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Companies Continue to Add Wellness Programs, Incentives Motivate Employees

April 16, 2009 — There’s one perk the recession hasn’t hit: wellness and health-management programs.

A new Watson Wyatt/National Business Group on Health survey found that in an effort to promote healthier behaviors among their workers, companies continue to add wellness programs and are finding greater success by offering workers financial incentives for their participation.

Survey results show that 58% of companies offer lifestyle improvement programs, which is up from 43% in 2007; 56% offer health coaches, up from 44% in 2007; 52% of companies offer weight-management programs, up from 42% in 2007; health-risk appraisals are offered by 80% of companies, up from 72% in 2007.

"Employers continue to see gains from promoting wellness and health management initiatives," said Scott Keyes, senior group and health-care consultant at Watson Wyatt. "Effective financial incentives are one of the keys to encouraging worker participation in these programs — an effort that not only improves the health of workers but also helps reduce costs."

The survey found that companies that offer financial incentives reported significantly higher participation in lifestyle management and wellness programs. However, despite the rapid rise in obesity rates in the United States, 40% of companies reported that less than 5% of their workers participate in weight-management programs.

The survey found that companies that offer incentives for health-risk appraisals are on the rise with 61% of employers offering them (up from 53% last year). Other programs that employers offer incentives:

• 40% in 2008 and 2009 offered incentives for smoking cessation
• 34% (31% in 2008) for weight management
• 73% (53% in 2008) offered full coverage of preventive services

Survey results show that even moderate incentives can help engage employees in healthy behaviors. Financial incentives between $51 and $100 can increase participation in smoking cessation and weight-management programs and encourage workers to get biometric screenings. Incentives greater than $100 encourage greater participation in health-risk appraisals. The survey found that financial incentives have limited impact on the amount of participation in disease-management programs.

"The relationship between the amount of the incentive and the level of program participation among employees is strong," said Sherri Potter, senior group and health-care consultant at Watson Wyatt. "A properly structured incentive program does much more than protect investments in health management; it creates a healthier and more productive workforce."

To read the full report, log on to www.watsonwyatt.com/2009nbghsurvey.

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