Incentives as part of an employee wellness program

Employee incentives are often the motivating factor that keeps your employee wellness program moving along. Employees will be much more likely to want to participate in the program when they know that there is something in it for them. Studies show that most companies are using the incentive of a lower cost medical plan, to motivate their employees. The good news for employers is that it doesn't take much to get their staff involved, even a reduction of $25-30 dollars in employee contribution to the medical plan, has been found to be a great incentive. Experts agree that even for an incentive at this level, employers can expect to have about 80% of their workers willing to participate in the program.

However, it should be noted that a reduction in health care premiums is not the only successful incentive, for employee wellness programs. Businesses may use other types of incentives that are more appealing to their workforce. These can include but are not limited to:

• A reduction in co-pay or deductibles on the health insurance plan


• A employer funded contribution that is made to a Flexible Spending Account


• Access to a higher level of the medical plan, then those employees who choose not to participate.

Some businesses are even taking their incentives for employee wellness to another level.
At this level the incentive that the employee receives will be tied to the results that are gained, from participation in the program. However, it should be noted that this needs to be done cautiously and carefully. Employers should make sure that the incentive program when it is tied to an outcome, does not violate any discrimination laws. Here are some examples of tying the incentive to the employee wellness program-

• If the employee is found to be a high risk, through the results of their Health Risk Assessment screening, then the business can make it mandatory that the employee become involved in the program, or they will have to pay a financial penalty.


• Some programs offer points that the employee can then use, toward a monetary prize.


• It cannot be overstressed that employers must make sure that any incentive that is results based falls under the proper discrimination guidelines. You need to keep in mind that if an employer is unable to achieve even one particular part of the employee wellness program, then a suitable alternative will have to be found. In order to comply with this, some businesses are requiring that their employees get a physician's letter, stating that the worker has complied with all recommended treatments. This letter can be put together by the employee wellness program and then individualized to each employee.

Many businesses struggle with the question of how they should establish their incentive program. While the answer to this question will be different for every company, one method that is commonly used is to simply design a few incentives and rewards, for any employee who is participating. Then in the following years, the business can then begin tying the outcome of the participation, to the desired rewards and incentives. Otherbusinesses just stick with having the rewards and incentives, tied to participation only, with the thought that any real change must come, from the employee, himself. They believe that a penalty for failing to make the desired change, will not affect lasting healthy behaviors. Experts agree that any business that is starting an employee wellness program will have to consider this question carefully, along with needs and interest of their own workforce. It is important to make sure that any incentives that are tied to your employee wellness program are a reflection of the company culture as a whole.