Managers aren’t the only ones who can dole out rewards to peak-performing employees. Co-workers can run effective rewards programs as well. For example, corporate communications workers at Progress Energy in Raleigh, N.C., award each other coupons that can be exchanged for gift certificates. Under this peer reward initiative, which costs about $4,500 annually, employees get coupon booklets and then distribute the tickets – worth up to $25 each – whenever they see a coworker going the extra mile. Use these three tips for creating a peer reward program:

• Get buy-in. Make sure the idea fits in with your corporate culture before moving ahead. That means getting buy-in not only from management, but also from employees who would be expected to participate.

• Set policy. Draft guidelines for handing out rewards so workers don’t just trade them with each other. But once the ground rules are set, make it easy for employees to recognize their peers.

• Keep the rewards small. This not only keeps the program cost-effective, but it helps minimize jealousy among employees who don’t rake in the incentives.

Conflict with your colleagues at work may be unavoidable, but confronting is never enjoyable. Still, you’re better off getting disagreements out into the open and dealing with them directly, instead of letting them fester in silence. Here’s what to do:

• Sit down to talk. Stay calm and reasonable while you describe the problem as you see it. Stay objective and factual; don’t insert your own opinions.

• Describe your feelings. Tell the other person how the problem affects you. Use honest, straightforward language, but don’t make accusations or angry statements.

• Listen to the other side. Ask the person to tell you how he or she views the situation, and how it affects him or her.

• Suggest a solution. Once you’ve both put all your cards on the table, discuss possible options. Think constructively, and support your colleague’s efforts to help if he or she is sincere. Be ready to apologize or accept an apology, if necessary.

• Make a date. Set a definite time in the near future to sit down for a follow-up talk. This will give both of you the chance to make sure the problem has really been resolved.

• Enliven dry information by discussing it in the first person. Example: Replace “An article in a medical journal reported…” with “I read a great article about…”

• Make friendly requests. When you want someone to do something, say so. Don’t speak in the abstract. Example: Replace “It would be nice if you could…” with “I’d like you to…” That creates a stronger bond and motivates employees to please you.

• Convey positive emotions honestly. That’s better than detaching yourself from good news and reporting it as if you’re a neutral observer. Example: Replace “It’s delightful to hear that…” with “What delights me about that is…”

• Encourage employees to excel or overcome obstacles by speaking supportively to them. Example: Replace “This is something you have the skills to complete” with “I know you can do it.”

• Introduce anecdotes as firsthand accounts. You want employees to know that you’re recalling something personal. Example: Replace “Here’s a story about…” with “I have a story to tell you about…”

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