Read Part 1 in our wellness incentivization series here: The Science of Incentives, Part 1.

Why are Wellness Incentives Necessary? 

The benefits of wellness programs should be self-apparent. A healthy employee lives longer. A healthy workforce is more productive, equating to higher profitability. The value proposition is an easy decision. So, why are wellness incentives necessary? 

It is important to take a step back and remember a basic fact of human behavior—making healthy behavioral changes (and making the changes stick) is highly challenging. Many of us vow to get more sleep throughout the week or to get into a workout routine. Nearly everyone has been through several diets and tried other weight loss programs. The hardest part of adopting these new, healthy habits is just getting started. The first step is always the most challenging. The difficulty of creating positive changes can become so overwhelming that it becomes a barrier to wellness program enrollment and engagement. 

Wellness incentives give employees the needed courage and fortitude to start healthy behavioral changes. Depending on the nature of your incentives, they might motivate program participants throughout the program.  

For instance, you might offer prizes when participants reach milestones throughout the program. This is a fantastic way to keep employees enrolled in your programs and avoid hollow engagement, which is when participants go through the motions without making healthy changes. 

Why Wellness Incentives Work 

Wellness incentives are effective, thanks to another basic truism about human behavior: we all enjoy rewards. The thought that we can get something for free is a powerful motivator. Combining that with the positive outcomes of healthy behavioral change and wellness incentives becomes a powerful encouragement. 

The science of incentives, in general, is sound. They are ubiquitous in nearly every industry. Think of the incentives the automotive industry rolls out every year just before new models are set to be released. Interest rate rebates, doubling the value of trade-ins, or an initial time period with no monthly payments are chestnuts in the industry at this point, and for good reason. These incentives drive foot traffic into car dealerships and help close many deals. 

You can use this quirk of behavioral science to “sell” wellness programs to your employees. Wellness incentives also keep them engaged throughout the program, helping your company reap the benefits of a healthy workforce. 

Finding the Incentives That Work 

Incentives work well, but they are not all the same. Finding the incentives that work for your business can be a trial-and-error process. You might try some things, monitor enrollment and engagement metrics, and see how the incentives have impacted your wellness programs.  

As you weigh your options and analyze the results, placing incentives into high-level categories is helpful. You will find that some types of incentives click with your workforce more than others.  

Here are several categories that should cover most incentive types: 

Compliance Incentives 

Compliance-based incentives reward employees for completing specific healthy activities. For instance, offer a gift card for everyone who completes yearly health screenings. 

Financial Incentives 

Cash, or equivalents such as gift cards, are typically effective in most workplaces since money holds the same value for all employees. Other types of financial incentives connect with employees, too, such as a discount on health insurance premiums in exchange for completing a health risk assessment. 

Outcome-Based Incentives 

Outcome- or results-based incentives reward participants for reaching program milestones. If, for example, the goal of a walking program is to work up to a certain number of miles per week, you could reward participants when they reach the halfway point. 

Participation Incentives 

Participation incentives are flexible and can be used to reward program enrollments or high engagement levels. If your wellness management system tracks points, you might consider bonus points for participation milestones as an added incentive. 

Progress-Based Incentives 

Like participation incentives, progress-based incentives specifically reward completed actions throughout a program. These are also flexible since they can be used to meet daily goals or reach a program’s conclusion. 

Social Incentives 

Social incentives are a way for program participants to show off their progress. They might take the form of badges or reach a status within the wellness management program. Recognizing highly engaged participants at group meetings is another effective social incentive. 

Surprise Incentives 

Everyone loves a surprise, so offering an unexpected reward during a program is an excellent way to recognize wellness program participants. A gift card or a free lunch for no particular reason can be a powerful motivator to keep pushing through a program. 

The Incentive Practices to Avoid 

While some incentives are suited for some company cultures and not others, a handful of approaches typically do not work well anywhere. These incentives can boost enrollment and engagement levels in the short term but have negative long-term impacts. 

This includes the practice of only offering incentives at the beginning of a program. Without continuous motivation to keep participating, you risk losing a significant number of participants. Instead, keep the incentives going throughout your wellness programs. Remember the categories outlined above and apply the ones that resonate with your workforce. 

You also do not want to limit incentives to program completion. This is the opposite of offering incentives only at the program’s beginning, but it has the same effect. Employees who need that little extra incentive to keep going will lose motivation without recognition along the way. 

At the same time, you do not want to offer too many rewards. If participants can regularly earn incentives for about anything in the program, it can devalue all your incentives. Finding the right balance between too little or too many rewards can take some work, but you can use engagement metrics to help you find the “just right” spot. 

And finally, do not rely on negative reinforcement as an incentive. In general, negative reinforcement can hurt wellness program enthusiasm and engagement levels. Ensure you reward positive achievements instead of withholding incentives in response to negative outcomes. 

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!