RESEARCH by website www.youatwork.co.uk -- Royal & SunAlliance's employee benefits division -- found that many companies are imposing measures on workers that undermine morale.

Nearly half (44 per cent) of workers do not expect to be able to use the office telephone for private calls and over half (57 per cent) are restricted from personal use of the internet and e-mail -- even in their own time whilst at work.

The study suggests that even modest investments in staff benefits can have a disproportionate improvement in staff morale and motivation.

Perks or benefits that employees expected as a matter of course included staff discounts (47 per cent of those surveyed), free refreshments (59 per cent), a staff canteen (54 per cent) and air conditioning (59 per cent).

Gerry Callaghan, Managing Director of youatwork, said: "Employers who strike a balance will reap the rewards through loyalty and hard work if their employees feel valued and are trusted not to abuse these kinds of simple benefits.

"The workplace is changing fast and although margins are tighter and profits are more modest, employers should recognise that happy employees contribute to business success. Small investments can go a long way and pay off in increased morale, increased productivity and increased loyalty."