A range of non-financial incentives can be used by business insurance customers to motivate their staff, it has been claimed.

Simon Garret, director of global management consulting firm Hay Group, said enterprises should use recognition programmes to reward the efforts of their high-potential employees.

He explained: "You can even have low-cost recognition arrangements, which can range from something as simple as employee of the month and a photograph on the notice board to things like paid-for holidays."

The expert pointed out that business insurance holders who implement these schemes will incur some costs, but these are likely to be less than if a financial bonus was used.

In addition, Mr Garret claimed that business insurance holders should keep lines of communication open with workers, to prevent ill will if they are forced to make unexpected redundancies after introducing a high-potential programme.

Recently, Annie Lawler, a stress management expert from Breathing Space for Business, wrote on hrzone.co.uk that the effort of employees can be recognised with small, inexpensive rewards.

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