The Incentive Research Foundation (IRF) recently released its signature study, 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,” says Stephanie Harris, IRF president. “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:

  1. Gen Z and Millennials are changing the game. The workforce is getting younger, with major shifts in values, behaviors, priorities and preferences among these newer employees. Expect to hear edgier music, choose from a variety of mocktail options and experience more visually stunning, Instagram-able moments on incentive travel programs in 2025.
  2. Cruises appeal to attendees and planners alike. Taking incentive trips on cruises, Depending on the location and route, can meet the priorities of aligning with attendee preferences, experiencing new destinations or managing budgets.
  3. AI use — and understanding— is increasing. 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.
  4. Gift cards and 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.

To read the full list of trends, and view or download a copy of the full report, please visit the IRF 2025 Trends Report website.