The Incentive Research Foundation (IRF) announced the release of the IRF 2025 Trends Report. Incentives continue to be an effective tool that businesses are using to gain competitive advantage, but programs and rewards are poised for change to maximize their motivational impact in 2025.
“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.”
The top trends for incentive, reward, and recognition programs in 2025 include:
Gen Z and Millennials are Changing the Game: The workforce is getting younger, with major shifts in values, behaviours, priorities, and preferences among these newer employees. Expect to hear edgier music, choose from a variety of mocktail options, and experience more visually stunning Instagrammable moments on incentive travel programs in 2025.
Gift Cards & Merchandise Fit into Fluctuating Budgets: As incentive professionals work with flat or decreased budgets, merchandise and gift cards offer flexibility and price points so that programs can be scaled according to budget and participant preferences.
Cruise Appeals to Attendees and Planners Alike: Depending on the location and route, taking incentive trips on cruises meets the priority of aligning with attendee preferences, experiencing new destinations, or managing budgets.
Desire For New Locations For Incentive Travel: According the 2024 Incentive Travel Index, 70 per cent of buyers are looking for something new and considering destinations they have not used before. the desire for previously unvisited destinations reflects a renewed sense of adventure, the desire for bucket-list destinations and experiences, and access to travel experiences attendees would not be able to get on their own.
Increased Use – and Understanding – of AI: Incentive professionals will continue to increase their understanding of both practical applications and the potential uses of AI in 2025 – focusing on the most appropriate and effective uses for this tool, how reliable AI is, and best practices around data privacy and security.
