Rewards And Incentives Software Statistics 2025

In an increasingly competitive business environment, understanding the significance of rewards and incentives software is essential for organizations aiming to boost employee morale and performance. As companies pivot towards digital innovation and strategic employee engagement, the latest statistics on rewards and incentives software for 2025 provide a crucial lens through which we can comprehend these emerging trends. These insights are not only indicative of the current state of the market but also offer a predictive look into the future, equipping businesses with the knowledge needed to stay ahead of the curve.

For a multitude of stakeholders—including HR professionals, business leaders, and technology developers—these statistics are invaluable. Human Resource managers can leverage this data to refine their employee engagement strategies, ensuring that they are aligned with the latest trends and best practices. Similarly, business executives can utilize this information to make informed decisions that drive company growth and profitability. Technology developers, on the other hand, can identify gaps and opportunities for innovation within the market, propelling the development of cutting-edge solutions tailored to the evolving needs of businesses.

Ultimately, the data on rewards and incentives software for 2025 serves as a guiding compass for strategic decision-making in this dynamic industry. By analyzing and understanding these trends, organizations can design more effective strategies, foster a more engaged workforce, and maintain a competitive edge. This article delves into the specifics of these statistics, offering a comprehensive overview to help stakeholders navigate the complexities of the current and future business landscape.

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Top Rewards And Incentives Software Statistics 2025

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Employee Engagement And Retention

• Organizations that prioritize employee appreciation have workers who are 56% less likely to look for a new job. ^[?]
• 46% of employees have left a job because they felt unappreciated. ^[1]
• 91% of HR workers agree that recognition and reward positively affect employee retention. ^[1]
• Employees who strongly agree that their manager holds them accountable for their performance are 2.5 times more likely to be engaged in their jobs. ^[1]
• 71% of highly engaged organizations recognize employees for a job well done, compared to only 41% of less engaged organizations. ^[1]
• Employees who receive great recognition are 20 times more likely to be engaged than employees who receive poor recognition. ^[1]
• A well-designed recognition program can help drive an 11.1% increase in average employee performance. ^[1]
• 69% of employees would work harder if they felt their efforts were better appreciated. ^[1]
• 86% of value-based recognition programs show an increase in worker happiness. ^[1]
• 79% of employees believe that an increase in recognition rewards would make them more loyal to their employer. ^[1]
• 22% of managers strongly agree that their company provides them with the tools and understanding on how to recognize colleagues effectively. ^[1]
• Peer recognition can improve workplace performance by 14%. ^[1]
• The most memorable recognition often comes from an employee’s manager (28%), followed by a high-level leader or CEO (24%). ^[1]
• 24% of employees say their most memorable recognition came from the CEO. ^[1]
• 90% of HR respondents agreed that an effective recognition and reward program drives business results. ^[1]
• 51% of all employees want more recognition for their work, especially managers. ^[2]
• Almost 70% of employees who receive feedback twice a year or less say they would like more. ^[2]
• 81% of people in Glassdoor’s Employee Appreciation Survey say they would be motivated to work harder if their boss showed appreciation. ^[3]
• 79% of respondents want an agile recognition and reward platform for remote employees. ^[3]
• 50% of employees emphasized the significance of recognition from their peers, while 51% stressed the importance of recognition from their managers. ^[4]
• Companies that implement recognition programs and achieve high levels of employee engagement surpass their competitors by 147% in earnings per share. ^[4]
• 51% of employees are disengaged, while 13% are actively disengaged. ^[5]
• 63.3% of small businesses have more trouble retaining their workforce rather than hiring it. ^[5]
• Companies spend $2.9 million per day on hiring expenses. ^[5]
• Engaged workforces result in 23% more profitability and 66% better well-being compared to disengaged ones. ^[5]
• Absenteeism decreased by 27.5% after a company intervened to improve their team members’ engagement. ^[5]
• 25% of working Americans are considering leaving their current employer for a mental health break. ^[5]
• 84% of employees believe that engagement is the top priority for businesses that want to be successful and motivated. ^[5]
• 87% of employees feel that receiving necessary recognition plays a massive role in job satisfaction. ^[5]
• Only 16% of companies use technology to monitor employee engagement. ^[5]
• 87% of remote employees and 88% of hybrid workers agree that flexibility offers them the work-life balance they need. ^[5]
• 56% of leaders admitted that engaged workforces attain positive ROI. ^[5]
• The unhappiest and most disengaged professions are office, sales, and construction workers, with a mere 12% engagement rate. ^[5]
• Disengaged employees have a 45% increased chance of being stressed daily. ^[5]
• Only 22% of companies know the main reasons for their employee disengagement. ^[5]
• 90% of employees agree that showing empathy and compassion in the workplace is key to increasing employee retention. ^[18]
• 89% of employees with wellness programs are more engaged and happier with their jobs. ^[30]

