Sometimes people need a nudge to get
them to do what is right. Mom prodded
you to eat your vegetables. Police offer rewards for information. Frequently, progressive businesses offer incentives to employees
for getting and staying healthy.
“As more-enlightened organizations begin
to introduce employee wellness programs,
the emphasis no longer focuses on ‘should
we or shouldn’t we,’ but, rather, ‘how do we
maximize participation?’” says Doug Ribley,
vice president of health and wellness services for the Akron General Health System.
Smart Business spoke with Ribley about
how rewarding employees for staying
healthy can work — if done correctly.
What kinds of rewards work?
Companies that are successful in the
employee health arena experience reduced
absenteeism, reduced workplace injuries,
reduced employee turnover, reduced health
care costs and increased employee morale
— to name a few. The best health and wellness programs can be totally ineffective if
employees don’t participate. As a result,
many organizations are now working hard to
introduce creative incentives that encourage
significant participation. These incentives
tend to fall into one of four categories: cash
incentives, rewards, wellness center membership fee reimbursement and special consideration (discounts) on employee contributions toward health care premiums.
Are noncash rewards effective?
Cash incentives are becoming more common, however, this does not represent the
only effective option. Noncash rewards that
recognize effort, commitment and/or positive outcomes are very effective. Both large
and small prizes can produce desired results.
Many organizations will negotiate special
membership rates for their employees at
local wellness centers or commercial clubs,
and provide direct reimbursement to the
employee when certain criteria are met,
such as 12 visits per month. It is important to
note that not all fitness and wellness centers
have the information technology in place to
track this or other important statistics. These
capabilities should be identified early in the process when planning the detail related to
this category of employee incentives.
How often should rewards be presented?
People enjoy receiving recognition and
rewards. However, a fine line exists when
planning the timing of distribution. If rewards
don’t occur often enough, participants can
lose interest unless the reward is substantial.
If rewards are distributed too often, they lose
effectiveness because they are not valued.
Typically, successful incentive programs
reward success at least quarterly and no
more than monthly. Some organizations have
had success with rewards distributed on a
six-month basis, but, in general, the longer
the time between reward distribution, the
greater the value of the reward should be.
Which employees are likely to participate?
When looking at the demographics of program participants, it is interesting to note that
the engagement in well-developed employee
health programs is far-reaching. Participation
crosses the gender, age and fitness-level lines.
The greatest challenge seems to be the
extremes — the very fit and the very unfit.
Although these groups typically do not represent the majority of the work force, special
attention is required to encourage participation, primarily due to the fact that the unfit
population, although not the majority, are
responsible for the largest portion of employer related health care costs and have the
greatest impact on insurance premiums.
Do group award programs work?
Team and group award programs represent
an effective incentive strategy. Employees
participating in this type of program are not
only motivated by the reward but are motivated by their peers. Results tend to be meaningful and long-lasting. Effective program
design and implementation is always the key
to success. Often, organizations rely on third-party professionals to provide the creativity
and leadership necessary to achieve the
desired outcome. Follow-up programs are
very important due to the fact that a need to
provide motivation and incentives once the
peer support concludes is necessary.
What happens if rewards are terminated?
Incentive based wellness programming
cannot be a one-time or annual initiative to
be effective. A strategy that includes a consistent and ongoing schedule of motivating,
incentive-based programs and activities is
important to organizational and individual
success. Also, this schedule should take into
consideration those times of the year when
health and wellness program adherence is
the most difficult, such as the holiday season
or the summer months. It is important to
develop and ongoing program that assists
employees when support is needed the most.
What is the payback to the company?
From a pure dollars-and-cents standpoint, a
company can expect to realize a $3 return for
every dollar invested in employee health and
wellness initiatives. But, this type of return
will only be achieved through a consistent,
committed and ongoing effort in which the
organization embraces a culture that demonstrates a meaningful and real commitment to
employee health.
DOUG RIBLEY is vice president of health and wellness services for the Akron General Health System. Reach him at [email protected].