Reward forward: eternal, but evolving

Rewards are enduringly and universally reliable. But the way they’re given and used changes across generations and over time.
Rewards work. They always have. They are mutually beneficial for both customer and brand, or both employee and business. When a company makes an impact on the recipient, that will ultimately be reciprocated with appreciation and loyalty.
But are there certain rewards that work best? How are rewards changing? And do different generations have different preferences? Here are some insights from recent research.
Insight 1: There’s younger hunger for rewards
The Incentive Research Foundation (IRF) 2024 Trends Report1 noted that incentive programs and rewards are important and successful tools for retaining employees at all career stages, but particularly so for early career workers, who tend to change jobs more frequently. In fact, they found that after compensation, rewards and incentives were the next most effective ways to build loyalty.
Insight 2: Cash is kinger than ever
The IRF’s 2023 survey report, Generational Expectations of Incentives2, found that the most preferred form of reward – for all ages and income levels – is cash.
A quick disclaimer: by “cash,” we don’t literally mean “cash.” In fact, we discourage it. Money is a short-term motivator, and what it’s spent on is quickly forgotten. On the other hand, points or rewards with a cash value, which can be accumulated and redeemed, for example via a debit card, are more significant and memorable.
What’s interesting is that in South Africa those rewards are used, more and more, to supplement an income, and to buy essentials like groceries, petrol and data. That represents a change from twenty or thirty years ago when rewards, which were often things like appliances, were more aspirational. But it is an economic shift rather than a generational one – and reflects the value of helping people make ends meet, especially in difficult economic times.
References:
1: The IRF 2024 Trends Report (2024), theirf.org. Available at: https://theirf.org/research_post/irf-2024-trends-report/
2: Schweyer, A., Presslee, A. and Atefi, Y. (2023) Generational expectations of Incentives, Incentive
Research Foundation. Available at: https://theirf.org/research_post/generational-expectations-of-incentives-effective-rewards-for-a-rapidly-changing-workforce/