Incentive programs and rewards are responding to new priorities and generational change, says IRF study.
A new study from the Incentive Research Foundation, IRF 2025 Trends Report, predicts a broad landscape of incentive, reward and recognition programs this year. Tight budgets are a given, with incentives designed to maximize motivational impact. “In 2025, incentive programs and rewards will see significant shifts in response to evolving corporate priorities, changing audience preferences, and budget demands,” said Stephanie Harris, President, IRF. “As competition for talent and employee retention continue, a strong portfolio of incentive, reward, and recognition programs is a strategic driver of company culture and employee loyalty.”
Among the top trends for incentive, reward and recognition programs in 2025:
Reward Expansion. Increasing emphasis on broader reach, culture building and recognition signal an expansion of rewards. While traditional qualification-based incentive programs remain popular, programs are being expanded to reward people who are not on the sales team.
Decreased Merchandise Spend. In the past year, North American programs have seen a decline in spend for both merchandise and on-site gifting. However, use of merchandise rewards in the $50 to $100 price range has increased. The 2025 IRF study predicts that despite reduced budgets, the variety of price points and availability of new types of merchandise still make this a flexible and frequently used reward type.
New Destinations. According to the 2024 Incentive Travel Index, 70 percent of buyers are considering destinations they have not used before. This preference for previously unvisited destinations reflects attendees’ renewed sense of adventure, desire for bucket-list travel and experiences they would not be able to get on their own.
Cruise Appeal. Cruise incentives are growing in popularity due to their bucket-list appeal for attendees and all-inclusive advantages for incentive travel budgets.
AI Usage. Incentive professionals will continue to learn about the potential uses of artificial intelligence in 2025, especially private generative AI for data privacy and security. Currently AI is being used most frequently to prepare program materials and as a planning, forecasting and budgeting tool.
Sustainability Challenges. Sustainability costs continue to slow down progress in the U.S. However, planners are making program changes such using refillable water bottles and reducing travel distances to foster sustainable practices. Incentive professionals are learning how to effectively communicate the business value of sustainable practices, including improving brand reputation and gaining a competitive advantage.
A Younger Workforce. Incentive professionals are looking at new approaches to motivate and engage emerging talent who have different values, behaviors, priorities and preferences than older generations. Gen Z and Millennials’ desire for choice is being met with increased flexibility in program agendas and dining options on incentive travel programs. There is also more emphasis on wellness and inclusiveness. Expect edgier music, shorter keynotes and more visually stunning Instagrammable moments.
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