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Wellness Programs and Incentives on the Rise: Ways to Support Health Improvement Programs

According to the Wellness Councils of America (welcoa.org), more than 81 percent of businesses with 50 or more employees have some form of health promotion program—the most popular being exercise, stop-smoking classes, back care programs and stress management. Not surprisingly, programs and incentives to improve employee health are on the rise. A study by Fidelity Investments and the National Business Group on Health indicate that most U.S. companies planned to increase the monetary value of wellness incentives in 2012.

The types of services generally offered by employers include programs to manage existing conditions (e.g., diabetes and asthma), lifestyles (e.g., weight loss and smoking cessation), and health risk (e.g., on-site flu shots). Some of the benefits of these services include: fewer employee absences, fewer injuries and less worker’s comp/disability claims, lower health care costs, higher productivity and increased morale and better employee retention.

Findings from the November-December 2011 survey show that nearly three out of four companies (73 percent) used incentives to engage employees in health improvement programs, including cash gifts, gift cards, and additional contributions to health savings accounts.

Other findings include:

  • The average value of incentives offered by the companies surveyed was $460—up significantly from the average of $260 in 2009.
  • Aside from incentives, employers spent on average $169 per employee on wellness programs in 2011, up from $108 in 2009.
  •  Of lifestyle management offerings, smoking cessation and employee assistance programs (EAPs) remain the most prevalent offerings, followed by healthy cafeteria food options (51%).
  • Currently, 46 percent of companies have health care advocates, with an additional 11 percent of respondents planning to introduce advocates in 2012.

How to Maximize Wellness Programs
Fidelity and the National Business Group on Health offered five steps to help maximize effectiveness of employee health programs.

  1. Secure commitment from senior management:  encouragement from leaders supports employee engagement.
  2. Align the program with the health risks and challenges of your workforce: identify and address the most pressing employee health issues at your club.
  3. Set realistic goals and measure the results: define desired behavior (weight loss) and track it.
  4. Offer incentives that appeal to the workforce: ask employees what would motivate them.
  5. Manage vendors by establishing performance requirements: hold vendors accountable to measurable results—especially if they fall short of objectives.

Program Benefits
Another wellness benefits survey conducted by Harris Interactive for Principal Financial Group, a global investment management company, indicates that employers who embrace a culture of wellness in their workplaces can benefit in return with health cost savings as well as healthier, engaged employees.

Findings from the survey show that 45 percent of workers chose better overall physical health as the top benefit to participating in a wellness program. Other top mentions included receiving a meaningful incentive from their employer for participation (30%) and reduced personal health care costs, greater chance of living a longer, healthier life and reduced stress (29% each). More than half of workers (55%) rated wellness activities offered by an employer as very successful or somewhat successful in improving health and reducing health risks.

Employee health programs are a win-win situation. Healthy employees are better employees and the little things that employers do to support a healthy lifestyle produce big benefits. What does your club offer in the way of health and wellness benefits? 

Cindy Vizza is NCA’s publisher and senior director of knowledge management.

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