This is in spite of the fact 81% of business managers in SMEs believe recognising and rewarding staff is directly linked to a highly motivated and successful workforce and the fact 77% of bosses believe they might not be doing enough to hold on to their staff.
The findings come from a report by Nectar Business, the loyalty card provider. It also reveals 84% concede that if hard work goes unnoticed, staff will feel undervalued.
Only a quarter of SMEs (23%) implement some form of reward and recognition scheme and 60% do not think motivational practices have changed in their firm in the past 25 years.
Jan Hills, director of consultancy Hrwithguts.com, said: "Acknowledging staff achievements is not just a small business issue. Even companies with large HR departments can struggle with recognising success adequately."
The top motivator in SMEs is cash bonuses with 36% adopting them.
Hills added: "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."
SMEs don't do enough to reward good performers
Almost half of UK bosses (48%) admit they do not recognise their staff's achievements, with a quarter of them thinking a happy office environment is enough.
