Rewarding staff can be an effective way to motivate them and encourage increased productivity, according to the Institute for Employment Studies.
Principal research fellow Dilys Robinson said that depending on the type of work being carried out, non-financial rewards can work well as an incentive for hard work.
"For some, the recognition of being employee of the month or having a weekend in Paris or something might be really great," he explained.
Reward programmes can work particularly in sales environments, he added, as sales jobs have always been somewhat "incentive-driven".
However, he said the type of rewards offered should vary from company to company and employers need to find out what motivates their staff in order to develop effective reward strategies.
A recent survey by the Trades Union Congress found that 24 per cent of UK workers feel unsatisfied in their jobs and 30 per cent feel unengaged by their employer.