Two-thirds of employers (67%) are planning to improve their line managers' ability to communicate staff rewards.

The Hay Group and WorldatWork also reports that 64% of businesses will take a closer look at the motivational value of reward programmes.

Some 57% plan to increase their focus on employee engagement in measuring their reward programmes - up from 40% at the moment.

The survey found that 44% are planning to increase their future focus on using reward to reinforce a "culture of creativity and innovation" and that 52% are to focus on non-financial recognition as a form of reward.

Colin Evans, UK head of reward services for Hay Group, said: "The global downturn has prompted organisations worldwide to shift to an increased focus on how to engage and motivate employees.
 
"However, during times when budgets are tight, maintaining an engaged workforce is more difficult than ever. When times are tough, employers are looking for ways to improve engagement - and it's essential they remember the motivational power of intangible rewards, the role of the line manager in establishing a great work climate and the importance of communicating effectively with employees."