Rewards And Recognition Preferences

• 44% of respondents prefer gift cards as rewards, while 41% prefer a paid trip with peers. ^[1]
• 54% of employees prefer a verbal “Thank you” for their day-to-day accomplishments, while 47% prefer growth opportunities for significant accomplishments. ^[1]
• 79% of employees want to stay longer with their employer if they receive gift card rewards. ^[6]
• More than 80% of employees prefer receiving a gift card as a reward from their employers. ^[6]
• 44% of respondents express a preference for gift cards, while 41% favor a paid trip as a reward. ^[12]
• 35% of survey respondents would seek new employment if the prospective employer offered better rewards and recognition. ^[6]
• 47% of employees want to receive a reward spontaneously. ^[7]
• Only 33% of employees prefer recognition to come in the form of gifts, nearly as many prefer to have their good work acknowledged. ^[11]
• 47% of employees find that new growth opportunities are a better way to reward them for their achievements. ^[7]
• 85% of employees believe management should reward employees for a job well done whenever it occurs. ^[7]
• 52% choose digital incentives over plastic prepaid cards so they can receive their reward faster. ^[9]
• 53% of employees want to receive more recognition from their immediate manager. ^[36]
• 29% of employees haven’t received recognition for good work in over a year. ^[11]
• Only 22% of project managers and 20% of people managers say they get recognized as much as other team members in their organization. ^[23]
• 28% of employees never receive recognition from the company CEO and executive team. ^[22]
• 36% of women never receive recognition from company CEOs and executives. ^[22]
• 63% of the employees wished that their colleagues told them “Thank you” more. ^[22]
• 64% of employees prefer a mix of public and private recognition. ^[23]
• 32% believe that public recognition enhances the way their coworkers engage with them. ^[23]
• 90% of workers noted that values-based, peer-to-peer recognition made them more satisfied with their work. ^[36]
• 47% of employees want to receive a reward spontaneously and 38% want to be rewarded for their good work. ^[36]
• 66% of employees would rather have two tickets to a concert of their choosing than three times the value of those tickets paid into their salary over the course of a year. ^[23]

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Impact Of Recognition Programs

• Companies with engaged employees typically see 23% higher profits and 18% higher sales productivity. ^[6]
• Companies that double the number of workers they recognize each week can expect to see a 24% improvement in work quality, a 27% reduction in absenteeism, and a 10% reduction in staff shrinkage. ^[11]
• Improving recognition by 15% can increase a company’s margins by 2%. ^[11]
• 40% of demotivated employees attribute their lack of motivation to a lack of recognition. ^[11]
• 62% of employees say they hardly ever or never receive recognition. ^[11]
• Managers are twice as likely to think they’re recognizing achievements as workers. ^[11]
• 22% of senior decision-makers don’t think that regular recognition and thanks influence staff retention. ^[11]
• Nearly half of employees said a “thank you” would make them feel more valued. ^[11]
• Peer-to-peer recognition is 35.7% more likely to have a positive impact on performance than manager-only recognition. ^[11]
• With an easy-to-use tool for giving recognition, 44% of employees give regular recognition to peers. ^[11]
• Nearly two in three leaders say their organization does not have a budget allocated to recognition. ^[11]
• 81% of business leaders do not feel that recognition is a major priority for their organization. ^[11]
• Globally, up to $7.8 trillion in productivity is lost each year due to low engagement of workers. ^[11]
• Companies with rewards and recognition programs showcase 14% higher levels of employee productivity, performance, and engagement compared to those without such programs. ^[12]
• Organizations with ongoing recognition programs experience 28.6% lower frustration levels than those without. ^[33]
• 41% of companies that use peer-to-peer recognition have seen a positive increase in customer satisfaction. ^[33]
• SHRM cites organizations with ongoing recognition programs experience 28.6% lower frustration levels. ^[33]
• Organizations that use employee incentive programs experience a 79% success rate in achieving their established goals when the reward was offered. ^[31]
• Organizations where recognition occurs have 14% better employee engagement, productivity, and customer service than those without. ^[35]

