The incentives industry continues to see strong performance even as post-pandemic volume pushes start to level out. The demands of a changing workforce are creating an increasing demand for incentive professionals to boost engagement, build company culture, and motivate improved performance. As we enter 2024, incentive professionals are called to transform incentive programs with new rewards and experiences in a challenging economic environment.
**Increasing Importance of Incentives to Motivate Today’s Workforce **
As we begin 2024, incentives and recognition continue to be important tools for organizations. Leadership sees their value, employees are motivated by them, and the industry is positioned for a successful year.
According to the Incentive Federation, 84% of U.S. businesses spend $176 billion annually on award points, gift cards, trips and travel, merchandise, and experiential rewards to reward sales staff, employees, channel partners and customers. The _2023 Incentive Travel Index _reported that 53% of senior leaders consider incentive travel a “need to have,” 48% call it an “essential strategic differentiator,” and only 13% considered it an area to trim or cut.
In today’s competitive hiring environment, incentives are a strong differentiator in recruiting and retaining employees. Retaining talented employees was a primary reason behind incentive travel’s strategic importance, according to 90% of respondents in the 2023 Incentive Travel Index. Incentive and recognition programs are considered a key to culture building and are instrumental in bringing together a more dispersed workforce. The reach of these programs is also increasing, going beyond top performers to “move the middle” 60% of producers. However, in many cases, program expansion may mean increasing pressure on budgets.
The _Industry Outlook for 2024 _reports a net increase of 37% for budgets for merchandise, gift cards, and event gifting in North America. Growth is projected through 2025 for both the number of people participating in incentive trips as well as per-person spending, according to the 2023 Incentive Travel Index. However, these budget increases often do not keep pace with inflation.
The incentives industry continues to see strong performance even as post-pandemic volume pushes start to level out. The demands of a changing workforce are creating an increasing demand for incentive professionals to boost engagement, build company culture, and motivate improved performance. As we enter 2024, incentive professionals are called to transform incentive programs with new rewards and experiences in a challenging economic environment.
**Increasing Importance of Incentives to Motivate Today’s Workforce **
As we begin 2024, incentives and recognition continue to be important tools for organizations. Leadership sees their value, employees are motivated by them, and the industry is positioned for a successful year.
According to the Incentive Federation, 84% of U.S. businesses spend $176 billion annually on award points, gift cards, trips and travel, merchandise, and experiential rewards to reward sales staff, employees, channel partners and customers. The _2023 Incentive Travel Index _reported that 53% of senior leaders consider incentive travel a “need to have,” 48% call it an “essential strategic differentiator,” and only 13% considered it an area to trim or cut.
In today’s competitive hiring environment, incentives are a strong differentiator in recruiting and retaining employees. Retaining talented employees was a primary reason behind incentive travel’s strategic importance, according to 90% of respondents in the 2023 Incentive Travel Index. Incentive and recognition programs are considered a key to culture building and are instrumental in bringing together a more dispersed workforce. The reach of these programs is also increasing, going beyond top performers to “move the middle” 60% of producers. However, in many cases, program expansion may mean increasing pressure on budgets.
The _Industry Outlook for 2024 _reports a net increase of 37% for budgets for merchandise, gift cards, and event gifting in North America. Growth is projected through 2025 for both the number of people participating in incentive trips as well as per-person spending, according to the 2023 Incentive Travel Index. However, these budget increases often do not keep pace with inflation.
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