How do wellness incentives drive great employee engagement

A Gallup survey of 160,000 employees found that those who are productive at work also experience a lot of stress. As a helping hand, organizations introducing and implementing wellness programs can help scale employee satisfaction. Supporting this statement is a Metlife workplace wellness trend report stating that 70% of workers are more satisfied once their firm introduces wellness incentive for employees.

Organizations that ensure active participation in wellness programs create a collaborative environment which also attracts a quality company culture. A key player in this process is the wellness committee, which can help you get started by introducing health and fitness benefits like gym memberships, fitness trackers, and challenges. Then, proceed to adding lifestyle and wellness programs like weight management and nutritional counselling programs.

For better analysis of employee wellbeing and incentives, we shall start looking into the basics of wellness incentives then move on to the types and tips to choose the right wellness incentives for employees.

What are wellness incentives?

Imagine a workplace where healthy habits are encouraged and rewarded. This is the essence of wellness incentives—strategic programs designed to motivate employees to live healthier lifestyles. These initiatives go beyond physical well-being and encompass mental and emotional health as well.

By offering rewards for participating in wellness activities and achieving specific goals, companies invest in their most valuable asset: their employees. Wellness incentives recognize the multifaceted nature of employee health and create a culture that prioritizes well-being.

The rewards themselves can be diverse, ranging from reduced healthcare premiums to contributions to health savings accounts, gym memberships, or even cash bonuses. The core principle is to make health and wellness inseparable from the companys' DNA.

What is a wellness incentive program?

A wellness incentive program is a workplace initiative designed to motivate employees to adopt healthy behaviors and improve their overall well-being. These programs typically combine educational resources with reward systems to encourage participation.

How do wellness incentives drive employee engagement?

Wellness incentives can be a powerful tool to boost employee engagement in a couple of key ways:

1. Motivation with initial nudge

Sometimes we all need a little push to get started, especially when it comes to forming new habits. According to a press release by APA, 9 out of 10 workers feel more motivated if their organization supports incorporating wellness programs.

Incentives provide initial motivation to take part in a wellness program, try a new activity like yoga, or prioritize healthy eating. This can be especially helpful for overcoming inertia and getting employees over the first hurdle.

2. Higher participation, better results

Studies show that offering incentives leads to significantly higher participation rates in wellness programs. According to Healthcare Value Hub, 46% of large companies use participation-based incentives with 5% using outcome-based approach.

When more employees are involved, the program itself gains momentum and can create a more positive and health-conscious culture within the company. This increased engagement can lead to a stronger sense of community and camaraderie among employees.

3. Focus on a variety of wellness aspects

Don't just focus on physical health. Offer incentives that promote mental wellness, financial wellness, and social connections. This well-rounded approach caters to a wider range of employee needs and fosters a more holistic view of well-being.

4. Make it fun and engaging

Consider incorporating team challenges or social activities alongside incentives. This can make participation more enjoyable and encourage a sense of friendly competition.

5. Balance extrinsic and intrinsic rewards

While incentives are a great start, the goal is for employees to find the value in healthy habits themselves. This can lead to longer-lasting positive change.

6. Align incentives with employee preferences

Conduct surveys or focus groups to understand what motivates your employees. This could be anything from gift cards to extra vacation days to discounts on gym memberships. By personalizing the incentives, you show that you care about their individual needs and make the rewards more enticing.

7. Emphasize progress over perfection

Set achievable goals and reward employees for completing milestones along the way, not just reaching the final target. This creates a sense of accomplishment and keeps them motivated throughout the program.

8. Offer a variety of incentive tiers

Offering a range of rewards can cater to different levels of participation. Smaller incentives can acknowledge initial participation, while larger rewards can be tied to achieving long-term goals. This tiered system caters to diverse levels of commitment and keeps everyone engaged.

9. Make it visible and transparent

Clearly communicate the incentive program details, including how to earn rewards and track progress. Regular updates and recognition of those achieving milestones can further incentivize participation.

10. Promote a culture of well-being

Don't make wellness incentives feel like a separate program. Integrate them into the company culture by having leadership actively participate, offering healthy snacks in the break room, or organizing walking meetings. This reinforces the message that well-being is a core value of the organization.

