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IRF Top Performer Study: Engagement Takes a System
Study Methodology
Key Findings
This analysis of high performing companies confirms research published by the Incentive Research Foundation nearly 25 years ago: Incentives, Motivation, and Workplace Performance. Both studies find that engagement efforts generate the best results when they are strategically aligned with business goals; have top management support; implement scientific rules design and reward selection, and leverage technology. Still missing from the discussion: a comprehensive approach to impact measurement.
Study Methodology 
As explained by the IRF, the study included 600 participants, all full-time employees based in the US 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 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 organization explains.
The research 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.
The responses were organized by top performers or “comparators” based on the responses of participants. Among all respondents, 22.5% qualified as Top Performers, while 77.5% were designated as comparators. Top performers:
- Achieved revenue growth over the past year
- Met or exceeded the majority of their performance goals
- Maintained or expanded their total customer base over the past year
- Were highly successful in acquiring new customers
- Retained most of their customers year-over-year
- Maintained or increased their number of employees over the past year
- Consistently attracted high-performing professionals
- Held a strong reputation as an employer of choice for top talent
Key Findings
1. Top Performers Strategically Align Reward Programs to Business Goals and Brand Identity
These companies are deliberate in how they connect reward programs to broader business strategy.
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2. Top Performers Receive Strong Executive Support
Support for reward and recognition programs among Top Performers is both widespread and deeply embedded. Nearly all (99%) report strong executive backing.
3. Top Performers Utilize Cross-Functional Collaboration to Strengthen Reward Strategies
Collaboration is key; 93% of top performers say their programs benefit from collaboration across multiple departments.
4. Top Performers Are More Effective at Leveraging Reward Programs for Employee Recruitment and Retention
Incentives and recognition play a significant role in driving the recruitment and retention of employees, according to the study. 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 differentiate themselves from competitors and make their workplace more appealing to potential hires.
5. Top Performers Prioritize Flexibility and Personal Relevance in Their Rewards
These 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.
6. Top Performer Programs Spur Early Momentum and Ongoing Progress
These companies more likely tuse 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.
7. Top Performers Include Both Performance Metrics with Customer Relationship Measures
The top performing companies 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.
8. Top Performers Balance Recognition with Flexibility
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).
9. Top Performers Invest in Higher Value Rewards
The best performing firms allocate significantly higher-value rewards across both travel and non-travel programs, the study finds. 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.
10. Top Performers Treat Technology and External Partners as Strategic Assets
These companies more consistently leverage technology and external expertise than comparators. These investments reflect the high rates of executive and budget support. Top performers utilize technology to maximize the effectiveness of their reward programs, with 50% saying they consistently leverage technology, versus 42% for comparators.
Enterprise Engagement Alliance Services
Celebrating our 16th year, the Enterprise Engagement Alliance helps organizations enhance performance through:
1. Information and marketing opportunities on stakeholder management and total rewards:
ESM Weekly on stakeholder management since 2009; click here for a media kit.
RRN Weekly on total rewards since 1996; click here for a EEA YouTube channel on enterprise engagement, human capital, and total rewards insights and how-to information since 2020.
2. Learning: Purpose Leadership and Stakeholder
Management Academy to enhance future equity value and performance for your organization.3. Books on implementation: Enterprise Engagement for CEOs and Enterprise Engagement: The Roadmap.
4. Advisory services and research: Strategic guidance, learning and certification on stakeholder management, measurement, metrics, and corporate sustainability reporting.
5. Permission-based targeted business development to identify and build relationships with the people most likely to buy.
6. Public speaking and meeting facilitation on stakeholder management. The world’s leading speakers on all aspects of stakeholder management across the enterprise.
