Wellness Incentive Programs Benefit Employers and Employees
According to the Wall Street Journal, almost 90 percent of employers have implemented some sort of wellness incentive program in the workplace. Why? Because these programs can successfully keep employees healthy and productive while reducing insurance and healthcare costs.
Non-Cash Rewards Motivate Employees
There are a number of different types of awards that can be used to motivate employees to achieve the goals of the program, but non-cash employee incentives have been shown to produce the most effective results.
Problem with Cash Rewards
Cash rewards distributed with employee paychecks often fail to motivate and inspire employees because they feel like part of the workers’ regular compensation. To implement a successful wellness program, the reward needs to be meaningful and memorable. Non-cash awards, especially those that can be chosen by the recipients, are typically most desirable because they feel like a special luxury that the recipients would not otherwise purchase. While cash rewards are often spent on bills, necessities or put into savings, non-cash rewards have a higher perceived value to employees because they are kept separate from the regular compensation package.
Problem with Insurance Premium Discount Rewards
Many companies reward employees for positive wellness behaviors and activities with discounted health insurance rates. While this type of reward makes sense, the main problem with it is the fact that many employees do not find insurance discounts motivating enough to make long-term healthy changes. Plus, some employees perceive this type of reward system in a negative light because they feel as though they’re being penalized if they end up paying the full, non-discounted insurance premium.
Types of Wellness Incentive Programs
Wellness Incentive Programs typically fall within one of these categories:
- Employee Participation Rewards: These programs reward employees for participating in the wellness program. They may include wellness activities such as submitting to a blood cholesterol test or body fat assessment.
- Progress Incentives: This kind of program rewards employees for achieving small, but meaningful, steps along the way to the ultimate health goal.
- Outcome-Based Rewards: These wellness incentive programs reward employees once they’ve met a specific health-related goal, like achieving a healthy BMI (body mass index) or cholesterol test screening result.
Currently, obesity and tobacco use tend to be two of the most common focal points of U.S. company wellness incentive programs.
Can wellness incentive programs make a difference in the bottom line of your company? Absolutely! By offering rewards that motivate employees to make healthy changes in their lives, you stand to increase workplace productivity, reduce the number of employee sick days and lower company health insurance costs. Contact Agenda Promotions at 888-555-1234 to design a wellness incentive program that best meets the needs of your business.