Praise From Peers Goes a Long Way. More U.S. employers are encouraging co-workers to pat each other on the back.

Companies ranging from Boeing Co. to Taco Bell have created systems for colleagues to applaud each other. Under these "peer-recognition" programs, employees typically thank co-workers for a job well done by giving them a card or sending an email. Recipients may become eligible for a small prize, like a DVD player or bicycle, or a more personal gift like an hour of baby sitting.

Done well, consultants say, the programs are an inexpensive way to motivate and retain workers at a time when employers are handing out smaller pay raises. U.S. salaries for nonexecutive white-collar workers have risen an average of 3.5% annually since 2002, down from an average of 4.1% a year from 1995 to 2001, according to human-resources-consulting firm Hewitt Associates. Next year, Hewitt projects 3.6% raises.

Peer recognition isn’t a new idea, but the programs became more popular during the economic downturn a few years ago. Today, the lean-time tactic is flourishing. About 35% of major companies have some sort of peer-recognition program, up from about 25% five years ago, estimates Stephanie Penner, a principal at Mercer Human Resource Consulting.

By Erin White

From The Wall Street Journal Online

Full Story: http://www.careerjournal.com/hrcenter/articles/2005122-white.html?cjcontent=mail