New research suggests that 94 per cent of small and medium-sized enterprises (SMEs) regularly gift rewards to their employees, while 34 per cent believe that they enjoy enhanced employee retention rates as a direct result of this.
Furthermore, more than a half of SMEs feel that their business’ reward culture helps to improve employee motivation and engagement.
The research, which was carried out by American Express UK, also found that SMEs vary in the ways in which they reward their members of staff.
38 per cent of SME decision makers said that they offer rewards specifically to high-performing individuals in exchange for business achievements and impressive work.
Meanwhile, 23 per cent of respondents said that they made company perks available to all members of their team, while 21 per cent said that they liked to reward longstanding members of staff.
When employees were quizzed to determine how they felt about company rewards, almost half (46 per cent) of SME staff said that receiving rewards made them feel ‘truly valued’, while a third added that they felt more motivated after receiving an award.
Commenting, senior vice president at American Express UK, Jose Carvalho, said: “SMEs are reaping the benefits of actively showing employees appreciation for their hard work.
“A simple thank you goes a long way and will not only make employees feel good, but will benefit a business in the process,” he added.