New research from Mercer LLC shows a 3% increase in use of carrot style rewards in the context of health and wellness programs. These health and wellness rewards are largely tied to employees’ achieving a certain change or reaching a certain biometric range for preventable conditions like obesity, high cholesterol, high blood pressure, etc. According to the research, 23% of large employers are using positive reinforcements as health and wellness rewards.
A Towers Watson study from September also indicates an increase in outcome-based health and wellness rewards, with 18% using them currently and 10% planning to add programs in 2015. While some health and wellness industry professionals believe the days of spot rewards are over, in favor of an organizational shift towards discounting insurance costs, this shift is only being observed by larger firms. While smaller businesses cannot absorb the financial impact of larger policy discounts, spot rewards offer an alternative with the potential to scale up or add larger rewards at a later date.
The increased use of health and wellness rewards at a variety of levels, from small spot rewards like gift cards to large discounts on health insurance, signals a larger trend. Health and wellness programs and health and wellness rewards are becoming a mainstream, integral part of the way benefits and healthcare are delivered from employers to employees. Health and wellness rewards has become a mechanism for employers to make healthcare more affordable for employees, while also ensuring their workforce is healthy and productive, and healthcare is also affordable at the organizational level.