Peer to peer recognition is one of the most powerful workplace motivators there is. When your workplace culture encourages employees to recognize their peers for; work well done, stellar customer interactions, mentoring, going above and beyond, etc., you are positioning your organization for success.
I have seen peer to peer recognition systems implemented in many different organizations in many different ways. It can be as simple as an email, a pat on the back, a handshake or an anonymously submitted form. It can be as formal as a monthly meeting with all employees where people are recognized for their exemplary service.