by Kimberly Hanson, vice president of sales, Hallmark Insights
As valuable as health risk assessments (HRA) are, they often suffer from the same inertia that plagues healthy living: “It’s a great idea, but I just don’t have time to do it today.” Fortunately, decades of research in human behavior have provided a way to overcome this problem: Encourage participation through a well-designed incentive program.
Businesses have long known the merit of using incentive programs to align employee behavior with corporate objectives using tangible rewards.
Motivating healthy behaviors, such as completing HRAs, is essentially no different. Targeted initiatives can be created that reflect the pursuit of good health and lay the groundwork for a culture that embraces wellness. A study by Optum Health showed 10%-15% participation in health and wellness programs where no incentive was offered. But when incentives were offered, participation rose significantly, with trends increasing in relation to the value. Their results showed that 60% participation was reached at the $75 level, and it increased to 80% at the $250 level.
A point worth noting, though, is that while the typical reward for completing an HRA need not be exorbitant, we have moved past the use of “T-shirts and water bottles” to accomplish these goals. A better alternative is to design a strategy that recognizes healthy behavior with a reward commensurate with the activity. So by taking a strategic rather than tactical view of wellness, incentives can put a series of positive behaviors into motion.
HRA participation is a good start, but the real payoff comes when incentives can be used to promote lifestyle changes…when people can be encouraged to exercise, lose weight, or quit smoking. A survey conducted by PricewaterhouseCoopers queried senior leaders about what they felt was the most promising option for reducing health care cost increases. “Providing financial incentives for employees to live healthier lifestyles” was chosen by 80%.
Workplace wellness should focus on the entire population, not just the high-risk categories, notes Dee Edington of the University of Michigan Health Management Research Center. It’s vitally important to “keep the low-risk people low-risk,” he says. His data demonstrate that gains from high-risk populations can be wiped out by losses for low-risk individuals who suddenly find themselves facing unexpected issues. Healthy living must therefore be given consistent, ongoing attention for everyone in the workplace if the real payoff is to occur.
Incentives can be the centerpiece of a workplace health and wellness initiative, but their effectiveness increases when they become part of a larger campaign. Integrated programs, which include targeted communications, progress tracking, and leadership support, are much more effective in helping organizations reach their wellness goals than incentives alone.
Edington lists these factors as critical to the success of any wellness initiative:
- Having senior leadership establish a vision of health and well-being
- Linking environmental policies and procedures to the overall vision of wellness
- Making program initiatives available to everyone, including family members
- Measuring results as well as decisions to gain insight and make improvements
- Using appropriate incentives to promote participation, commitment, and action
As programs become more far-reaching and comprehensive, they set into motion the creation of a culture that supports healthy living. This means taking a wide-angle lens to the organization and uncovering the implicit, but negative messages that may be inadvertently sent. Does the cafeteria offer many tasty and nutritious choices? Are there opportunities for exercise, such as the promotion of stair-climbing programs or walking trails that can be established in the immediate community? Does the leadership team talk openly about healthy habits? These are just a few ways that wellness can turn from a short burst of activity once a year into an integral focus with significant benefits for all constituents.
Kimberly Hanson is vice president of sales at Hallmark Insights, a wholly owned subsidiary of Hallmark Cards Inc. Joining the Hallmark Insights team 2008, Kimberly oversees strategic and consultative selling and client support initiatives for the company’s sales team. Kimberly can be reached at Kimberly.hanson[at]hallmarkinsights.com. A full version of this white paper will be available at AHIP Engage Conference in June.