A recent study was conducted by the Incentive Research Foundation (the IRF 2020 Top Performer Study) in which they focused on the effects of incentive programmes within the Technology sector. The purpose of the study was to get an understanding of how incentives and rewards differentiate the most successful companies from others
The study included 153 participants, all of whom played a key role in overseeing the execution of incentives programs of technology companies, earning at least $100M in revenue. The technology sector represented 38% of the total top performer sample of 400 companies (Top Performers – those companies that experienced more than five percent revenue growth within the past year, was one of the requirements)
Results for the technology sector, most noticeably top-performing tech companies, showed that the level of support for reward and recognition programs have increased significantly year on year and suggests that more technology executives recognize the importance and the role of incentives as a competitive advantage.
The 2020 Technology Top Performer Study portrayed a very positive outlook for non-cash rewards and incentive travel. The study showed high levels of engagement, support, and spend with non-cash incentives among top-performing technology companies.
The data also showed that the qualification criteria is changing as well. More than 80% awarded incentive trips were based on reaching some pre-defined criteria rather than being chosen by a selection committee. Programs are more motivating if people know what they need to do to qualify for incentive opportunities and have both clarity and certainty about earning awards.
The study showed that Comparator companies were, in many cases, increasing their investments in incentives as well. While the use of non-cash incentives was likely not the sole cause of corporate success, there was a very clear relationship between the two. As companies achieved success in areas such as profitability, customer satisfaction, and employee engagement, they furthered this success through the implementation of successful reward strategies.