Tangible Incentives in Wellness Programs
The Affordable Care Act, sound familiar? While we haven't talked about it on our blog lately, it doesn't mean its effects aren't still causing changes across the country. More and more organizations are jumping on the wellness program bandwagon as the ACA has made it even more compelling. These wellness programs can range in their complexity while one struggle is felt across them all, how to increase both participation and engagement. In the recent article,
Wellness Incentives Encourage Participation and Engagement, the
OH&S explains that the struggle with participation and engagement is due to factors like poor program design, unattainable objectives, poor communications, and the big one, proper incentives are not being used.
The right kind of motivation. The article goes on to explain the difference between intrinsic motivation and extrinsic motivation. Intrinsic motivation would entail an employee doing something because they enjoy the process and tasks, they want to participate or are driven to engage, while extrinsic motivation requires a little more, like inspirational leadership, compelling communication, team support and yes,
tangible incentives. While many employers hope intrinsic motivation will be enough, in most situations people need extrinsic motivation to both start and keep going until intrinsic motivation kicks in.
Touching on tangible. Tangible incentives can include merchandise items, gift cards and cash, and can be used for a variety of reasons, in many different ways, and for varying amounts. The important thing is to identify what tangible incentives match best with your particular wellness program and to look for incentives that will leave a lasting impression on your employees. For example, while using cash as rewards and incentives may have been an obvious go-to in the past, when receiving electronic paychecks many times the value of the reward is lost and and holds no long-term effect. The turn to more
tangible or memorable incentives, like gift cards, have become more popular in the recent years. Learn more about the use of tangible incentives in wellness programs
here.
Healthy Employee Culture Drives Participation
Initial engagement in employee health and wellness programs doesn't always drive long term participation like healthy employee cultures. While new employee health and wellness programs often drive short term engagement through the first few months, or maybe even the first few years, creating healthy employee champions and a culture of wellness is what creates long term employee participation. Providing non-cash rewards as a component to a healthy employee culture is a great way to drive long term participation. One example of this was offering a discount in the employee portion of the health insurance premium which almost doubled employee participation in
Herman Miller Co's employee wellness program; jumping from 40% to 79% year over year for the first 3 years, but seeing a plateau in participation levels in subsequent years. Offering small denomination gift cards to retailers like GNC, Nutrisystem and CVS/Pharmacy are another way to promote a healthy employee culture by assisting employees in forming a healthy lifestyle. Instead of using typical carrot tactics to get employees to change habits, providing an environment for creating a healthy employee culture will provide longer term results that will have a greater impact on your workforce and healthcare costs.
Employee Wellness Programs, Positive Results from America's Top Universities
The days of sneaking to the break room to meet those afternoon cookie cravings may be long gone. Employee wellness programs have no doubt grown in popularity and some of America's top universities, like Cornell, Stanford, Oklahoma State, and The University of Alabama are no exception. Seven universities in all were surveyed for their employee wellness programs and chosen based on their strong, established employee wellness programs in the
NIRSA report,
Employee Wellness Programs: Collegiate Recreation Trends Research.
The Motivation: The study showed that four primary concerns motivated the establishment of their employee wellness programs: health insurance costs, restructuring, employee productivity, and general improvement of health.
The Components: Similar components were found in many of the universities stemmed from common goals like increasing participation, fostering lifestyle changes, smoking cessation and education. Components included everything from health risk screenings and assessments, wellness workshops, wellness websites and newsletters, release time, physical activity, to smoking cessation efforts and incentives.
Implementation and Engagement: While resource allocation varied across all campuses, most campus-based employee wellness programs were not directly integrated into benefits packages, even though funding sources may be linked. Populations that were targeted also varied across schools; some campuses focused on those least likely to participate, like staff from facilities, while others focused on deans and department heads. Depending on the scope of the program, marketing efforts were also implemented at some schools. To increase participation in all wellness programs, incentive structures were put into place in virtually all schools, with anything from high cash rewards at the end of the year, to gift card rewards for drawing winners and successful program completion. Overall, the results from the universities surveyed was generally positive. Both Stanford and Cornell characterized their employee wellness programs as "a way of life," and all of the schools cited the data they've taken from surveys and assessments as a basis for measuring employee wellness program success. Positive results were also shown in key areas; in return on investment, health outcomes, job performance, effects on campus, and program sustainability. Time to start looking closer at your employee wellness program? The findings from these universities can be applied to any corporate wellness program for any organization. Take a closer look at the full NIRSA report
here.
