According to Dragons' Den entrepreneur James Caan, simply offering staff flexible working hours or allowing them to work from home can boost morale.
Writing for the Daily Telegraph, Caan said that during times of economic uncertainty - like the one being experienced at the moment - it can be difficult to keep staff engaged.
And with budgets under pressure, he claimed, corporate team building events can end up being put on the back burner.
He told the news provider: "People don't just need reward, they need recognition. So why not spend some time with each member of your team to see what would make their day more interesting?"
Mr Caan said employees can even benefit from "share options and awards schemes".
Whitbread recently won the Grand Prix at this year's Employee Benefits Awards for effectively engaging its workers during the downturn.