Multinationals managing incentive programs across North America and Europe are facing a divergence in non-cash reward spending. According to the Incentive Research Foundation's 2026 Industry Outlook, released in December 2025, average per-person spend on non-cash rewards in North America has fallen for the second consecutive year, dropping from USD 921 to USD 866. In contrast, European per-person spend has seen a modest increase, rising from €924 to €940 [sourcing:The Incentive Research Foundation|Industry Outlook for 2026: Merchandise, Gift Cards, and Event Gifting, 2025]. This disparity raises critical questions for global total-rewards leaders regarding whether a single reward value and format mix can suffice for both regions or if regional customization is necessary. [1]

The IRF's 2026 outlook, based on 400 survey responses from incentive professionals collected in August and September 2025, highlights that while North American budgets appear under pressure, overall sentiment remains optimistic. More than 70% of North American programs and 60% of European programs expect their non-cash reward budgets to increase, with most increases anticipated to keep pace with inflation [sourcing:Skift Meetings|Incentive Pros Stretched Thin But Still Optimistic, 2026]. The IRF notes that 65% of North American programs (and half of European programs) expect more participants to receive non-cash rewards. This suggests a trend where larger audiences are sharing budgets that are rising roughly with inflation, thereby lowering the per-person value. Stephanie Harris, president of the Incentive Research Foundation, stated, 'The number of program participants is projected to increase in 2026, despite flat budgets and rising costs' [sourcing:The Incentive Research Foundation|IRF's 2026 Incentives Industry Outlook Reports Optimism Despite Budget Pressure]. [1]

Gift cards remain the dominant reward format, accounting for 30% of program allocations in North America and 34% in Europe [sourcing:The Incentive Research Foundation|Industry Outlook for 2026: Merchandise, Gift Cards, and Event Gifting, 2025]. Usage is expected to grow, with nearly 70% of North American organizations and just under 60% of European organizations anticipating increased gift card deployment in 2026. However, the mix of spending is shifting: average per-instance merchandise spend has climbed to USD 276 in North America and €306 in Europe, while per-person event gifting spend has dropped sharply, from USD 649 to USD 397 in North America and from €876 to €408 in Europe [sourcing:PPAI|Merch Rewards See Increased Spend as Recognition Programs Expand in 2026]. The IRF suggests organizations may be focusing on fewer, higher-value rewards or adjusting participation levels to manage these costs. [1]

For global program managers, these diverging trends imply that a shared global framework with regionally tuned denominations, format mixes, and catalog depths is preferable to applying one reward value everywhere. A single global denomination ladder risks becoming unaffordable in North America or unfairly limiting European teams. Instead, anchoring rewards to achievement tiers (e.g., 'spot award', 'milestone') while allowing each region to set its own value per tier maintains consistent recognition while respecting local budget trends and cost levels. This approach leverages gift cards as a flexible layer for programs adding participants on tight per-person budgets in North America, while European programs with growing per-person spend can add higher-value formats like curated merchandise or experiences. [1]

Regional design also demands regional catalogs. Recipients value local brands, meaning a catalog heavy with US brands may not resonate in Germany, France, or Spain. Providers should offer local-currency face values and be evaluated on catalog depth per country rather than just global brand counts. Additionally, governance work must address varying expiry periods and tax treatments of non-cash rewards across US states, Canadian provinces, and European countries. Companies are advised to maintain a global policy document that specifies which settings each region may change and which remain fixed, confirming specific rules with local legal and tax counsel before implementation. [1]