In positive news for the incentive travel industry, a new study by the Incentive Research Foundation (IRF) has revealed that interest in travel experiences remains high among incentive programme participants and these experiences are associated with strong engagement levels.

The research explores which rewards employees prefer the most and whether that has changed since the start of the COVID pandemic.

Respondents were asked to rank ten annual incentive rewards in terms of preference, and incentive trip for yourself and a companion ranked third, after cash bonus and getting an extra week of paid time off.

Given that the world has changed dramatically since the pandemic, the study revealed that only 16% indicated their reward and recognition preferences had changed.  

The data shows only slight shifts in preferences toward incentive travel – people showed a slight shift in preference more toward regional experiences to which flying is not a requirement, and experiences that require less interaction with others. 

The research also revealed that despite cash bonuses being popular, they are not strong drivers of engagement. When rewards were correlated to job satisfaction and motivation to do best work, incentive travel awards rated highly.

When it comes to ongoing rewards and recognition, the study showed that the gifts of time and experience take precedence.

Employees ranked getting a paid day off and flexible working hours as top preferences, followed by experiential rewards including having the company pay for lunch or dinner with your family and having the company pay all expenses to a special event.

 Another theme that emerged from the research is the focus on family (e.g., having a gift or token of appreciation sent to family members, having lunch or dinner with your family paid for by the company) which re-emphasises the high importance many people place on their families during this time of challenge. It underscores the importance of recognising ‘family’ as a strong cultural value of companies.

Overall, the study highlights the importance of finding a balance between giving incentives that people want, while understanding that some lower priority rewards are often associated with higher levels of employee engagement.