Digital And Remote Work Trends

• 80% of company leaders plan to allow employees to do remote work at least part of the time after the pandemic. ^[8]
• 47% will enable employees to work from home full-time. ^[8]
• 75% of workers experience greater productivity at home. ^[8]
• 74% encounter fewer distractions, 71% less stress from commuting, and 65% fewer office politics. ^[8]
• 63% of American workers say the pandemic has prompted them to dramatically reevaluate their professional priorities. ^[8]
• 52% now say that feeling safe at work is more important than being promoted. ^[8]
• 79% say employer values are more important to them than before the pandemic. ^[8]
• A 2018 PwC (PricewaterhouseCoopers) study found that 75 percent of surveyed companies now have at least one HR person in the cloud. ^[8]
• 26 percent of respondents planned to move a core system to the cloud in the next one to three years. ^[8]
• Machine learning and AI will represent more opportunities for employee engagement in 2022. ^[8]
• 42% of survey respondents reported that their top reason for implementing a wellness program was to improve employee engagement. ^[8]
• 78% of employees would work longer hours for an employer who they thought was empathetic. ^[8]
• 98% of people say their belonging at work is important to their overall well-being. ^[16]

Employee Well-being And Mental Health

• 93% of employees say their well-being at work is as important as their salary. ^[16]
• 96% of workers experience stress during the workday. ^[16]
• 87% of employees say empathy is essential to fostering an inclusive environment. ^[30]
• 74% of employees feel more effective when they feel heard. ^[30]
• 90% of workers report increased motivation when recognized. ^[30]
• 88% of employees believe it’s critical for companies to recognize and reward their staff for outstanding performance. ^[23]
• 84% of highly engaged employees were recognized the last time they went above and beyond at work compared to only 25% of actively disengaged employees. ^[21]
• 83% of senior managers said recognition was important to their workplace experience. ^[33]
• 92% of workers are more likely to repeat a specific action after receiving recognition for it. ^[33]

Employee Development And Growth

• 47% of higher educated workers said a limited career path could get them to leave for a better opportunity. ^[26]
• 74% of workers want to acquire new skills in their training. ^[26]
• 87% of employees say development is important in their job. ^[31]
• 41% of employees consider career development opportunities for learning and personal growth very important. ^[21]
• 70% of Gen Z and Millennial employees would stay at their current employment for another year if they were offered prizes totaling only $150 over the course of a year. ^[23]

Financial And Non-financial Rewards

• Organizations worldwide recognize the importance of incentives, with the incentives industry now valued at over $100 billion. ^[31]
• $46 billion of the incentives industry is attributable to non-cash incentives. ^[31]
• 65% of employees prefer non-cash incentives over monetary ones. ^[12]
• 65% of employees would rather work for a company with a culture of employee performance recognition than for a company that paid 10% more but offered no acknowledgment, praise, or thanks. ^[11]
• The average open rate for email campaigns is 18%, and the average click-through rate is only 2.6%. ^[9]
• Rewards-based promotions increase sales 4.7%, compared with 3.2% for discount-based promotions. ^[9]
• A $10 incentive increased the likelihood of someone returning a survey by 30% and boosted the number of returned surveys by 18%. ^[9]
• 52% of respondents choose digital incentives over plastic prepaid cards so they can receive their reward faster. ^[9]

Employee Feedback And Communication

• 78% of employees who receive daily feedback from their managers feel they are performing higher. ^[10]
• 69% less likely to search for a new job when receiving daily feedback. ^[10]
• 87% of employees trust empathetic leaders more. ^[10]
• 85% of staff members produce more because compassionate leaders lead them. ^[10]
• 37% of the workforce resigned because they felt disconnected from their coworkers. ^[10]
• 48% resigned because they didn’t feel they belonged in the organization. ^[10]
• 47% of employees find that new growth opportunities are the best way to reward them for their achievements. ^[7]
• 85% of employees believe management should reward employees for a job well done whenever it occurs. ^[7]

