Half (51%) of employer respondents at small and medium-sized enterprises (SME) that reward employees do so to increase motivation, according to research by American Express.
Its research, which surveyed 300 SME employers and 500 employees, also found that 94% of employer respondents gift rewards to their staff.
The research also found:
- 34% of employer respondents that offer rewards to staff report an improvement in employee retention rates.
- 38% of employer respondents reward high-performing employees, 23% offer rewards to all staff, and 21% focus on providing rewards for long-serving employees.
- 37% of employer respondents that do not reward staff believe that doing so would make employees work harder.
- 89% of employee respondents have received some form of reward from their employer.
- One-third (33%) of employee respondents feel that receiving a reward motivates them to work harder, 46% feel valued, and 44% feel as though their employer rewards them for their work and dedication.
Jose Carvalho (pictured), senior vice-president at American Express, 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.”