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Research / The IRF 2025 Top Performer Study: Technology Industry
by Incentive Research Foundation
In the spring of 2025, the Incentive Research Foundation revisited its Top Performers Study to address a probing question in motivation and engagement: What do high-performing companies do differently with their reward and recognition programs? Drawing on response data from decision-makers, this segment of the study focuses on the technology industry, where rapid innovation, intense competition for talent, and shifting market demands require effective engagement strategies to remain on pace with competition.
Success in the technology industry thrives on speed, creativity, and specialized expertise, requiring organizations to constantly evolve how they motivate and retain talent. In this environment, examining the practices of top-performing companies reveals how reward and recognition programs can be leveraged to sustain engagement and drive results. These companies demonstrate that strategic recognition not only reinforces performance but also strengthens adaptability and collaboration across fast-changing markets. Using high-achieving organizations as a model for program design provides others with the opportunity to refine their own reward and recognition strategies to remain competitive.
The 2025 Top Performers Study surveyed 600 reward and recognition decision-makers, including 109 from the technology sector. Respondents hold significant influence over the design, funding, and execution of their organization’s programs. They represented technology companies operating at scale, all reporting annual revenues of $100 million or more, with 88% employing 500 or more people. Employee programs were the most commonly offered, included in 94% of companies. Sales incentive programs (78%) and channel partner initiatives (66%) were also frequently provided.
While the scope of the project reflected a broad representation of the incentive industry, its primary purpose was to examine what differentiated top-performing companies from others. A defined set of criteria including revenue growth, achievement of performance goals, customer trends and employee or partner attraction and retention was used to establish the standard that set high-achieving organizations apart. Top Performers were identified as those that:
Companies that did not meet this full set of performance indicators were categorized as Comparators. This segmentation provided a practical and data-driven lens for analyzing the reward and recognition practices that aligned with stronger business outcomes. Among all respondents in the technology industry, 31% qualified as Top Performers, while 69% were designated as Comparators.
High-performing technology companies take a collective approach to supporting their reward and recognition programs. Nearly all Top Performers (94%) report strong collaboration in program design. While Comparators also emphasize cross-departmental communication (71%), this near-universal focus among Top Performers underscores collaboration as a cornerstone of successful program design. As a result, 68% of Top Performers report excellent alignment with corporate goals, and 76% indicate strong executive support for their reward programs, roughly 15% higher than other organizations.
This collective approach extends to program resourcing and effectiveness. Top Performers are 16% more likely to report excellent budget support, 18% more likely to view their programs as effective engagement tools, and 12% more likely to consider them effective retention drivers. By aligning collaboration, executive backing, and resources, successful companies position their reward programs to consistently drive engagement, reinforce organizational priorities, and deliver measurable impact.
High-achieving technology organizations design reward programs with a central focus on sustaining motivation and engagement for as many participants as possible. While Top Performers employ a variety of successful approaches, 41% emphasize inclusivity in qualification criteria, creating programs that recognize and reward each participant, nearly double the frequency of other organizations. This inclusive approach aims to ensure broad engagement, foster a sense of value among participants, and maintain momentum throughout the program.
Top Performers also use discretionary recognition extensively, providing opportunities to acknowledge achievements beyond standard performance metrics. In employee programs, 74% of Top Performers offer discretionary rewards, nearly double the rate of Comparators. Channel partner programs follow a similar pattern, with 60% of Top Performers incorporating discretionary recognition, more than 35% higher than other organizations. Sales programs see lower usage, with 38% of Top Performers including discretionary rewards.
High-achieving technology organizations also design varied earning pathways that lower barriers to participation. Half of Top Performers indicate that salespeople and channel partners can earn rewards through multiple avenues, with some programs requiring no minimum thresholds. Comparators are less flexible, with only 33% options without a required quota for sales teams and just 16% for channel partners. This approach ensures more participants can engage early and consistently in the program.
Top Performers further enhance engagement through features that accelerate achievement and remove earning limits. Nearly 90% of their programs include a “fast start” component, providing immediate rewards to new participants, more than 25% higher than in Comparator programs. They also offer unlimited rewards for channel partners (80%) and sales personnel (75%). Comparators match Top Performers for unlimited rewards in sales programs but provide the same flexibility for only 59% of channel partners. These design elements collectively maintain momentum, sustain engagement, and encourage ongoing high performance.
