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Carrots and Sticks Highly Effective in Managing Employee Wellness

Posted, by Deborah Merkin
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According to a new study from the Midwest Business Group, more than 80% of the nation's largest employers use a carrot and stick approach when it comes to their corporate wellness program. Using this approach allows employers to reward for desired behavior, while creating penalties for employees who participate in unhealthy behavior, such as smoking. As the full implications of the Affordable Care Act take effect and employee benefits costs continue to rise, employers place more value on employee healthcare benefits savings, by both maximizing the health of employees and lowering the cost of their healthcare benefits. Here are some quick facts about employers who use a carrot and stick incentive strategy to manage employee wellness.

1)      71% of employers found the incentive strategy to be successful.

2)     54% of employers tied their incentives to “outcome-based” employee wellness measures, such as rewarding an employee who achieved a specific target like a BMI (body mass index) of 25.

3)      94% of employers use onsite clinical programs to measure blood pressure, BMI, glucose or a worker’s waist circumference. This allows employers to measure employee wellness constantly and keep the wellness program top of mind for employees. The key to having a successful carrot/stick employee wellness program is to incentivize employees with carrots they find valuable. Using flexible rewards like gift cards allows employees to choose their own reward and how they want to spend it. Giving employees gift card choices for health and wellness retailers such as CVS/Pharmacy, GNC, or NutriSystem, allows employees to select rewards that work for them and perpetuate their healthy lifestyles. 

For more information on how to craft a carrot/stick employee wellness program check out this article in Forbes.

Topics: B2B Gift Cards, Gift Card Incentives & Rewards, Workplace Health & Wellness, General Gift Card, Employee Incentives & Rewards

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