What the IRR Industry Can Do to Elevate Its Executive Brand
One of the founders and early presidents and head of research for the original Incentive Research Foundation, head of the Incentive Performance Center outreach group and Forum for People Performance Management and Measurement funded by The Motivation Show and the top 10 incentive companies for over 10 years in the 2000s, shares his perspective and recommendations on how to elevate the business of incentives, rewards, and recognition in the 2020s. By Bruce Bolger
The Case For Growth
Where IRR Stands vs. Other Strategic Disciplines
What Other Disciplines Do Well (Brand Lessons for IRR)
A 12-Step Strategic Plan to Strengthen the IRR Industry Brand
Closing Perspective
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The Case For Growth
While there is plenty of research suggesting that effectively designed reward and recognition programs can produce material benefits, it also affirms the need for serious expertise. Almost every academic study related to the impact of incentives finds a case both for and against the programs—almost all finding that a focus on extrinsic awards alone often leads to unintended consequences. In other words, motivation isn't as simple as dangling carrots.
A meta-analytic review of experiments examining the effects of extrinsic rewards on intrinsic motivation was published by E. L Deci, R. Koestner, and R.M. Ryan, R. M. in 1999. This often-cited review discusses how different types of incentives can influence motivation and behavior in both educational and workplace settings. It finds that unless properly constructed these programs can do more bad than good.
S.J. Condly, R. E. Clark and H.D. Stolovitch, H. D. found similar results in this study conducted for the Incentive Research Foundation in 2003: The effects of incentives on workplace performance: A meta-analytic review of research studies. This study compiles numerous findings showing that well-structured incentives significantly improve performance and behavior in a variety of organizational contexts, but also warns against a uni-dimensional approach.
Even this paper by J. Cameron, K.M. Banko, and W.D. Pierce, Pervasive negative effects of rewards on intrinsic motivation: The myth continues, finds that when, thoughtfully designed, incentives can enhance positive behavior, but can otherwise and often do cause considerable damage.
Punished by Rewards: The Trouble With Gold Stars, Incentive Plans, A's, and other Bribes, by Alfie Kohn, created quite a stir in the IRR business when published in 1993, by arguing that a singular focus on carrots and recognition alone could lead to undesirable consequences.
In other words, incentives, rewards, and recognition work as part of a comprehensive engagement and enablement effort to harmonize the interest of all stakeholders or team members toward a common purpose, goals, objectives, and values. Properly designed programs can enhance performance by double-digits, according to the work of Condly et al, but improperly designed programs can backfire with often undetected consequences until it's too late. (Think Wells Fargo controversies.) All the research studies indicate that significant expertise is required to effectively harmonize the interests of various stakeholders, and yet the subject is taught almost nowhere in schools or professional development.
Perhaps as a result, despite decades of research and millions invested in proving the value of IRR, an AI analysis indicates that the IRR discipline still lags finance, marketing, customer relationship management, human resources, and Total Quality Management (TQM) in visibility and influence among senior executives or education. This is not for lack of proof that rewards and recognition can work, but rather because the industry has struggled to position itself as a strategic enterprise discipline, not just a collection of tactical programs.
Even though various estimates suggest that over 80% of organizations use some form or another of an incentive or recognition program, there are only about 150 incentive, reward, and recognition companies around the world. Compare that with estimates suggesting that there are over 20,000 marketing agencies in the US alone, and thousands of CRM (customer relationship management) and total quality management implementation and certification firms.
Where IRR Stands vs. Other Strategic Disciplines
Despite its evidence base and industry growth—highlighted in the latest RRN IRR Market Reports—the IRR industry’s brand recognition among senior leaders remains below that of several key disciplines:
1. Finance. Always in the C-suite/boardroom. It drives governance, capital allocation, risk, and financial reporting. Its tools and language are universally understood.
2. Marketing and CRM. CRM has become a system of record, with large enterprise platforms (Salesforce, Microsoft, SAP) and data frameworks that senior teams use daily to drive revenue and strategy. Marketing has its influence challenges as well, due to often ineffective measurement, but still underpins a top-line priority known as revenue. Use of rewards are only one of many tactics involved with marketing, CRM and related sales efforts. Loyalty marketing benefits from strong data linkage to revenue and customer lifetime value but still reports into marketing. It has clear executive KPIs and large communities of practitioners, usually under the umbrella of marketing.
