Why incentive travel is topping the reward and recognition charts

Experts share generational expectations of incentives and how employees value incentive travel, paid time off, and more.

North American employees prefer incentive travel to five days of paid time off.
North American employees prefer incentive travel to five days of paid time off. Photo Credit: Adobe stock/ Antonioguillem

North American employees who have experienced incentive group travel in the past are significantly more likely to prefer it as a reward choice over paid time off work or a monetary gift, regardless of age or career stage.

This is according to insights from a recent webinar hosted by the Incentive Research Foundation (IRF), entitled Generational Expectations of Incentives. It examined the changing priorities of today’s workforce and which types of incentives and rewards motivate early, mid, and late career employees, using data from a recent survey of employees in North America.

It noted that incentive travel is becoming more of an exciting prospect for younger people in particular, with more survey respondents within that age group compared to others saying they would prefer a group travel incentive over five days of paid time off.

Zoe Chorpenning, senior account manager, client services at performance improvement provider One10, who previously worked at Salesforce and Microsoft, reflected on her incentive and rewards experiences at all these businesses. “With these group incentive travel trips you’re sent to an amazing location and they bring out the whole red carpet, “ she said. “These experiences are incomparable - you have the opportunity to network and be a few doors down from your VP of sales, to be with all these amazing people who are able to put a face to your name early on in your career, and to network with other top performers.”

The younger age groups

Coming out of those trips, she added, younger employees are more motivated than ever and want to be included in the following year's trips.

Morgan Crain, senior programme manager, reward & recognition at data security company Rubrik said elevated experiences continue to appeal across all age groups. “You’re not spending this type of money to roll out the red carpet for a trip like this unless you're getting married or you have some big milestone in your life that you're celebrating,” she said. “One-on-one time with company executives is invaluable - it enables [employees] to make that connection early on in their careers.”

IRF research also showed that people who had experienced incentive travel and ‘red carpet’ treatment and who had seen the resulting career benefits, rated this as the best reward. “Most of these red carpets, great destinations, group travels are reserved for the top, top performers, and that's exactly the group that’s most motivated by that,” said Allan Schweyer, chief academic advisor at the IRF. “But the younger ones, those in early-stage careers with lower incomes were also surprisingly drawn to this, even though they may not be able to qualify yet. But it was clear that this was something that they were very interested in qualifying for in the future so (incentive travel) acts as a motivator for that group as well.”

Types of programmes that appeal

The research also focused on which types of incentive programmes hold the most appeal. Schweyer outlined how people are increasingly drawn to programmes that offer relaxation and wellness, in pool or beach-side locations. “Design a programme where the meetings are condensed, where there’s lots of free time and where you can choose to do the activities - it’s a combination of the enticing and the optional,” he said.

Rubrik’s Crain said that as an end user, it is really important to take programme design into perspective, to consider what your leaders and attendees are looking to achieve from the trips, as well as assessing tax and financial implications.

“It’s important to find a balance, with networking, happy hour and a bigger celebration to activities ranging from time at a spa to going ziplining in the jungle, for example,” she said.