Incentives matter.  

As American economist Steven Levitt said, “An incentive is a key—an often-tiny object with astonishing power to change a situation.” 

You experience this concept when you interact with a salesperson. If they make money based on commissions, you know how motivating those sales are to them—the commission is their primary incentive. However, incentives are not just sales-based and are just as relevant outside of economics. Incentive-based models can also apply to wellness.  

Unfortunately, health-related incentives often do not come into play until symptoms or conditions surface, which may mean it is too late. There are other incentives, especially when incorporating workplace wellness programs, which we will discuss shortly.  

Let us jump into the science of incentives (hint: a small reward-based investment can yield a significant return). 

The Science of Incentives (Sometimes, Reasoning Is not Enough) 

An incentive motivates someone to do something, often for a specific reward, which can drive behavioral changes. 

So, incentives and motivation are closely intertwined. However, not everyone is motivated by the same incentives. In certain circumstances, like wellness, one’s primary motivator may differ significantly from someone else’s. For example, a smoker may be motivated to quit after discovering his father has lung cancer, while another may be motivated to exercise to improve symptoms of depression.  

However, reasoning often only takes most people so far if they try to change a behavior, such as those surrounding poor eating habits or smoking, even if they know there is a risk concerning their future health. The reason to alter those problematic behaviors is clear based on the potential health outcomes—but for many, it is not enough. They require more to make long-term behavioral changes.  

Instead, many need incentives to remain motivated. This concept is the basis of the incentive theory of motivation, which has been closely studied within the workplace. While employees will have varying motivations for working hard, incentives help reinforce behavior. This theory proposes that people behave in a way that will result in tangible or intangible rewards like positive recognition, promotions, and monetary bonuses.  

When this concept is applied to workplace wellness programs, the results can be eye-opening for both employees and management. 

Incentives Drive Human Behavior and Actionable Change 

When building a wellness program, incentives are something to consider. You can help motivate employees to make long-term behavioral changes by providing rewards for participation and for hitting key milestones. Goal setting is made possible through the power of data, helping users and business leaders track and monitor progress.  

This strategy creates a domino effect, where the advantages of actionable change contribute to business success. The healthier and more engaged your team is, the more productive they will be, contributing to a healthier bottom line. So, leverage a reward system that contributes to lasting changes. 

Wellness incentives are anything you offer as a reward—cash, discounts, gift cards, wellness swag, etc. These incentives encourage your team to make healthy decisions, creating new behavioral patterns. Wellness becomes a higher priority, and over time, new behaviors form.  

Just some of the reasons to consider incentives for your wellness program include: 

• It reinforces good health and healthy behavior, significantly affecting a business’s success and productivity.  

• Creating an incentive-driven wellness program will strengthen your company’s wellness culture.  
• When you care for your team, they are more likely to remain engaged, helping you retain top talent while cutting costs associated with employee turnover.  

Understanding the Concept of Reinforcement 

Changes that come from incentive-based programs are based on reinforcement—the process of encouraging or establishing a pattern of behavior, especially by using rewards or encouragement. In this case, the goal is to build a healthier workplace by offering incentive-based programs.  

The science of incentives and reinforcement is most often associated with B.F. Skinner, who was a Harvard professor of psychology from 1958 to 1974. He was interested in how environmental variables influence behavior, believing consequences shape behavior. If you do not like the consequences of an action, you will be less likely to do it again. Whereas, if you like the consequences, there is a higher likelihood that you will repeat that behavior. This concept is known as operant conditioning—a type of learning where the consequences modify the strength of a behavior—either reward or punishment.  

Decades have gone by, and the research has continued. Years of studies reveal that consistency and timing are crucial when aiming to shape new behaviors. Complex behaviors are best learned via continuous reinforcement. Every time the desired behavior is performed, it is reinforced. 

Think of this basic principle of behavioral psychology, and you will benefit from a wellness program that is much more effective. People are driven to act based on the positive consequences they expect from their actions. For example, several Advanta clients use ActiveFit+ to rewards members for making decisions that prioritize their health and fitness. This customized program gives users a monthly cash bonus if they complete any of the following each month: 

• Work out at home for 12 or more days each month. Users record and submit workouts (our technology makes it easy to take selfies and get them verified) on the ActiveFit+ app. 
• Walk 10,000 steps a day (for at least 12 days). 
• Visit one of the 30,000+ participating fitness facilities on 12 or more days. 
• Complete any combination of the above activities for at least 12 days a month. 

People who are already motivated to alter their health patterns and get active are given that extra nudge to make it happen. The results are powerful.  

Elements to Consider 

There are several elements of the incentive theory that should be on your radar when creating a program or looking for a partner: 

• Valence: The attractiveness of a proposed incentive will encourage the degree to which individuals are motivated to pursue a set goal. In the case of workplace programs, the valence should be positive—such as seeking a monetary reward—instead of negative.  
• Expectancy: The likelihood that a specific action or behavior will result in the desired outcome. For example, if an employee tracks 20 hours of fitness classes, they may receive a cash prize. If people think that a desired outcome is in their control, such as completing 20 hours of fitness classes, they are more likely to be motivated to pursue the incentive (the cash prize). 
• Intrinsic vs. Extrinsic Motivation: Intrinsic motivation involves inherent satisfaction, self-fulfillment, or enjoyment, whereas extrinsic involves external rewards—like material possessions or monetary rewards.  

How Advanta Health Leverages the Science of Incentives 

The relationship between employee health and company success is well-defined. 

Unhealthy workers can be costly in terms of healthcare costs, absenteeism, disengagement, and low productivity. Whether an employee struggles with their mental health or has developed a chronic health condition, they are more likely to miss work. When they do not have the support they need, their diminishing health spills over into all aspects of their lives—including their job performance and willingness to contribute to business growth.  

In contrast, organizations that help their employees achieve positive health show they care and are taking action to improve the overall wellness of their team.  

Advanta Health has created a holistic incentive-based program that seamlessly integrates into existing wellness programs. Users can earn customized incentives for hitting milestones surrounding physical activity. Your company chooses these incentives, including gift cards, HSA contributions, monthly cash deposits, or premium reductions.  

As users participate, they earn credits. These credits are earned by visiting one of 30,000+ designated fitness facilities, completing a physical or mental fitness activity at home, or logging 10,000 steps. Users can easily set and track their monthly goals, helping them remain mindful of their progress. 

As users receive rewards, it will reinforce healthy behaviors, creating a trickle-down effect. The healthier they are physically, mentally, and emotionally, the more likely they will remain engaged and productive. Over time, new behaviors become the norm—healthier decisions come naturally, and the overall health of your team strengthens.  

Build a Healthier Workforce with Advanta 

If you are ready to implement a wellness program with benefits, Advanta Health is it. Trusted by over 3,000 organizations just like yours, Advanta allows you to boost, track, and reward your team through incentives and a culture that believes in a healthier life and a more productive workplace.  

If you have any questions, contact the Advanta team and get your demo today!