Employee wellness programs are an essential component of any organization, but finding ways to build excitement and engage employees can be challenging for employers with diverse workforces.
While wellness programs are designed to improve health outcomes, reduce absenteeism, and cut healthcare costs, they leave the biggest impact when employees are excited to engage and utilize offerings. But with over 60% of employees feeling disconnected from their organizations—leaving a $1.9 trillion hole in lost productivity costs—the motivation to actively participate is at an all-time low among workforces.
That’s where wellness incentives come in.
Offering personalized rewards tied to employer-sponsored wellness activities gives employers the chance to add tangible value to programming, which, in turn, accelerates engagement and commitment to health goals. But what makes wellness incentives such powerful tools for employees and employers, and what are some best practices for creating them and tracking their success?
What’s Preventing Employee Participation?
Despite the clear benefits of employee wellness programs, participation can be a hard puzzle to solve. With today’s workforces spread across states, countries, and even continents—not to mention age groups—there isn’t one clear path to success as far as program engagement is concerned.
In addition, there are several barriers making it difficult for today’s employees to engage with their organization’s wellness programs, including:
- Lack of Awareness: Many employees are unaware of the breadth of wellness resources and incentives available to them. Without an established communication strategy or an easily accessible information hub, benefits always seem outside of an employee’s reach.
- Diminished Motivation: Without customizable programming and rewards that resonate, employees may deprioritize wellness activities and put off essential care tasks.
- Time Constraints: Many employees often cite time constraints as a reason for not participating in wellness programs. As workloads continue to build and with employee burnout surging to pandemic levels, employees are shelving their health goals to focus on work.
The Power of Wellness Rewards and Recognition
The beauty of wellness program incentives lies in the vast availability of options to choose from. From financial rewards like cash incentives and HSA contributions to non-financial gifts like PTO days, healthy meal subscription services, and gym memberships, the options for impactful wellness incentives are endless to match the unique preferences of employees.
When employees see that their participation in wellness activities leads to immediate, meaningful rewards they can choose from, they are incentivized to engage and put their wellbeing first. As a result, wellness becomes a priority rather than a hobby, leading to positive behavior change and healthier habits overall.
And, by integrating wellness incentives into key organizational initiatives, employers can ensure engagement in critical activities like health risk assessments, fitness challenges, or mental health support programs—all of which contribute to improved employee health outcomes.
A Closer Look at the Benefits of Wellness Incentives
Wellness incentives create a ripple effect for wellness program momentum, benefiting not only employees, but the organization as a whole. To help gain leadership buy-in, here’s a closer look at the advantages on all sides:
For Employers:
1. Increased Participation
Rewards of any kind are a powerful motivator for employees, regardless of the financial value attached. In fact, one study from the RAND Corporation found that wellness program participation jumps from 20% to 40% when employers offer wellness rewards (monetary or otherwise).
2. Improved Productivity
Incentivizing healthy behaviors is directly linked to improved productivity. Research shows that when employees feel healthier in all dimensions of their wellbeing, their work performance increases, they take fewer sick days, and are overall more engaged at work.
3. Reduced Healthcare Costs
One of the most significant benefits of wellness incentives for employers is the reduction in healthcare costs. According to RAND’s research, employers save an average of $3.27 for every dollar spent on wellness programs. Incentives are proven to encourage the completion of key preventive care tasks like flu shots and annual exams and also lead to healthier lifestyle choices, which reduce the likelihood of chronic illnesses that require costly medical treatments.
4. Enhanced Employee Retention
Offering meaningful incentives also contributes to higher employee satisfaction and morale, directly boosting retention and lowering turnover. Employees who feel supported by a company that invests in their wellbeing are more likely to stay long-term. Wellness incentive programs show employees that their health and happiness matter, creating a culture of trust.
For Employees:
1. Motivation to Maintain Healthy Behaviors
Wellness programs that offer personalized incentives reward employees rewards for engaging in activities that further their own unique health goals. By offering an array of rewards that can be updated and are free to choose, employees are motivated to build lasting habits that enhance all dimensions of their wellbeing.
2. Financial Wellness
Perhaps the most obvious benefit of wellness incentives are the perks that directly ease financial stress, such as gift cards, reduced health insurance premiums, and health savings contributions. These rewards not only provide immediate financial relief but also help employees save money on healthcare expenses over the long term, reducing money anxiety and building healthier saving habits.
3. Work-Life Balance
New-age wellness rewards like extra time off or flexible work schedules are designed to help employees achieve a better work-life balance. These rewards show employees that their wellness efforts are recognized and appreciated, further motivating them to engage with programming.
Best Practices for Successful Wellness Incentive Programs
Creating a wellness incentive program requires careful planning and execution for the long-term. To help, here are five best practices employers can use to maximize the impact of their wellness incentives:
1. Personalize Incentives for Individual Employee Needs
Tailor wellness incentives to match the personal preferences and health goals of your employees. Use data from health assessments and biometric health screenings to customize activities and resources that motivate employees at every stage of their wellness journey.
2. Offer a Mix of Incentive Types
Combining financial incentives with non-financial rewards provides a diverse range of options for employees. For example, offer cash incentives for hitting fitness milestones and access to wellness subscription services like healthy meal boxes or mental health apps.
3. Communicate the Program Effectively
Employees need to be fully informed about benefit offerings, how to participate in wellness programming, and the incentives available to them. Create a clear plan for promoting your wellness program incentives so that every employee knows what’s available and how to participate.
4. Align Incentives with Long-Term Wellness Goals
Design incentives that not only encourage participation but also foster sustained health improvements. For example, offer ongoing rewards for meeting long-term wellness goals, such as maintaining a healthy weight or tobacco cessation.
5. Monitor and Adjust the Program Regularly
As your workforces change, so should your wellness program and incentives. Track the effectiveness of your wellness program using participation data, employee feedback, and health outcomes. Make adjustments to wellness initiatives as needed to keep engagement high and achieve better results.
Boost Engagement with a Wellness Incentive Program
Wellness programs are essential, but managing them can be complex. Using a wellness platform makes it easy to track participation, personalize incentives, and measure success.
Ready to take your wellness program to the next level? Request a demo to learn how WellRight can help you design and implement a successful wellness incentive program.