3. Human Resources (Overall). HR is a foundational business function with broad enterprise legitimacy. While it often lacks the level of authority enjoyed by finance, it still holds considerable authority for the often huge systems and large percentage of costs and risks it is accountable for. Use of recognition and rewards is only one of the many tactics under the domain of HR.
4. Research and Development (R&D). At many companies, this is seen as an essential role to innovation and competitive advantage, especially in technology, engineering, and science sectors.
5. Total Quality Management (TQM). TQM frameworks (and their many variations like Six Sigma/Lean) are recognized as organizational systems driving continuous improvement and customer satisfaction, but still mostly in manufacturing, health care and related industries.
7. IRR. The field is largely branded as a set of programs (employee perks, rewards, recognition and motivational events) rather than a systematic management discipline. All the above disciplines have associations dominated by end-users. While the motivational events and recognition organizations have many end-user members, those focused specifically on rewards have very few.
IRR has greater strategic potential than its current perception would suggest. It’s grounded in evidence and has enormous potential for growth, but executive visibility, education, and perceived strategic value trails more established disciplines.
What Other Disciplines Do Well (Brand Lessons for IRR)
CRM, Marketing, Loyalty
- Clearer ROI language tied to revenue and retention
- Standardized frameworks and platforms widely adopted
- Large end-user communities and certifications
- More focus on what customers need to buy rather than on what suppliers wish to sell
Total Quality Management
- Institutionally recognized systems (through frameworks like ISO or Malcolm Baldrige Presidential Quality Awards) with enterprise governance and leadership accountability.
A 12-Step Strategic Plan to Strengthen the IRR Industry Brand
1. Articulate a unified strategic framework. Define a recognizable IRR discipline—e.g., Incentive and Recognition Management Systems—with core principles, maturity models, and enterprise governance.
2. Publish executive-oriented KPIs linked to enterprise goals. Move beyond broad engagement measures to metrics tied to retention cost reduction, productivity, performance improvement, risk mitigation, or achievement of organizational or team purpose, goals, objectives, and values.
3. Publish actual impact results rather than general surveys. Industry associations and companies have published general surveys for years with little demonstrable incremental impact. The industry can benefit by publishing data on actual programs and have those published in academic journals. (This is often a challenge because few companies actually create scientifically based and measured incentive, rewards, or recognition programs.)
4. Align with enterprise quality frameworks. Position IRR as a driver of organizational quality and performance akin to TQM principles—rewarding collaboration, problem-solving, and customer-centric behavior.
5. Build a practitioner credential ladder. Develop industry-wide certifications (Foundational, Practitioner, Strategic Architect) recognized by HR and business leaders.
6. Create an open benchmark repository. Publish aggregated benchmarks on recognition frequency, program coverage, and business outcomes.
7. Integrate with major enterprise platforms and standards. Work with CRM, HRIS, and performance platforms to embed IRR data in broader enterprise dashboards.
8. Co-publish research with executive audiences. Partner with groups like Deloitte’s High-Impact Rewards insights to tailor research to executive priorities.
9. Launch “IRR for Leaders” road shows. Executive forums, webinars, and roundtables that speak C-suite language about performance drivers, ROI, and competitive advantage.
10. Foster end-user communities. Encourage robust practitioner communities through events, peer groups, and mentorship models.
11. Create case libraries of strategic success stories with meaningful metrics. Document how well-designed IRR systems influence organizational goals and drive measurable improvements.
12. For IRR suppliers, shift away from focusing on non-cash rewards or general statements about “increasing engagement or retention” and instead focus on concrete value—like improved retention metrics, enhanced productivity rates, specific cost savings, or achievement of organizational team, purpose, and goals. By doing so, the industry can align more closely with the strategic language that senior management cares about.
Closing Perspective
The IRR industry stands at a crossroads: the proof that incentives and recognition work has never been stronger, yet brand stature with senior leaders remains underleveraged. By borrowing frameworks from CRM, TQM, and other disciplines—and pairing them with strategic metrics, executive language, and practitioner community building—the IRR field can elevate its strategic profile and become more valuable to the people in the boardrooms.
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