Building up a good working relationship with employees can help firms retain their best staff.
This is according to performance and rewards adviser for the Chartered Institute of Personnel and Development Charles Cotton, who explained that it is "not always pay that encourages people to leave but also the relationship they have with their line manager".
He noted that while spending cuts at businesses are inevitable in the current economic climate and it is important employees recognise this, extreme reductions could have an adverse effect on employee morale.
If organisations begin cutting back on items such as tea, coffee and biscuits, he remarked, it sends out a message to workers that "the organisation may be in deeper problems than they had originally anticipated".
However, enterprises that are having to make cutbacks - especially small and medium-sized employers - can still demonstrate that they value their staff by offering "relationship-building" rewards, such as events that recognise achievements.
Doing this, Mr Cotton commented, shows employees that the enterprise they work for "does care about their welfare" even if funds are limited.
The expert was commenting after new research from uSwitch.com revealed that 43 per cent of British workers do not get free cups of tea or coffee at work.
According to the figures, which were published last week, 25 per cent of personnel have seen their company cut back on refreshment spending over the past 12 months.
As a result, 19 per cent are worried about their future, while one in ten believe that the lack of free drinks has changed the workplace atmosphere.
Based on research of a thousand businesses, read more about how nurturing talent amongst your workforce will help you through the current economic climate. 