An Incentive Research Foundation study shows how automotive and manufacturing companies use rewards to fuel growth, loyalty, and culture
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When it comes to motivating people, the automotive and manufacturing sectors are putting the pedal down. According to the Incentive Research Foundation’s (IRF) 2025 Top Performer Study: Automotive & Manufacturing Industries, companies that consistently hit revenue and retention benchmarks share one thing in common: they invest in rewards and recognition that go far beyond cash.
Of 159 companies surveyed, just 24% qualified as “top performers.” What set them apart? Their rewards programs weren’t just bigger — they were smarter, more flexible, and more deeply tied to leadership support.
The Executive Buy-In Advantage
Nearly 80% of top performers rated executive support for rewards programs as excellent — more than 20 percentage points higher than the rest of the pack. That means leaders weren’t just signing off on budgets; they were actively championing recognition as part of corporate culture. For incentive planners, that’s a reminder: the best-designed program won’t move the needle if it doesn’t have visible support from the top.
Flexibility Wins
In an era of choice overload, top performers doubled down on participant flexibility. Seventy-four percent emphasized choice in merchandise and gift programs, while 57% prioritized flexibility in incentive travel. Attendees today want to curate their own rewards — whether that’s picking from a catalog or choosing between a luxe getaway or a family-friendly trip.
The Power of Incremental Targets
Top-performing firms were 25–30% more likely to structure programs with incremental milestones, especially in sales and employee rewards. Instead of dangling a single high bar at year’s end, they broke goals into achievable steps. The psychology here is simple: steady progress fuels motivation, while “all-or-nothing” challenges risk disengagement.
Spending Where It Counts
Budgets told another story. On average, top performers spent nearly $2,000 more per person on sales incentive trips than their peers — and nearly $2,500 more on non-travel rewards. That’s not frivolous; it reflects a belief that meaningful recognition is an investment in retention and performance.
Further Reading: Inside the 2025 IRF Study on Incentive Travel and Performance
Lessons for Planners Beyond the Factory Floor
While the study zooms in on automotive and manufacturing, the lessons travel well. Whether you’re motivating sales teams in tech or recognizing service milestones in finance, the message is clear: programs thrive on leadership buy-in, participant choice, clear progress markers, and meaningful investment.
The study, supported by IRF Research Advocacy Partner Maritz, is part of the IRF’s broader Top Performer Series, which will roll out additional benchmarks for financial services and technology. For incentive planners, it’s both a benchmarking tool and a blueprint: if you want to move your own programs from “good enough” to “high performing,” it’s time to think less about transactional bonuses and more about experiences that shape culture.
Any thoughts, opinions, or news? Please share them with me at vince@meetingsevents.com.
Photo by Sara Kurfeß on Unsplash