Workplace Flexibility

• 80% of the workforce will be working from home multiple days a week by the end of 2021. ^[8]
• 75% of workers said they experience greater productivity at home. ^[8]
• 71% experience less stress from commuting. ^[8]
• 65% experience fewer office politics. ^[8]
• 52% now say feeling safe at work is more important than being promoted. ^[8]
• 79% say employer values are more important to them than before the pandemic. ^[8]
• 42% of survey respondents reported that their top reason for implementing a wellness program was to improve employee engagement. ^[8]
• 78% of employees would work longer hours for an employer who they thought was empathetic. ^[8]
• The 44% of personnel who feel great stress at work indicate that stress-free environments are not the norm yet. ^[10]
• 81% of large organizations offered some sort of wellness program in 2020. ^[10]
• 63% of employees who feel recognized are unlikely to look for a new job. ^[11]
• 69% of employees say recognition and rewards would keep them in their current job. ^[11]
• 53% of workers say they would stay longer in a company if they feel appreciated. ^[11]

Organizational Culture And Values

• Employee recognition programs benefit organizational values, according to 83% of HR leaders. ^[7]
• 85% of HR leaders say recognition programs positively affect organizational culture. ^[7]
• 83% of HR leaders say employee recognition can strengthen organizational values. ^[33]
• 92% of workers are more likely to repeat an action they’ve received recognition for. ^[11]
• 87% of employee rewards and recognition programs concentrate on acknowledging tenure alone. ^[12]
• 21% of employees are very satisfied with the current career advancement opportunities available to them. ^[21]
• 90% of employees who work in organizations with effective rewards programs agreed with the statement “my work makes a difference.” ^[34]
• 88% of employees agree that it’s important that employers reward employees for great work. ^[27]
• 77% of employees agree that digital incentives make them feel their company cares about them. ^[37]
• 65% of respondents agree that digital incentives are better than other kinds of recognition. ^[37]

Digital Transformation And Technology Adoption

• 82% of the very best companies focus on the human experiences behind all their digital technology. ^[14]
• Both countries spend more than $100 million every year on software adoption. ^[14]
• 75% of surveyed companies have at least one HR person in the cloud. ^[8]
• 26% of respondents planned to move a core system to the cloud in the next one to three years. ^[8]
• Machine learning and AI will represent more opportunities for employee engagement in 2022. ^[8]
• 42% of survey respondents reported that their top reason for implementing a wellness program was to improve employee engagement. ^[8]
• In the U.S., the average worker is productive for a total of 2 hours and 53 minutes out of an 8-hour day. ^[15]
• 82% of Americans don’t feel their supervisors recognize them enough for their work. ^[15]
• Data from the Harvard Business Review suggests that 82% of Americans don’t feel their supervisors recognize them enough for their work. ^[25]
• 59% of the total population were still mainly using cash in 2022. ^[20]
• Since the onset of the COVID-19 pandemic, contactless shopping has become more popular. ^[28]
• 74% of consumers prefer to make payments using digital methods, especially those from younger generations. ^[29]
• 77% of consumers prefer making digital payments over cash or paper checks. ^[29]
• The average open rate for email campaigns is 18%, and the average click-through rate is only 2.6%. ^[9]
• Software adoption in 2023 is staff learning and being motivated to use software, so they make it part of their daily workflow. ^[24]
• IBM improved user retention rates from 50% to over 70% using the WalkMe Digital Adoption Platform. ^[24]
• Since implementing WalkMe, IBM has experienced a 300% improvement in product usage, consumption, and retention. ^[24]
• 63% of leading tech companies believe technical changes must occur more rapidly within their organizations. ^[32]

Rewards And Incentives Service Market

• The global rewards and incentives service market size was USD 3910 million in 2021 and is projected to reach USD 9237.61 million by 2028, at a CAGR of 8.9% during the forecast period. ^[17]
• The global digital loyalty program market is estimated to have a value of USD 51.5 billion in 2025 and is analyzed to increase at a CAGR of 8.2% to reach USD 113.3 billion by 2034. ^[13]
• The employee engagement market is projected to be worth USD 803.0 million in 2025 and anticipated to reach USD 3,603.9 million by 2034. ^[19]
• The market is expected to surge at a CAGR of 16.2% during the forecast period 2024 to 2034. ^[19]
• The employee engagement software market size was valued at USD 911.0 million in 2023 and is projected to grow from USD 1,053.8 million in 2025 to USD 3,610.5 million by 2032, exhibiting a CAGR of 16

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