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Research / Top 10 Things Top Performing Companies Do Differently
by Incentive Research Foundation
As organizations continue to navigate an ever-evolving work environment, non-cash rewards and recognition programs have become essential tools for influencing performance, shaping culture, and retaining top talent. More than ever, program leaders are expected to deliver meaningful recognition experiences that go beyond compensation, resonating personally with participants, reinforcing business objectives, and supporting long-term engagement.
To support this need, the Incentive Research Foundation relaunched its Top Performers Study in the spring of 2025. Previously established as a benchmarking tool, the Top Performers Study was designed to answer a simple but powerful question: What do high-performing companies do differently with their reward and recognition programs? The most recent edition was conducted in 2020, analyzing data collected prior to the COVID-19 global pandemic. Since then, businesses have embraced significant changes, including increased remote work, changing business cultures, new technologies, and a sharper focus on recognition and well-being. Non-cash rewards have reemerged as critical levers for motivation, but with new pressures around personalization, flexibility, and strategic impact.
Rather than a year-over-year comparison, this iteration of the Top Performers Study serves as a refreshed snapshot of what top-performing companies are doing now. Drawing from a comprehensive survey of reward decision-makers across industries, the research highlights how these companies leverage thoughtful program design, integrated delivery, and intentional strategy to influence behavior and strengthen their organizations. The findings provide an updated overview of common practices among top-performing companies and offer those looking to improve their own programs clear areas for focused change.
The study included 600 participants, all full-time employees based in the United States with significant influence over incentive reward and recognition programs at companies generating at least $100 million in annual revenue. Respondents ranged in age from 23 to 65, with 61.5% identifying as Gen Z or Millennials and 38.5% as Gen X or Boomers. A broad cross-section of industries was represented, including focuses on automotive and manufacturing, financial services, and technology. Nearly 80% of respondents work at large corporations with 500 to 4,999 employees, with additional representation from both smaller businesses and enterprise-level organizations.
The research also captured a wide variety of program types. Employee reward programs were the most common, implemented by 95% of participating organizations. Sales incentive programs were used by 83%, while 49% of respondents supported channel partner recognition efforts. This distribution ensured that the findings reflected a diverse mix of program audiences and use cases.
Respondents meet the following criteria:
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. Respondents self-reported on a number of critical criteria, including revenue growth, achievement of performance goals, customer trends, and employee attraction and retention. 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, 22.5% qualified as Top Performers, while 77.5% were designated as Comparators.
Top Performers are deliberate in how they connect reward programs to broader business strategy. All Top Performers rate their program alignment to corporate goals positively, with 59% identifying alignment as ‘excellent’ (nearly 10% higher than Comparators). They are also more likely to view their incentive structure as an authentic expression of company culture and values. Among Top Performers, 95% agree that their programs represent the organization’s identity, with 54% in ‘strong’ agreement (12% higher than other companies). These findings suggest that high-performing organizations design their programs with clear intent to reinforce core priorities and drive aligned behaviors.
Support for reward and recognition programs among Top Performers is both widespread and deeply embedded. Nearly all (99%) report strong executive backing. This supports stronger perceptions of effectiveness. Among Top Performers, 64% rate executive support as ‘excellent,’ 10% higher than Comparators. Staffing receives similarly high marks from top-performing companies, also receiving 64% ‘excellent’ ratings, compared to 54% for others. Budget assessments follow the same pattern: 62% of Top Performers provide top marks for their program funding, while only 47% of Comparators share the same opinion. With engaged leadership, these programs exhibit strong foundational components.
Collaboration is key, and 93% of Top Performers say their programs benefit from collaboration across multiple departments. Comparatively, just 65% of Comparators report similar cross-functional involvement. These high rates of collaboration often reflect a company’s program alignment to corporate goals and executive support discussed above.
For all program types, collaboration scored at 90% or above for Top Performers. Channel programs reported the highest rate of collaboration (97%), which is notable since servicing the channel in general takes coordination among different groups and programs may require customization based on the varying channel.
Incentives and recognition play a significant role in driving the recruitment and retention of employees. For recruiting new talent, 94% of Top Performers indicate their use of recognition and rewards programs is a high-impact recruitment tool, compared to 81% in the comparator group. By incorporating non-cash rewards, companies can differentiate themselves from competitors and make their workplace more appealing to potential hires.
