New IRF Research Examines Impact of Reward Value on Employee Motivation

Washington, DC (February 18, 2025): The IRF announces the release of Non-Cash Value Perception: Identifying the Tipping Point. This study highlights the importance of determining the optimal monetary value for incentive rewards. While higher rewards can boost motivation and participation, there is a threshold where additional increases have diminishing returns. Identifying this tipping point helps organizations maximize the impact of their incentive programs without overspending.

“Whether using travel, merchandise, gift cards, or points, the value of non-cash rewards is in the eye of the beholder,” said Stephanie Harris, IRF President. “The value of a reward that motivates and makes a strong impression on an hourly customer service worker may not make the same impression with the owner of an automotive dealership. The IRF’s new study helps incentive professionals identify the ‘sweet spot’ where the reward has the desired effect.”

The IRF surveyed 500 full-time employees or channel partners eligible for non-cash rewards programs within their organizations. The respondent base represented a wide range of salaries, and included retail sales associates, insurance agents, financial advisors or consultants, and operations, IT, and administration professionals. In addition, qualitative interviews with incentive program owners were conducted to gain a deeper understanding of how they currently determine reward values.

Key insights reported in Non-Cash Value Perception: Identifying the Tipping Point include:

• In all scenarios, as reward value increases, the percentage of participants reporting their willingness to engage in a program and exert extra effort to achieve its goals also rises – until a certain threshold is reached.
• When asked to suggest a reward value that would entice them, respondents often listed higher amounts than they later indicated as motivating when presented with actual values.
• While the majority of financial advisors/consultants and insurance agents choose to participate in incentivized reward programs, many who opt out do so for reasons other than reward value.
• In a top performers scenario, channel program participants’ expectation of the reward value was 32% higher than that of employee program participants.
• Non-value related factors can greatly enhance a program’s appeal, including personalization, clarity and achievability of objectives, and variety and flexibility in reward offerings.

View or download a copy of the study at the Non-Cash Value Perception: Identifying the Tipping Point webpage.

Thank you to our Research Advocacy Partner

Maritz transforms human potential into extraordinary performance. Tap into what truly moves your people, through incentives and reward solutions that inspire greatness across your entire business, customer-base and business ecosystem. From immersive travel experiences to premium merchandise, digital rewards to points-based programs, leading Fortune 500 companies rely on Maritz’s rewards, as well as behavioral science expertise and sophisticated tech to design, deploy and measure programs that create moments that matter and lasting business success. Find out more here.