Newswise — In dynamic and ever-changing work settings, employers persist in searching for fresh methods to acknowledge employees at work. Nevertheless, recent findings from the University of Waterloo propose that public peer recognition might have adverse effects by facilitating employee comparisons, leading to feelings of unjust treatment among certain employees.

Pei Wang, a PhD candidate in accounting at Waterloo, stated, "Employers have pursued diverse peer recognition systems to foster employee assistance." Wang further explained, "When employees perceive themselves deserving of peer recognition but do not receive it, they may perceive unfair treatment. Consequently, their willingness to aid co-workers, not just the specific individual they feel treated them unfairly, diminishes."

In practical terms, employees may perceive certain behaviors as unfair during public peer recognition when there is a disagreement about what actions should or should not be acknowledged. Furthermore, some employees may only extend recognition to individuals in their immediate circle, which can contribute to a sense of unfairness.

In a controlled experiment involving three individuals in distinct roles—recognizer, helper, and worker—the researcher examines the impact of peer information shared through peer recognition systems on subsequent willingness to help among employees. In this study, both the helper and the worker provide assistance to the recognizer, but only the helper receives recognition from the recognizer. The worker displays reduced willingness to assist both the recognizer and the helper when they perceive their initial assistance surpasses that of the helper. Conversely, when the worker perceives their initial assistance is lower than that of the helper, their willingness to assist the helper is higher. This decreased willingness to help the helper stems from a reciprocal response to the recognizer's lack of recognition.

This research presents the initial empirical evidence highlighting the adverse effects of peer recognition systems on helping behavior. These findings offer valuable insights for employers seeking to implement peer recognition strategies in the workplace. While peer recognition is often promoted as a means to enhance employees' willingness to assist others, the study results indicate the importance of managers being aware of the potential drawbacks associated with such systems.

Wang emphasizes the significance of her research in alerting managers to a potential unintended consequence of utilizing public peer recognition, namely the perception of unfairness that diminishes helping behavior. To address this issue, Wang suggests that managers engage in open communication with employees and establish mutually agreed-upon guidelines regarding what types of accomplishments or behaviors should be acknowledged through public peer recognition and what might not require such recognition. This proactive approach can help mitigate the negative impact of perceived unfairness and promote a more positive and inclusive work environment.

The study, When peer recognition backfires: the impact of peer information on subsequent helping behaviour, appears in the journal Accounting Perspectives.

Journal Link: Accounting Perspectives