Employees who are effectively recognized and rewarded tend to be substantially more engaged and committed to their company, with 97% of Top Performers agreeing that reward programs are a powerful retention tool (88% for Comparators). A meaningful reward – whether it’s a group incentive trip, gift card for a special splurge, or a personalized gift – can generate an emotional impact and enduring appreciation of the company. Top performers focus on using rewards programs to help build a positive organizational culture, improve overall job satisfaction, and reduce turnover.
Top-performing organizations stand out for how deliberately they design reward offerings. Instead of defaulting to the easiest or most cost-effective options, they prioritize flexibility, emotional impact, and alignment with participant preferences. Nearly all Top Performers offer gift cards (94%), points-based rewards (93%), travel (93%), and merchandise (79%), outpacing Comparators across the board. Their top design priorities include perceived value, participant flexibility, and providing unique experiences. While many programs emphasize inclusivity and broad appeal, some Top Performers also use exclusivity strategically to heighten competition. The most significant differences were in the use of award points and merchandise, rewards that offer flexibility, high perceived value, and therefore scalability. These variations in approach reflect a key insight of this group: successful programs are not rigid or uniform but tailored to organizational goals and participant needs.
Top Performers are more likely to use design features that engage participants early and keep them motivated over time. Many use “Fast Start” incentives (89% of sales and 83% of channel programs) to help participants begin earning quickly. Tiered reward structures are also more common among Top Performers, used in 90% of sales and channel programs and 88% of employee programs, providing clear milestones that encourage continued effort.
High-achieving companies tend to also offer more flexible qualification thresholds for non-travel rewards. Compared to Comparators, Top Performers are more likely to let participants earn rewards from the first sale or after reaching a minimum threshold. For example, 16% of Top Performers let sales reps earn from “dollar one” versus just 6% of Comparators. In channel programs, 25% of Top Performers allow immediate earning compared to 8%, and 40% offer mixed models.
At the same time, Top Performers set higher bars for top-tier rewards: for incentive travel, they are more likely to require performance above quota (38% in sales, 43% in channel, and 22% in employee programs). When earning the trip is focused on going above quota, program owners are in a better position to defend budget spent on the trip. This blend of accessible entry points and aspirational goals helps sustain motivation across a broad range of participants.
Top Performers take a more holistic approach to qualifying participants for reward programs by emphasizing a broader range of performance indicators. In particular, the inclusion of customer relationship metrics alongside financial and activity-based measures is more common among high-performing organizations. In Sales programs, 88% of Top Performers consider client satisfaction and retention measures to determine reward eligibility, compared to 78% of Comparators. A similar pattern holds in Channel programs, where 95% of Top Performers reference customer relations, far exceeding the 81% reported by Comparators. These measures also serve as the primary consideration in Top Performing employee programs. By expanding the definition of performance, these organizations create reward strategies that reflect company identity and support the overall health of the business.
Top Performers award both travel and non-travel rewards to a comparable percentage of their salesforce, channel partners, and employees as Comparators. For example, on average, about 16% of sales representatives receive incentive travel in both groups (16.1% for Top Performers versus 15.5% for Comparators), while non-travel rewards are similarly common (33.7% versus 34.0%, on average). Channel and employee programs follow this pattern, with the only notable difference being in non-travel rewards for channel partners, where Top Performers distribute rewards to just over 33%, compared to just under 27% for Comparators. These results indicate that simply rewarding more participants does not necessarily lead to better program outcomes. Top Performers find the balance between inclusivity and exclusivity to influence behavior.
Simultaneously, high-achieving companies are more likely to be flexible in the number of participants selected for specific rewards. They adjust the number of qualifiers based on overall performance. For instance, 92% of Top Performers use variable winner selection for sales incentive trips, compared to 81% of Comparators. Similar differences appear in channel (92% versus 78%) and employee programs (89% versus 84%). This combination of broad recognition and adaptable qualification underscores that success comes from strategic program design, not just volume.
