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.
