Almost half of businesses with a turnover of less than 1 million do not offer benefits to their employees, according to recent research.

46% of respondents to a survey by market research consultants BDRC Continental said that they offered no benefits, a figure that rose as high as 68% among businesses with a turnover of less than £100,000 and 72% of all businesses created since 2006.

The service sector was most likely to offer benefits (60%), with retail and distribution the least (44%).

The survey also suggested that contributory pension schemes are the benefit most likely to be on offer, with 34% of all businesses offering a scheme to some employees.

Life insurance and private medical insurance were the next most commonly offered benefits.