Types of Wellness Incentives

Types of wellness incentives

1. Cost incentives

Financial barriers can often stand in the way of healthy habits. Cost incentives are a strategic approach to address this challenge, directly encouraging employee participation in wellness programs by easing the financial burden.

These incentives include subsidies for gym memberships, rebates on health insurance premiums based on program participation, or even direct contributions to employee Health Savings Accounts (HSAs).

Cost incentives can further be divided into 3 types

Low-cost incentives: (less than $100) - Water bottles, bags, yoga mats, earphones, etc.
Mid-cost incentives: ($100 - $300) - Gym memberships, shoes, health equipment, and wearable devices.
High-cost incentives: (more than $300) - vacations, mobile phones, laptops, etc.

2. Non-cost incentives

While financial rewards are valuable motivators, wellness programs can be further enhanced by incorporating non-cost incentives. These incentives focus on providing recognition and benefits that employees highly value without a direct financial outlay from the company.

Here's a glimpse into the diverse range of non-cost incentives:

Publicly acknowledge employees who achieve wellness milestones through features in company newsletters, social media recognition, or special awards programs.
Offer additional paid time off (PTO) for completing wellness challenges or reaching specific goals.
Provide exclusive access to wellness events, workshops, or seminars led by health professionals.
Offer desirable non-monetary rewards such as priority parking spots, flexible work arrangements, or discounts on healthy food options.

3. Progress-based incentives

Traditional wellness programs often focus solely on end goals. Progress-based incentives take a more nuanced approach, recognizing and rewarding the ongoing journey towards improved well-being. This approach celebrates every step forward, no matter how small, motivating employees to stay engaged in their wellness journey.

Here's how progress-based incentives work:

Measurable milestones: Set clear, achievable wellness goals that can be tracked and quantified. This could include consistent app usage, gradual weight loss, or increased contributions to HSAs.
Incremental rewards: Offer a variety of rewards tied to achieving specific milestones within the larger wellness goals. This provides ongoing motivation and a sense of accomplishment as employees progress.
Digital tracking tools: Utilize digital platforms or apps that allow employees to track and visualize their progress. Seeing their improvements gamifies the experience and helps them stay motivated.

4. Participation-based incentives

Participation-based incentives play a crucial role in getting employees started on their wellness journey. These incentives prioritize effort over outcome, rewarding employees for participating in wellness activities.

This approach offers several benefits:

Lowers the barrier to entry: By rewarding participation, the program becomes more accessible, encouraging even those who might be hesitant about their current health status to get involved.
Focuses on Effort: The emphasis is on initiating healthy habits, regardless of the final outcome. This creates a more inclusive environment and fosters a sense of accomplishment for taking the first step.

5. Result-based incentives

Results-based incentives offer a compelling way to acknowledge and reward employees who achieve significant health improvements. These incentives focus on measurable outcomes, such as reaching a target fitness goal, lowering cholesterol levels, or successfully quitting smoking.

Here's how results-based incentives can benefit your wellness program:

Goal-oriented approach: Setting clear, measurable health goals provides a roadmap for employees and motivates them to strive for specific achievements.
Rewarding success: Recognizing and rewarding successful outcomes reinforces positive behavior change and celebrates employee dedication to their well-being.
Examples of incentives: Bonuses, premium discounts on health insurance for meeting health benchmarks, or public recognition programs are effective ways to acknowledge achievements.

Tips for choosing the right wellness incentives for employees

Selecting the right set of incentives is crucial for maximizing employee participation in wellness programs. Here are some key factors to consider when designing your incentive strategy:

1. Personalization

According to Mercer’s study, 64% of employees want to enhance their health and wellness offerings in 2024, which means better personalization of wellness is the need of the hour.

Understanding your employees' unique motivators is essential. The more closely incentives align with personal desires, the greater the program's effectiveness at attracting and retaining participants. Consider conducting surveys or focus groups to gain insights into employee preferences.

2. Specificity

Clearly define the rewards or prizes associated with achieving specific goals. This transparency allows employees to visualize the tangible benefits of their participation and fuels their drive to succeed.

3. Embrace variety

Offer diverse incentives to cater to a broad spectrum of employee preferences. This could include a combination of:

Smaller rewards: Incentivize participation in ongoing activities.
Medium-value prizes: Motivate progress towards specific milestones.
High-value incentives: Reward achievement of major wellness goals.

