HR & Management

You’re in the minority if your business doesn’t offer employee rewards

2 min read

25 May 2017

Former deputy editor

The importance of employee rewards is recognised by an overwhelming majority of UK SMEs, which suggests companies that don’t acknowledge this could have staff retention woes.

Indeed, 94 per cent of SMEs are providing employee rewards, according to the American Express research.

It comes at a time where workplace happiness and work-life balance is increasingly important for staff, and 51 per cent of SMEs that embrace gifting say they hope employee rewards will motivate workers.

Elsewhere, a third say that employee rewards have increased staff retention levels, ticking the box for job satisfaction.

Jose Carvalho, SVP 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.”

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How employee rewards are being issued:

  • 38 per cent of SMEs provide high achievers with rewards, such as employee of the month
  • 23 per cent of SMEs offer employee rewards to all staff
  • 21 per cent of SMEs have a focus on company benefits for longstanding team members, rewarding loyalty

In terms of how staff feel about SMEs providing employee rewards, 46 per cent said they feel valued, 44 per cent felt as though hard work was being recognised and a third felt determined to work harder.

“Our study also shows that a number of SMEs are gifting rewards accrued through spending on a credit card, such as high street vouchers – 46 per cent,” added Carvalho.

For the six per cent minority of SMEs that do not provide employee rewards, workers at the companies would relish such perks and they would have key benefits, according to the report. Some 42 per cent think of employee rewards in a positive light and 37 per cent claimed they would put extra effort into their role.

Closing on key pointers, American Express noted:

  • Rewards are an asset that can encourage new talent.
  • When issuing rewards, be sure to make it a sincere personal recognition to the team member with choice words.
  • Choose the right opportunity to provide the employee rewards.
  • Using a business credit card can earn rewards from company spending.
  • Listen to employees to gain input on what’s being overlooked to ensure you understand their needs.