Top-tier technology companies approach reward design with a clear focus on participant experience. Within merchandise and gift card rewards, 64% of Top Performers prioritize perceived value, 58% emphasize flexibility, and 42% highlight participant preferences, consistently placing these qualities above what Comparators value. At the same time, factors such as cost, emotional connections, and physical reminders receive far less emphasis, signaling a deliberate focus on meaningful and motivating rewards.
Incentive travel rewards share some priorities with merchandise, such as perceived value (48%) and participant preference (39%), while considerations such as cost and physical reminders remain low priorities. However, Top Performers set travel apart by emphasizing unique experiences, with 55% ranking this as their top goal. Additionally, 39% aim to create emotional connections to destinations, over 35% higher than Comparators.
These patterns illustrate that Top Performers design rewards with a participant-centric mindset, prioritizing qualities that make recognition personally meaningful and memorable. By emphasizing flexibility, perceived value, and experiences that resonate emotionally, these companies create programs that engage participants more deeply and drive stronger motivation. This focus on what matters most to recipients helps Top Performers differentiate their programs, fostering lasting impact and reinforcing desired behaviors across the organization.
High-performing technology companies demonstrate that reward impact depends on strategic allocation in addition to total spend. For non-travel rewards, Top Performers place particular emphasis on sales programs, delivering both higher average and median values to top sales contributors than other organizations. Channel programs show similar average values but higher medians, reflecting more consistent recognition of high-achieving participants. Top Performers also allocate a greater portion of their budget to sales and channel partner rewards compared with employee programs.
In incentive travel, Top Performers provide higher-value trips for sales team members and channel partners than for employees. Within travel programs, budget allocation between sales and channel programs is relatively balanced. Notably, the average incentive trip reward for sales participants is over $4,000 higher than Comparators, highlighting the premium placed on driving performance in this group.
Overall, Top Performers emphasize the strategic value of incentive travel and non-travel rewards for top-performing participants. This approach signals where organizations see the greatest return on investment. By allocating budgets thoughtfully, Top Performers enhance program effectiveness, sustain engagement, drive performance, and ensure that reward investment delivers measurable results.
The 2025 Top Performers Study shows that leading technology companies approach reward and recognition programs as strategic tools rather than routine initiatives. These organizations emphasize collaboration and corporate alignment to craft programs that become effective components in spurring engagement and retention within the company. They also focus on the participant experience, prioritizing flexibility, perceived value, and relevance. Merchandise, gift card, and incentive travel rewards are tailored to participant preferences, emphasizing unique experiences and emotional engagement. This approach continues to strengthen motivation and makes recognition more memorable and impactful.
Successful technology organizations also expand opportunities for participants to earn rewards. Programs include inclusive qualification criteria, discretionary recognition, milestone-based achievements, fast-start incentives, and uncapped rewards. These features help participants engage early, maintain momentum, and sustain high performance over time across sales, channel, and employee programs.
For Top Performers, reward value is allocated with intention. They provide higher-value rewards to the contributors who drive the greatest impact, particularly sales and channel participants, while maintaining strategic investments across program types. This intentional allocation ensures both non-travel and incentive travel rewards maximize motivation, reinforce key behaviors, and deliver measurable business outcomes.
For technology companies aiming to strengthen engagement and performance, Top Performers offer a clear blueprint. Success comes from intentionally designing programs that align with business priorities, securing active leadership support, and fostering collaboration across teams. Rewards should be flexible, personally meaningful, and focused on experiences that matter to participants. When executed thoughtfully, these programs become more than recognition; they reinforce culture, motivate top talent, and drive sustained results in a fast-moving, competitive industry.
Benchmarks and best practices employed by top performing companies to influence performance, shape culture, strengthen partnerships, and retain top talent using non-cash rewards
Top financial services and insurance companies distinguish themselves by making reward and recognition programs strategic, adaptable, and continuously improved to align with business goals and employee preferences.
