The IRF 2025 Trends Report, the Incentive
Research Foundation’s annual look at the incentive industry, reveals that incentive professionals are adjusting their motivational programs to meet the market’s influx of Gen Z and Millennial participants, to account for tighter budgets, to satisfy
the desire for unique destinations, and more.
“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 of the 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.”
Following are four key takeaways from the report.
Planning for a younger workforce
With Gen Z and Millennial employees making up more than half of today’s workforce, incentive professionals are looking for new ways to motivate and engage emerging talent. Younger workers place a high value on frequent, authentic recognition, so programs
that use points, gift cards and spiffs (short-term goals within a program) meet the need for frequent feedback and rewards.
According to the IRF’s 2024 Attendee Preferences for
Incentive Travel, the motivational appeal of group travel continues to be extremely high, especially among Gen Z and Millennials, signaling the continued relevance of incentive travel programs that engage these younger audiences. Among the ways planners
are tweaking their programs to appeal to younger winners include playing edgier music, offering more flexibility in activities and dining, and organizing Instagram-worthy experiences.
New destinations and settings
Incentive travel planners will continue to seek out unique destinations. According to IRF research, participants’ and program owners’ desire for adventure, bucket-list destinations and experiences is driving the trend, as is access to travel experiences
that attendees would not be able to get on their own.
Cruises are another popular option: As noted in the IRF's attendee preferences survey, 75 percent of the participants polled said a cruise experience is desirable, regardless of the destination.
More merchandise rewards
More than half of respondents to the most recent Northstar/Cvent Incentive PULSE Survey reported that their 2025 incentive budgets would either remain flat or would be cut, compared with their 2024 budgets. As incentive professionals work with tightened funds, planners are turning to merchandise rewards, which offer greater pricing flexibility
than travel.
While bigger-ticket items like electronics are used less often, according to the IRF’s Industry Outlook for 2025 merchandise rewards in the $50 to $100 price range have increased. More moderate-value items, including brand-name merchandise with company logos and clothing/apparel are popular now.
Increased adoption of AI
Incentive professionals will continue to increase their understanding of both practical applications and the potential uses of artificial intelligence in 2025. While the use of AI among incentive-industry professionals still is in its relatively early
stages — according to the Incentive PULSE Survey, just 23 percent of incentive professionals said they were using AI — they will continue to explore effective uses for this rapidly expanding technology.