Wellness Program Incentives

Unless specifically stated otherwise, most organization-employee relationships in America are governed by the principle of at-will employment. Under this system a organization, or the employee, can terminate the relationship without any needed showing of cause. This at-will standard gives private businesses large authority in governing the behavior of employees. In this environment, businesses can Finding Wealth Through Wellness 10 creatively design Workplace Wellness Programs based upon their specifi c corporate culture. Workplace Wellness Programs generally take three main forms:

Voluntary Workplace Wellness Programs – The most popular form of employee Workplace Wellness Program, in most cases they are made available to staff members but participation (or lack thereof) is not linked to any type of consequence. Due to ineffective communication, frequently staff members are either unaware of these offerings or confuse them with insurance-based medical care. Incentive-based – Workplace Wellness Programs based on incentives reward staff members for participation in Workplace Wellness Program activities. Incentives frequently comprise lower Medical Care premiums, health club membership or personalized support offerings. In these programs, employees’ behavior can be linked to a particular reward.

Mandatory Worksite Health Promotion Programs – Some companies require, or ban, certain health-related actions. These can take the form of mandatory Health Risk Assessments for employees and bans on smoking or alcohol use. While mandating behavior is an effective method to eliminate high-risk behavior, the cost savings must be measured against the potential message sent to existing and prospective employees. Given that employees are already under various levels of scrutiny in the workplace, individuals may resist attempts by companies to regulate off-duty actions. In Addition, some employees may fi nd it diffi cult to comply, forcing companies into the uncomfortable postion of punishing an otherwise constructive employee.

In the short-term a mandate-based Workplace Health Promotion Program can drive to an increase in turnover, as staff members either choose to leave or are fi red for noncompliance. In the long-term, the policy may prevent the corporation from hiring an otherwise qualifi ed applicant, or may serve as a deterrent for individuals thinking of the corporation. Limits in recruiting, for instance, led CNN to rescind a 13-year ban on hiring smokers.18

Corporations need to make sure that Worksite Health Promotion Programs are aligned with the values and culture that guide employer operations. If a employer emphasizes trust and individual responsibility, then a mandate-based program will likely cause more dissension than it would in a employer that already heavily regulates employer conduct. Moreover, a work environment with a large disengaged population will likely have poor participation in a voluntarybased program. When calculating cost savings, employers need to take a wider view and consider the effects on long-term employee program engagement.

In 2005, Michigan-based insurance benefits provider Weyco instituted a smoking ban for all of its nearly 200 staff members. Staff Members are subject to random testing and if they fail a mandatory breathalyzer test, they will be fi red. It is believed that Weyco is the first organization to use testing to enforce a smoking ban – most companies ask staff members to self-report behavior. Four staff members (more than 2% of the total workforce) left Weyco as a result of the policy. A year prior to the ban the organization started a $50 smoking fee, which would be waived if a employee passed a nicotine test or agreed to take a smokingcessation class. Weyco’s president Howard Weyers published that 20 staff members quit smoking through this program.20 Staff Members were told they had one year before the total ban would go into effect. Under the new Corporate Health Promotion Program, Weyco does offer $35 a month for staff members who want to use a fi tness center and another $65 a month for staff members who meet fitness goals and objectives.