The value of incentives over penalties

Employers are feeling the squeeze of the economy, and cutting back on healthcare and other expenses in order to save the business, but one area of utmost importance to both employers and their employees is staying healthy.

The use of incentive-based programs has quickly turned to a discussion on how much employers can penalize employees for not participating in company offered programs and put a spotlight on not only the legalities associated with the penalties but whether is it social and ethically acceptable for companies to interfere in the personal health and wellness of their employees.

The discussion on how much obese employees cost their employers in health insurance and lost wages has been the focus of many studies over the years. It's a complex issue that should be dealt with proactively, but also sensitively as employers move towards taking the problem on within their own closed doors. As benefits such as fully-paid insurance, sick leave and office perks disappear from the work place, incentive programs that promote yearly screenings and health fairs to teach employees everything from effective weight loss solutions to healthy cooking tips are becoming more popular.

Previously effective health care cost management such as adjusting deductibles and increasing employee contributions are no longer satisfying the need for positive bottom lines in today's challenging economy. When the economy was growing, most companies offered to cover the majority of healthcare costs for employees. In this slowing economy over the last few years, businesses have gradually shifted the financial responsibility to their employees and analysts say those employee costs will only continue to increase over the next decade.

One concept that has been increasingly popular in recent years is wellness programs.Employers used to balk at the thought of upfront costs for long-term savings, but as health care costs continue to rise to all-time highs and no one has seen the ceiling yet, over 80 percent of employers with more than 50 employees have added at least some form of wellness program into their workplace.

These programs offer creative ways to pay employees additional benefits for participation. Support groups, breaks that include walking and yoga instruction and leaders who are willing to "walk the walk" when it comes to increasing productivity through healthier employees are becoming commonplace.Employers are realizing that treating the emotional health of their employees is just as important andhave begun offering more on-call counselors, stress relief and grief recovery programs to help employees work through underlying issues.

While the programs are becoming more common place, so are the penalties for not participating in offered programs. Many companies have extended a one year request for employees to stop smoking, lose weight and increase healthy lifestyles and those who do not meet their objective could be vulnerable to extra charges on their insurance, less pay and possibly even being fired from their position.

While it used to be considered the government's responsibility to make sure people stayed healthy through education and awareness, many employers are now moving towards the trend of protecting and preventing within so they can proactively maintain healthy, positive employees.Small, inexpensive additions can be brought inside the workplace to increase health, awareness and productivity and employers are seeing these lifestyle changes also increase their bottom line financially.

To figure out which program will work for your company, offer incentives first. If your employees don't respond, switch to penalties. This will immediately force them to cooperate. Once you have their attention and they know you are serious, you can switch back to an incentive-based program. No matter what road you choose, wellness programs are a great way to get your company in shape and reduce your healthcare costs.