Incentive programs are a proven strategy for driving employee engagement, motivation and performance. However, determining the right reward value — one that maximizes participation without overspending — remains a key challenge for many organizations.
A recent study by the Incentive Research Foundation (IRF), Non-Cash Value Perception: Identifying the Tipping Point, examines how employees perceive the value of non-cash rewards such as travel, merchandise and gift cards.
The research highlights that while increasing reward value generally boosts motivation, there is a threshold where additional increases have diminishing returns. Understanding this ‘tipping point’ allows organizations to design incentive programs that are both effective and cost-efficient.
Key Findings from the IRF Study
The study surveyed 500 employees and channel partners eligible for non-cash rewards programs, providing the below insights into how reward value impacts engagement:
- Engagement rises with reward value (up to a point): Employees report greater willingness to participate as reward values increase, but after a certain threshold, the effect plateaus.
- Perceived vs. actual motivation: Respondents often overestimate the reward value they believe would motivate them compared to what actually does.
- Non-monetary factors matter: Personalization, variety, achievability and clarity of objectives play a significant role in making an incentive program appealing.
For organizations leveraging travel-based incentives, these insights highlight the importance of strategic program design. At Atlas Travel’s Meetings & Incentives (MICE) division, we partner with companies to build effective, tailored incentive programs that balance value with participant engagement.
Our Great Escape Awards provides a flexible, customizable approach, allowing organizations to offer personalized travel experiences that align with employees’ diverse preferences. Similarly, our group incentive travel services create memorable experiences that not only reward top performers but also strengthen team connections.
Atlas Travel’s MICE division combines decades of expertise in corporate meetings and incentive travel to help organizations develop effective, result-driven programs. By leveraging industry insights and best practices, we ensure incentive travel remains a powerful motivator — driving performance while maximizing return on investment.
Interested in learning more about Atlas Travel’s incentive programs? Contact Jennifer Murphy at jennifer.murphy@atlastravel.com.
