts—typically under $5—to fellow workers. These honorary tokens make little difference in employee salaries; but, Black says the incentive is not to one-up each other’s pay scale, but to add to the bank of team spirit. And according to the research, a
willingness to collaborate equates to financial success for the company. There is a caveat to PRSs, however, that could cause a cultural backfire if you’re not aware. Black’s follow-up study points out that if the chosen platform uses a leaderboard or rank- ing system which publicly displays levels of employee recognition, it may result in hard feelings or lowered self-value among employees. Com- parison is the killer, and PRSs are most effective when the system keeps interactions peer-to-peer rather than open-ended, Black says. Personal recognition systems have gained momentum at companies like Google and Intuit. And even if your company isn’t a multi-tiered corporate empire, having a PRS in place may still be of benefit. Black has observed smaller scale companies with fewer than 50 employees have found success, as long as the type of system chosen reflects the style and behaviors of the company culture. A quick search will turn up a variety of software systems fine-tuned to the needs and quirks of your employees. Give it a try and let Harbert know what you think. HM
an energized team and you’ve got an energized business. A manager can assemble a team, set goals, provide training, offer incentives, even threaten punishments but research by Harbert fellow Paul Black suggests a better, simpler way: peer recognition. Recognition for hard work or outstanding achievement is not a groundbreaking idea. Businesses have been highlighting an “employee of the month/year” for decades. In large, corporate environments, a “keep up the great work!” email from a boss usually suffices. But Black points out that more than giving employees a pat on the back or a pay raise, peer recognition adds social fuel to company culture through smaller, personalized acknowledgements. It gives employees a way to say to each other, “I see you. Good job, thanks.” According to Black’s study, commendation directly from colleagues boosts camaraderie and collaboration even more than that same commendation from superiors. But you’ve got to set the tone at the top. “If you’re a junior analyst at a firm,” Black says, “and all the junior
Harbert Magazine 11
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