Growing Workplace Wellness with Digital Health Tools
A recent study found that more than 90% of employers with at least 200 workers now offer some form of wellness program, underscoring the importance of promoting healthy habits like exercise, proper nutrition, and stress management. As unhealthy behaviors contribute to rising healthcare costs, the use of digital tools is helping both employers and employees navigate a healthier future .
The Rising Cost of Unhealthy Behaviors
Unhealthy habits, including smoking, poor diet, and inactivity, are driving up healthcare costs for employers. 21% of national healthcare spending is attributed to obesity alone, and overweight or obese workers miss an estimated 450 million additional workdays annually compared to their healthier counterparts. This absenteeism costs U.S. businesses $153 billion in lost productivity .
To combat these challenges, many companies are adopting wellness programs that leverage digital tools to support healthier employee lifestyles. From fitness trackers and mobile health apps to advanced data analytics, these tools provide real-time insights into employee health, offering both employees and employers a clearer understanding of individual wellness and how to improve it.
How Digital Tools Drive Wellness
Digital wellness tools offer various benefits that traditional wellness programs cannot. Wearables such as smartwatches and fitness trackers monitor physical activity, calorie intake, and sleep patterns. Mobile apps can remind employees to take breaks, stretch, or hydrate during the day, contributing to more active and healthier routines. These tools not only help individuals set and achieve fitness goals but also provide employers with valuable data to tailor their wellness initiatives based on real-time performance .
One of the key drivers of employee engagement in wellness programs is personalization, which digital tools excel at delivering. By providing individual health data and reminders, employees are empowered to take control of their own wellness journey. In fact, 93% of participants in digital wellness programs report that they or their family have benefited from health interventions, such as improved eating habits. Additionally, 85% found fitness activity tracking useful, and83% benefited from stress management programs .
The Role of Gift Card Incentives
Solutions like the Engage2Reward™ Gift Card Ordering Platform are making it easier than ever to integrate wellness initiatives into the workplace. The platform allows employers to offer digital gift cards as incentives for employees who reach specific health goals or milestones. For example, employees who consistently hit their step goals, meet weight loss targets, or engage in mindfulness activities can receive gift cards as rewards. This gamification of wellness creates a fun, engaging environment that encourages participation and progress.
Employers leveraging the Engage2Reward Platform also benefit from the ability to customize incentives based on the needs and preferences of their workforce. From fitness-focused brands to healthy dining options, the platform provides a range of gift card options that support holistic employee wellness.
The Future of Workplace Wellness
While digital health tools have revolutionized the way companies approach employee wellness, it’s important to remember that these tools should be part of a broader strategy. Digital solutions excel at increasing engagement and providing actionable health data, but they should complement in-person wellness activities such as fitness classes, counseling sessions, or even team-building activities that encourage mental well-being.
Looking ahead, the use of digital health tools in workplace wellness is only expected to grow. The global corporate wellness market is projected to reach $93.4 billion by 2028, fueled by advancements in technology and the growing awareness of the importance of mental health in the workplace . As more innovations emerge, from AI-driven health coaching to virtual reality fitness programs, companies will have even more tools to help employees lead healthier lives.
Start Incentivizing Employee Health
Digital health tools offer a promising way to enhance workplace wellness, providing real-time insights, personalized engagement, and measurable results. With the Engage2Reward Platform, companies can seamlessly integrate these tools with meaningful incentives, creating a positive and proactive approach to employee health. As the wellness landscape continues to evolve, digital tools will play a critical role in shaping a healthier, more productive workforce.
Building Employee Health into Your Culture
Employee health and cost of healthcare are relevant to all businesses, regardless of size. Whether you have 2 employees or 200, keeping healthcare costs in check as more provisions of the Affordable Care Act take effect is crucial. Making employe health a part of your organization is a great way to ensure these costs remain manageable. For some employers even the location of the office is a matter of employee health.
