Businesses can still retain their employees even in the event of tight budgets, it has been claimed.

Charles Cotton, performance and reward adviser at the Chartered Institute of Personnel and Development (CIPD), said establishing a rapport with staff may help employers to ensure worker retention.

While larger businesses may be holding on to employees by offering generous leave, occupational sick pay, pensions or share plans, for smaller firms with tighter budgets this may not be an option.

“The smaller and medium-sized employers don’t have those sorts of resources, so they have to focus on the more relationship-building type of rewards, such as a Christmas party or a celebration to recognise achievements,” Mr Cotton explained.

Such action would send a message to employees that the organisation they work for cares about their well-being.

His comments may prove useful after new research by uSwitch.com revealed that less than a third of British employees think their employers are generous to their staff.

Furthermore, 32 per cent claimed that perks as small as free tea and coffee boost their morale.

Related News:

• Royal Navy faces workforce planning ‘conundrum’
• Employees ‘believe they are paid less than their worth’
• Are high salaries enough for the best talent?
• Keep Britain Working
• Renewables sector offers big bucks
• IR35 review to boost engagement for freelancers
• CIPD members support performance-related pay
• Employee engagement: 5 Factors that matter to employees
• CIPD highlight key HR issues in Queens Speech
• L&D budgets cut in half of companies, finds CIPD