Top Performers allocate significantly higher-value rewards across both travel and non-travel programs. In sales programs, the average value of non-travel rewards, such as points, gift cards, and merchandise, awarded to participants exceeds $1,660 among Top Performers, compared to about $1,465 for Comparators. At the top end, sales participants can earn rewards worth over $4,250, far above the $2,950 maximum reported by Comparators.
Incentive travel shows an even greater gap. Among Top Performers, the average sales trip is valued at nearly $4,000, with top-tier trips exceeding $8,600. Comparators offer lower-value travel on both measures, with their top trips peaking at around $6,700.
This pattern holds in channel and employee programs as well. For channel partners, the highest-value non-travel rewards from Top Performers reach over $5,100, compared to just under $3,800 for Comparators. In employee programs, the difference remains meaningful even at lower values. High-achieving employees report top travel rewards valued at just under $3,600, while Comparators average just over $2,600.
Notably, employee programs tend to feature lower overall reward values compared to sales and channel initiatives for both Top Performers and Comparators. This is particularly evident in travel rewards, where many organizations strategically leverage local or regional travel opportunities. By doing so, they can extend meaningful experiences to a broader group of participants, capitalizing on reduced costs while still delivering memorable and motivating recognition close to home.
For Top Performers, these higher reward values are not just about increased spending. They reflect a strategic commitment to providing recognition that feels personal, desirable, and proportionate to achievement. High-achieving companies understand that when rewards are truly motivating, whether through their quality, perceived prestige, or relevance, they reinforce behaviors more effectively and drive greater engagement over time.
Top Performers more consistently leverage technology and external expertise than Comparators. These investments reflect the high rates of executive and budget support for Top Performers discussed earlier.
Top Performers utilize technology to maximize the effectiveness of their reward programs, with 50% of Top Performers indicating ‘strong agreement’ that they consistently leverage technology, versus 42% for Comparators. Recognition platforms offer efficiency, consistency, and enterprise-wide access. Technology is leveraged to enhance incentive travel programs, from making planning more efficient to enhancing personalization and engagement.
Top Performers also rely more heavily on external partners, with 41% in ‘strong agreement’ that they look to external partners for incentive and recognition expertise, compared to 34% for Comparators. High-performing companies often use external partners to integrate technology within their recognition and incentive programs. This includes third-party agencies, merchandise and gift card providers, and digital platforms for managing rewards. Incentive travel planners partner with Destination Management Companies (DMCs), Destination Marketing Organizations (DMOs), and third-party agencies to maximize opportunities at their destinations, work with trusted local contacts, streamline logistics, and gain access to unique experiences and resources that enhance the overall impact of the program.
The 2025 Top Performers Study reveals that high-performing companies differentiate themselves by embedding their reward and recognition programs deeply into their overall business strategy. These organizations ensure strong alignment between incentives and corporate goals while authentically reflecting their brand identity and culture. This alignment is supported by active executive sponsorship and cross-functional collaboration, which together create a solid foundation for program success. Rather than treating rewards as isolated perks, Top Performers view them as strategic tools to influence behavior and reinforce key priorities.
Top Performers also prioritize thoughtful program design that emphasizes flexibility, personalization, and ongoing engagement. Their programs include clear qualification paths that offer both early momentum and aspirational goals, maintaining motivation across diverse participants. They expand the definition of performance beyond financial metrics to include customer satisfaction and retention, ensuring that rewards recognize behaviors critical to long-term success. Moreover, these companies invest in higher-value rewards that are meaningful and desirable, reinforcing participants’ connection to the program and driving sustained engagement.
For organizations aiming to enhance their incentive strategies, the lessons are clear. Focus on designing programs that align closely with business objectives and company values. Secure strong leadership support and foster collaboration across departments to strengthen execution. Tailor rewards and qualification criteria to meet the needs and motivations of participants while maintaining a balance between inclusivity and exclusivity. Finally, invest in rewards that have real perceived value and emotional impact. By doing so, companies will create programs that not only motivate performance but also become integral to their organizational culture and long-term growth.
Benchmarks and best practices employed by top performing automotive and manufacturing companies to boost employee and partner performance.
Leading technology companies achieve superior engagement and business results by designing reward and recognition programs that emphasize collaboration, participant experience, inclusivity, and strategic allocation of high-value rewards to drive motivation.