An example is Google’s gFit program which enables a better approach to employee wellness which includes mindfulness training, fitness classes, access to on-site gyms, and nutritional counselling.

4. Maintain flexibility

Remember, your wellness program is a living document. As you launch and monitor its effectiveness, be open to adapting your incentive structure. Gauge employee engagement based on different reward options and remain flexible to refine your program over time.

Case studies

1. Tyson Foods

Tyson Foods, a major food processing company headquartered in Springdale, Arkansas, United States, faced challenges in improving the health and well-being of its diverse workforce spread across multiple locations.

The company recognized the need to implement a comprehensive wellness program to address these concerns and drive positive outcomes for employees and the organization.

Solutions

To tackle these challenges, Tyson Foods developed a tailored wellness program that provided employees with wellness incentives to encourage active participation in wellness initiatives.

The program included biometric screening and health assessments to identify health risks and establish baselines, personalized health coaching and disease management programs to support employees in achieving their wellness goals, helping reward for participating in wellness activities and making progress towards health targets.

Communication and engagement strategies were also implemented to promote the program and foster a culture of wellness within the organization.

Results

The Tyson Foods wellness program yielded impressive results:

Increased participation rates, with over 70% of eligible employees actively engaged in the wellness program
Improved health outcomes, with a significant reduction in the number of employees classified as high-risk for chronic conditions such as diabetes and hypertension.
Positive return on investment (ROI), with the wellness program generating a return of $3 for every $1 invested.
Enhanced employee satisfaction and engagement, as evidenced by positive feedback and increased participation in wellness activities.

Key takeaways

The success of the Tyson Foods wellness program demonstrates the effectiveness of offering wellness incentives in driving employee engagement, improving health outcomes, and generating a positive return on investment for the organization.

By prioritizing the well-being of its workforce and providing targeted solutions, Tyson Foods has set an example for other companies looking to implement successful wellness initiatives.

2. Graco

Graco, an American manufacturer headquartered in Minneapolis, Minnesota, United States, faced the challenge of controlling costs while ensuring a competitive leadership position.

Opportunity

McHale, the CEO of Graco asked David Ahlers, Graco’s vice president of human resources, to scale the organization’s health promotion efforts as a defense against external threats to the business.

Solution

To acquire lower interest rates, the employees were requested to complete their annual HRA, participate in biometric screening, attend health education classes on-line, review personalized feedback report, complete a dental check-up, and other health care activities.

These activities helped employees earn wellness incentives that would be redeemed for gift cards and medical premium deductions.

Graco implemented an outcome-based wellness incentive program in which active participation helped in earning credits. The organization provided various resources and programs, helping employees navigate their health improvement journey.

The implementation of the wellness program attracted good results

If health goals were met, employees could save more than $1,000 a year on medical insurance.
If employees complete a health assessment and submit biometric data, their spouses would be invited to participate in the wellness program and help the employee earn additional rewards.
Participation rates from 60% to 74%. The organization’s obesity rate saw a reduction from 37% to 31%.
As per Graco survey, 92% of respondents agreed that the company’s outcome-based wellness incentive program motivated them to check their biometric measures.

Key takeaways:

Graco’s wellness incentive program was well-articulated and aligned with the company culture. What helped the program grow is its quality of being organic and driven by a management which believes in the philosophy “practice what you preach”.

How does Empuls create a robust wellness incentive program?

Empuls, known for offering employee engagement solutions, comes as a helping hand for organizations looking to foster a culture which supports employee wellness.

The organization helps incentivize the physical and mental wellbeing of employees in the following ways:

Physical wellness

The employee wellness solution offers rewards and incentives for achieving fitness goals, provides online/offline subscriptions, which include gym membership, virtual yoga classes, and nutrition consultations.

Mental wellness

The platform helps navigate stress at work through various personal therapy sessions, subscription to apps for meditation, stress management workshops, and more.

Conclusion

Wellness incentive programs for employees bring a new dimension to enhancing employee wellbeing. These initiatives will help scale employee productivity, morale, engagement, retention, and create a more valuable company culture.

Organizations looking to get employees on track can utilize the useful wellness solutions mentioned in this article, which can have a positive impact on employee performance.

If you’re looking for a quality employee wellness program, connect with Empuls.