Some small to medium sized enterprises (SMEs) struggle to adequately recognise the achievements of their staff, it has been claimed.

According to research by Nectar Business, 81 per cent of managers in UK SMEs believe rewarding employees can help to motivate them and encourage loyalty.

However, 48 per cent admit they do nothing to recognise the hard work and dedication of their staff and only 23 per cent have some form of recognition scheme in place.

Money is seen as the number one reward for staff achievements, with 36 per cent of bosses citing cash as the bonus most likely to inspire employees.

Jan Hills, director of the human resources consultancy HR With Guts, said: "It is important for any business or any individual manager to make sure they always respond positively to a job well done, whether through a formal reward process or simply remembering to say it."

According to Incomes Data Services, effective staff recognition schemes can help to build corporate reputations and enhance "employer brands".