Almost two thirds (64%) of managers feel that bonuses and reward-based pay are the most effective employee benefit for retaining staff.

That is according to an online survey of senior managers carried out by technical and engineering recruiter CBSbutler through its monthly Bulletpoint management newsletter.

Just over a quarter (27%) believe pensions are the best benefit for holding on to employees. Interestingly, and perhaps worryingly, not one respondent valued lifestyle benefits such as gym memberships a worthy retention factor.

David Leyshon (left), managing director of CBSbutler, says: “I believe the best way to motivate staff, particularly in the recruitment sector, is by using bonuses and reward based pay. However it is very important that managers do not put emphasis on rewarding only hard financial targets at the expense of other qualitative skills such as team work, managing change, problem solving and customer focus.

“By linking financial rewards to behaviours, recruitment companies can lift performance across all business departments. In our case it has already led to considerable improvements in team work and customer service.”