We have a company wide recognition system, but it's not very consistantly (or fairly) used in my opinion. People who are more visible on a project tend to get recognition as oppossed to the people behind the scenes who are doing the work (and often interact with the nominators).
Recognition is attached to points in varying denomiations and those points can be redeemed for cash or giftcards. I feel like I work pretty damn hard, but I've only gotten one, maybe two awards this year (one may have been a team award). :-/
I'd like to see a system like you mentioned in your post. Where everyone is strongly encouraged to lift up others within the team or department. I think it would help boost morale and keep hard workers feelings engaged in the work that they do.
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