New Incentive Rewards Research: Evolving Budgets & Trends

Incentive rewards continue to shape engagement, loyalty, and performance across industries—and their popularity is only increasing, according to new data from the Incentive Research Foundation (IRF).

The IRF’s latest study highlights that gift cards are the most popular reward for incentive programs of all shapes and sizes. Companies across the board are also increasing their reward budgets. 

In this article, we’ll explore how incentive rewards are changing, and how you can use this new research can help to develop or refine an incentive program in the coming year.

The state of non-cash incentive rewards in 2025

If you’re planning any type of customer or employee incentive program in 2025, one thing is clear: your colleagues are using and getting real results from non-cash incentives in general, and gift cards in particular.

According to the IRF’s “Industry Outlook for 2025: Merchandise, Gift Cards and Event Gifting,” gift cards top the list of preferred non-cash incentives. This study surveyed over 400 industry professionals across North America and Europe—who spend their workdays fine-tuning reward strategies, managing employee engagement budgets, and helping their organizations to meet short-term and long-term company goals.

And the proof is in the pudding: gift cards make up the largest cohort of non-cash incentives (at 43%), gift card program retention is steadily increasing, and 55% of respondents are expecting growth in their gift card programs heading into 2025.

While types of rewards like merchandise and events still have their place, it’s gift cards that consistently deliver the goods: broad appeal, easy digital delivery, and the personal choice that recipients love.

That’s why, as we approach 2025, digital rewards and payouts remain a reliable, scalable, and highly impactful option in the incentive toolbox.

Monetary vs non-monetary rewards

While monetary incentives have their place, non-cash incentive rewards (like gift cards) keep proving their staying power.

Whether you’re looking to boost company culture and employee recognition, improve your social media referral program, attract top talent, empower your sales team, or another specific goal, gift card rewards offer similar benefits of cash rewards, with extra perks for businesses and their recipients (more on this below).

And like IRF research makes clear, gift cards and other non-cash, more tangible rewards feel special and are genuinely appreciated by recipients.

Strategic alignment with financial priorities

The IRF’s findings show that budgets are on the upswing—a great signal of the success that gift card programs are finding.

In North America, 59% of organizations expect their reward and recognition spending to grow in 2025.

The study also highlights that organizations are moving beyond simple beyond simple giveaways and company swag. Organizations aren’t just handing out rewards; they’re choosing amounts and formats that serve bigger business goals.

Indeed, many now view incentive rewards as a way to support performance targets, strengthen financial health, and encourage the behaviors that drive results over the long haul.

This approach puts every decision—from the choice of gift card to the final spending level—under a strategic lens. Instead of going for whatever’s easiest, smart businesses now pick rewards that fit neatly into their overall plans. By making sure incentives align with financial objectives, companies transform reward programs from a “nice-to-have” into a strategic investment.

Clear data: how much to spend on incentive initiatives now

According to the IRF, most gift card programs in North American now spend between $100 and $500 per recipient. Channel programs lean toward higher-value gift cards (averaging around $180), while many employee programs stay closer to the $25–$100 range.

Meanwhile, Europe is trending to even higher gift card denominations. Average values have jumped to €182, and gift cards worth €200 or more are becoming the norm, suggesting that European organizations see a strategic advantage in going bigger with their incentives.

Of course, it’s natural to want to use other organizations to benchmark your own spending. But when developing any type of incentive program, it’s more important to set a budget that aligns with a host of considerations: employee needs, company culture, organizational goals.

In other words, the amount you need to spend to reward employees and/or incentivize sales will likely be unique to your organization. Keeping track of your program metrics can provide insight.

It’s not just about handing out bigger rewards—it’s about choosing the right amounts that keep everyone engaged and motivated, and making every reward dollar—or Euro—count.

Why gift cards are the dominant incentive reward type

Clearly, gift cards have established themselves as the go-to choice in today’s incentive and public recognition landscape.

Specifically, according to this new survey, gift cards have the biggest share of all non-cash incentives in North America. In Europe, the trend is even more pronounced, with denominations climbing and higher-value cards becoming even more common.

Larger gift card amounts in particular reflect a growing confidence that well-placed rewards can truly drive employee morale, hard work, and job satisfaction.

Gift cards also streamline administration. Survey respondents note that they’re easier to deliver and manage than merchandise, and don’t involve the logistical tangles that come with keeping inventory.

Many respondents further see gift cards as more flexible and personal than other non-cash rewards, since recipients can pick their own preferred brands or items.

Put simply, gift cards adapt easily to changing preferences and new markets. They give recipients the freedom to choose what’s most valuable to them and give organizations a stress-free way to handle large-scale reward programs.

Bonus: Assuming you work with the right gift card distributor, there are also financial incentives to using gift cards in your rewards programs. For example, Giftbit offers bulk savings and even profit sharing for your gift card programs.

Reach out to learn how a customized program can help you reach your desired outcomes, whatever they may be.

Implications for organizations building recognition programs

These new insights from the IRF study highlight a clear path forward. With gift cards solidifying their position, spending levels stabilizing, and technology investments on the rise, the climate supports building a thoughtful incentive rewards program.

So what is a thoughtful incentive rewards program?

• It’s one that lets you collect your own data, through real-time gift card tracking and reporting.

• It’s one that lets you choose gift cards from an exhaustive rewards catalog of the world’s most popular retailers and restaurants.

• It’s one with high-touch support for both you and your recipients.

• And it’s one with integrations and a gift card API that make it easy for to streamline your program within your existing apps and workflows.

In short, the right gift card platform will take the legwork and the guesswork out of your incentive programs, helping to fuel employee performance, wellness programs, corporate gift programs, or whatever other incentive ideas you might have.

As budgets rise and technology gets smarter, it’s clear the market is settling in for long-term growth and sustainability. By selecting denominations that sync up with your organizational goals, tapping into advanced tools to manage distribution, and staying open to market shifts, you’ll be able to create a total rewards strategy that truly resonates.

Giftbit makes it easy to manage and optimize rewards and reimbursements.

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