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Workplace Wellness: Increasing Use of Outcomes-Based Incentives

by | Jan 21, 2015 | Miscellaneous

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Carrots2Employers often use a range of tactics to increase the effectiveness of their workplace wellness plans. According to Business Insurance, one tactic that continues to grow is outcomes-based incentives. In other words, rewarding employees on measurable, documentable progress.

The piece calls out results from two recent surveys:

  • “Twenty-three percent of large employers polled in a survey released in December by Mercer L.L.C. said their wellness programs include incentives tied to an employee's achieving — or at least demonstrating progress toward — a certain health status or biometric reading, up from 20% in 2013.”
  • “Similarly, a September survey by Towers Watson & Co. found that 18% of employers already use outcomes-based wellness incentives, while another 10% plan to do so this year.”
  • “Another 48% of employers plan to add a results-based incentive strategy to their wellness program by 2016 or 2017, according to Towers Watson's survey.”

Another trend the piece notes: “Value-of-investment metrics as an alternative way to measure a wellness program's positive and/or negative effects.”

And there's this interesting take on ROI: “Unlike the cost/benefit-oriented return-on-investment assessments many employers use to gauge their wellness programs' financial viability, experts say value-of-investment assessments examine the breadth of a wellness program's cost-effectiveness relative to an employer's other operations.”

 

Written By Mike Veny

By Jane Doe, Certified Corporate Wellness Specialist

Jane Doe is a leading expert in workplace wellness with over a decade of experience in developing and implementing successful wellness programs. Her passion for creating healthier work environments has helped numerous organizations enhance employee satisfaction and performance. Connect with Jane to learn how you can integrate wellness into your corporate strategy.

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