The Incentive Research Foundation’s 2026 Trends Report gives a clear read on where rewards and recognition are heading: budgets are tight, logistics are unpredictable, and the programs that work are built with intention. Here are the incentive program trends our team is watching, along with a few thoughts on what each means for the companies running incentive and recognition programs.
Flat Budgets, Sharper Design
The IRF found average spend per person rose just 4% to $5,100, and a quarter of buyers expect to trim per—person spending in 2026. But flat budgets do not have to mean weaker programs. The pressure is pushing organizations to invest in what actually changes behavior rather than spreading dollars thin across everyone-opting instead for fewer gifts with higher values and targeted rewards that provide meaningful, practical value.
Curation Over Endless Choice
Merchandise spending climbed in 2025, with North American programs averaging $276 every time a reward is earned. The shift is less about catalog size and more about relevance.
When it comes to rewards selection, value is shifting away from an abundance of options and more toward thoughtful curation – where tailored reward selections matter more than millions of undifferentiated choices.
Logistics Costs Versus Reward Value
Rising costs rank as the industry’s top challenge, and a third of organizations reported transportation issues affecting their programs. How a program absorbs those costs matters.
“As trade volatility and escalating freight costs continue to pressure incentive economics, leading programs are separating logistics expenses from reward value to preserve participant perception and engagement.”
President & CEO, QIC
Gift Cards Keep Gaining Ground
Nearly 70% of North American organizations expect to use more gift cards, with practical categories leading the way – dining cards (54%) overtook online-only retailers in popularity. Gift cards earn their place through flexibility, though they work best alongside curated merchandise and recognition rather than as a default.
AI with a Human Core
Adoption is everywhere, with 93% of incentive professionals using tools like Claude or ChatGPT. AI speeds up administration and program communications, but recognition only lands when the message feels genuine. Leveraging this technology to handle more routine work so teams can focus their attention on the human element is improving program quality.
Leaning on Partners
Among top-performing companies, 41% strongly agree they look to outside partners for incentive and recognition expertise, compared with 34% of their peers. As programs get more complex to design and run, that gap is worth noting.
These trends point in the same direction: The programs that succeed in moving forward will be those that are flexible and designed with this data in mind. We will keep watching how the year unfolds, and provide updates on incentive program trends when key developments emerge.
