Maritz CEO: Steady Growth, Personalization, Data-Driven Insights, Program Design Lead Key Trends

During this time of year, RRN checks in with CEOs of leading incentive, recognition, and loyalty companies for their views of the year ahead that will be included in an annual market report in December. Along the way, we share input from some of those who have taken the time to provide a comprehensive response.

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By most estimates, St. Louis-based Maritz Inc. is the largest incentive, recognition, and loyalty firm in the US. So, for a view of the year ahead in the world of incentives, rewards, and recognition, RRN checks in with David Peckinpaugh, CEO, on his on what’s ahead.

RNN. What is your view about the state of market growth—fast, slow, none at all?

Peckinpaugh. We're observing a steady, sustainable growth in the incentive and recognition market, but with notable acceleration in areas emphasizing measurable impact and customized program design. Although the overall growth rate may not match the rapid pace of previous years, it's driven by a deeper understanding of the impact of these programs on business outcomes. Organizations are increasingly recognizing the power of strategic programs to drive performance, boost morale and ultimately achieve and accelerate business results.

This, coupled with the evolution of technology and data analytics, is contributing to the market's continued growth. The pressure on organizations to retain talent, grow revenues, and enhance loyalty in a competitive economy further fuels this demand, especially among high-growth sectors. Some companies may be prioritizing strategies like digital transformation or sustainability, but employee experience remains a top priority.

RRN. What are key trends in terms of what clients are looking for in solutions, pricing, demand for expertise or return on investment measurement, or any other observations you’d like to share about the market.

Peckinpaugh. Several key trends are shaping the incentives and recognition market:

Personalization: Clients are seeking highly personalized programs that cater to individual preferences and motivations. We’re seeing heightened interest in behavioral science as companies seek ways to ensure that incentives drive meaningful behavior change, especially in sales roles.
Data-Driven Insights: Organizations are increasingly relying on data analytics to measure the impact of their programs and optimize their strategies. Clients are placing a greater emphasis on measuring the ROI of their incentive programs, but focused on long-term returns rather than short-term profits.
Program Design: Clients are seeking partners with proven expertise who can advise on optimizing program structures rather than just administering rewards.
Experiential Rewards: Unique experiences and opportunities are gaining popularity as powerful incentives.
Generational Differences: Over the next few years, we will see large changes in the workforce due to Baby Boomers retiring and the influx of Gen Z. Organizations will need to adapt programs to cater to the values and preferences of this younger workforce (more personal, more digital, more connected to purpose).
Sustainability: A growing number of organizations are incorporating environmental strategies into their incentive programs, aligning with broader corporate social responsibility (ESG) goals. This is a passion point for Maritz.

RNN. Do you see more recognition companies moving into incentives?

Peckinpaugh. Recognition and incentive programs often work in tandem to motivate and engage employees. So yes, we've observed a trend of recognition companies expanding into the incentive space. This is primarily driven by client demand for integrated/holistic solutions and the increasing complexity of modern incentive programs. However, expertise in incentives requires a distinct approach: a deep understanding of sales performance, human motivation/behavioral science and incentive program design is crucial for success in the incentives market… and technology is not the sole solution but a great tool to help amplify and accelerate results.

RRN. What is your organization’s key focus for the coming year...or anything else you’d like to add.

Peckinpaugh. At Maritz, our key focus for the coming year is to continue driving innovation and delivering exceptional value to our clients. We're investing in advanced technologies, such as AI, to enhance our ability to personalize programs and measure their impact. One of our focus areas is crafting a diverse, compelling reward portfolio that meets the needs of a wide range of workforces by expanding beyond traditional incentives. By offering a blend of tangible, monetary, experiential, symbolic and business-building rewards, we create meaningful experiences that drive both immediate performance and long-term loyalty.

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