Small firms should offer people the option to work flexibly if they want to successfully attract and retain staff, it has been claimed.
A new survey City and Guilds reveals that only 44 per cent of people remain in their current job because of the financial rewards while personal considerations, such as work life balance are more important.
Despite this, only one in five firms offer their staff the chance to work flexibly, something that could mean they are damaging morale.
Bob Coates, managing director of City & Guilds, said: "Companies can no longer rely on those established reward and recognition policies that fail to resonate with employees and do little to combat stress levels in the workplace."
Small firms could also risk losing staff to competitors and might struggle to attract replacements, he added.
A recent survey by recruitment firm The Network found that just 16 per cent of companies reward employees for innovative ideas.
