Small and medium-sized enterprises are being advised to offer staff a share scheme that gives employees the opportunity to buy company shares at a discounted rate, according to Retail Week.

Under such a system, employees can reserve a fixed amount of money from their salary for a certain period, exclusively for share purchases.

When the period ends, workers can then opt to buy company shares at the price which was set when they began the scheme.

And according to experts at Mace & Jones (M&J), this type of share-buying method can provide wide benefits for employees, employers and other stakeholders, with the additional advantage of attracting and motivating staff.

Bruce Robinson, a lawyer for M&J, said that it also aims to give employees "a sense of ownership and a keen interest in how the business performs".

He added: "Share schemes are proving an increasingly popular way of running a business and can provide attractive tax incentives for both the employee and the employer."

Business owners may find that incorporating a share scheme into their business at the point of company formation could provide the incentive for staff to start saving immediately.

According to Personnel Today, a Save as you Earn scheme at Tesco is set to give its 50,000 shareholders a 120 per cent return on investments.