IRF Study: Managers, Autonomy and Recognition Are Critical to Engaging a Decentralized Workforce

An Incentive Research Foundation study finds that effective reward and recognition strategies for hybrid and remote employees must go well beyond merchandise or cash to address autonomy, meaningful work, growth, manager appreciation, communications and connection.

Remote Work Changes What Employees Value
Rewards Are Only Part of the Solution

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One of the clearest findings from an Incentive Research Foundation study of remote and hybrid workers is that the manager may be as important as the reward. One-to-one appreciation from an immediate manager was rated the most motivating form of recognition, while employees ranked interesting work, growth opportunities and autonomy as their most important intangible rewards. When it comes to tangible rewards, cash led the list, followed by gift cards, gifts, points and individual travel.

These findings from The Role of Incentives in Today’s Decentralized Workforce suggest that the opportunity for the incentives, rewards and recognition industry increasingly extends beyond providing awards. The research argues that incentive professionals can play a broader role in helping organizations reinforce the behaviors, relationships and workplace conditions that support engagement and performance when employees are no longer working together every day.

The study was conducted by Allan Schweyer of the Incentive Research Foundation and Angela Fan, Emily Ford and Ji Hyoung Kang of Carnegie Mellon University. Its primary research was based on a March 2022 survey of approximately 1,000 employees and managers, including 424 managers, supplemented by an extensive review of existing research on remote work, motivation, incentives and recognition.

Remote Work Changes What Employees Value

The research found strong support for workplace flexibility. Eighty-two percent of employees and 84% of managers wanted either the same amount or more remote work than they currently had, while the average respondent preferred 3.7 remote working days per week. About 30% said they would either accept a significant pay cut or seek another job if denied their preferred amount of remote work.

At the same time, remote work creates significant management challenges. Only five of the 424 managers surveyed said they had no concerns about it. Isolation, communications difficulties and reduced exchange of information and ideas ranked among the most common concerns. Employees cited many of the same issues, along with work-life balance, equipment expenses and micromanagement.

This creates an important role for recognition programs. The study reports that peer-to-peer recognition can help address isolation and build connections, while points, personalized gifts and celebratory meals can add tangible value to recognition. The researchers also suggest that incentives can reinforce behaviors such as collaboration, knowledge sharing, teamwork, accountability and adoption of communications technology.

Rewards Are Only Part of the Solution

Perhaps the most important implication for the incentive business is that employees do not separate rewards from the overall work experience. For engagement and retention, respondents placed compensation and work environment among their highest priorities, while autonomy, interesting work, growth opportunities and appreciation were important intangible factors. In fact, most respondents could not identify a particular reward uniquely suited to remote employees. Among those who could, autonomy, flexible time and paid time off frequently appeared alongside points, personal gifts, group meals and peer recognition.

That finding reinforces a broader opportunity for reward and recognition professionals. Effective programs increasingly require understanding the organization’s people strategy, culture and business objectives before selecting awards. The role is less about simply distributing rewards and more about determining which behaviors and experiences should be encouraged, how managers participate, how employees are recognized and whether the program strengthens relationships and performance.

As the IRF concludes, incentives and rewards have an important, though not exclusive, role in managing decentralized workforces. Their greatest value may come when tangible rewards are integrated with recognition, autonomy, meaningful work, communications and opportunities for people to connect.

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Contact: Bruce Bolger at TheICEE.org; 914-591-7600, ext. 230.