The IRF’s 2025 Trends Report: Gen Z’s influence, AI’s rise, and the cruise comeback
The Incentive Research Foundation’s (IRF) 2025 Trends Report reveals a seismic shift in how businesses are using rewards and recognition, driven by a younger workforce, tighter budgets, and the rise of artificial intelligence.
“Incentive programs are no longer a ‘nice-to-have’ but a ‘must-have’ for attracting and retaining top talent,” says Stephanie Harris, President of the IRF. “In 2025, we’ll see a dramatic evolution in these programs, reflecting changing demographics, economic realities, and technological advancements.”
Further Reading: Incentive Industry Outlook for 2025
- The Gen Z Effect: Millennials and Gen Z are now a dominant force in the workplace, and their values are reshaping incentive travel. Forget stuffy galas; think vibrant experiences with Instagram-worthy moments. Expect edgier music, mocktail bars, and a focus on personalized adventures that cater to their desire for authentic and shareable experiences.
- Budget-Friendly Rewards: Economic uncertainty is forcing incentive professionals to do more with less. Gift cards and merchandise are gaining popularity due to their flexibility and scalability. They allow companies to tailor rewards to individual preferences while staying within fluctuating budget constraints.
- Cruises Set Sail Again: After a pandemic-induced lull, cruises are making a comeback in the incentive travel arena. They offer a unique blend of destination hopping, all-inclusive convenience, and controlled costs, making them attractive to both attendees and planners. The ability to visit multiple locales without the hassle of repacking and the built-in entertainment options are key drivers.
- AI’s Growing Role: Artificial intelligence is poised to revolutionize the incentive industry. While still in its early stages, AI is being explored for everything from personalized reward recommendations to predictive analytics for program effectiveness. The focus in 2025 will be on understanding AI’s practical applications, ensuring data privacy, and navigating the ethical considerations of its use. Expect a surge in learning and experimentation as incentive professionals seek to leverage AI’s potential.
- Beyond the Report: While the IRF report highlights these top trends, it hints at a broader shift. Personalization, once a buzzword, is now a core expectation. Experiences, not just things, are the currency of appreciation. And data, driven by AI, is becoming the key to measuring and maximizing the return on investment of incentive programs. As the workforce evolves and technology advances, the incentive landscape will continue to transform, demanding agility and innovation from those who seek to motivate and reward their most valuable asset: their people.
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Photo by Katelyn Perry For Unsplash+
