How Top Automotive & Manufacturing Companies Drive Performance Through Rewards
Methodology
Key Findings
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Reward and recognition programs don’t guarantee high performance—it’s how they’re designed and resourced that matters. Top performing companies embed these initiatives into their culture with executive buy-in, tailored reward portfolios, and strategic investments that balance flexibility with perceived value, the study finds.
For organizations seeking to replicate this success, the lesson is clear, the report state: make recognition personal, intentional, and integral to business strategy. When executed with foresight and commitment, rewards become more than perks—they become a driver of culture, engagement, and sustained success in competitive industries.
Methodology
Conducted in spring 2025, the study surveyed 600 program decision-makers, with 149 senior professionals from companies generating at least $100 million in annual sales in the automotive and manufacturing industries. The majority of surveyed firms employ more than 500 workers, and within automotive, 68% were OEM (original equipment manufacturers), 15% in aftermarket parts dealers, and 18% in retail-focused businesses.
The IRF defines top performers—24% of respondents—based on revenue growth, customer retention, talent acquisition, and achievement of business goals. Companies not meeting these benchmarks were classified as comparators (76%). This segmentation provided a clear lens for correlating reward practices with stronger business outcomes.
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1. Executive Sponsorship is Essential
Nearly 80% of top performers reported excellent executive support for reward programs, compared with just over half of comparators. This leadership engagement fosters visibility, prioritization, and cross-departmental collaboration—89% of top performers collaborate across functions, versus 65% of comparators. Stronger staffing (75% vs. 47%) and funding support (61% vs. 41%) further enable long-term success, the study finds.
2. Diverse Rewards Drive Engagement
Top performing companies go beyond traditional incentives, offering travel experiences, gift cards, award points, and merchandise to match employee preferences. Their more varied portfolios increase relevance, flexibility, and personal connection compared with comparators, who rely on narrower reward mixes.
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3. Flexibility and Experience Take PriorityTop performers emphasize participant choice and meaningful experiences. For incentive travel, 57% prioritize flexibility (vs. 28% of comparators), and for non-travel rewards, 74% do the same (vs. 38%). High perceived value is also critical—59% of top performers stress reward prestige, well above comparators’ 38%.
4. Structuring for Motivation and Momentum
High-performing organizations design programs with incremental targets, “Fast Start” incentives, and unlimited reward opportunities. These elements encourage early wins, maintain momentum, and sustain long-term engagement. Nearly 90% of top performers offer uncapped rewards, compared to 63% of comparators, signaling confidence in the programs’ ROI.
5. Strategic Investment in Reward Value
Perhaps the most defining difference lies in reward value, the study reports. Top Performers spend significantly more on non-travel incentives and sales travel awards, not just to spend more, but to elevate prestige and relevance. For top employees, average non-travel reward values are more than double those of comparators, reinforcing loyalty and motivation.
Enterprise Engagement Alliance Services
Celebrating our 16th year, the Enterprise Engagement Alliance helps organizations enhance performance through:
1. Information and marketing opportunities on stakeholder management and total rewards:
ESM Weekly on stakeholder management since 2009; click here for a media kit.
RRN Weekly on total rewards since 1996; click here for a EEA YouTube channel on enterprise engagement, human capital, and total rewards insights and how-to information since 2020.
2. Learning: Purpose Leadership and Stakeholder
Management Academy to enhance future equity value and performance for your organization.3. Books on implementation: Enterprise Engagement for CEOs and Enterprise Engagement: The Roadmap.
4. Advisory services and research: Strategic guidance, learning and certification on stakeholder management, measurement, metrics, and corporate sustainability reporting.
5. Permission-based targeted business development to identify and build relationships with the people most likely to buy.
6. Public speaking and meeting facilitation on stakeholder management. The world’s leading speakers on all aspects of stakeholder management across the enterprise.
