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New Survey Reveals How Much Employers Spend on Incentives for Health Management Programs
Date:6/26/2008

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The survey of 225 major U.S. companies employing 7.6 million employees also delved into employer expectation for ROI for health and wellness programs, finding that 83 percent of those who have measured are seeing program returns of better than break-even. The percentage of employers who have successfully measured ROI for their health and wellness programs almost doubled since last year, but still remains less than 30 percent. Employers are using other measures to evaluate program success, such as completion of health risk assessments and program participation. When it comes to incentives, employers are much more likely to reward program participation and completion than to reward employees for meeting specific program goals, such as smoking cessation or losing weight.

"More employers have learned that investment in their employees' health is smart -- it brings a positive return," said ERIC President Mark Ugoretz. "But directing resources towards workers' health must be balanced with an understanding of how incentives work within these programs. This survey shows that employers are serious about understanding the business case for incentives for employee engagement and participation. They want to make the most of these programs that can both lower costs and improve productivity."

Companies offer incentives for programs and behaviors

Behaviors earning incentives- 2008 Only % using incentives

Participation in program 48%

Completing a program 38%

Signing up for/enrolling in program 25%

Achieving outcomes/goals during program 16%

Achieving outcomes/goals after program 12%

Maintaining outcomes/goals after program 6%

Leading groups to participate in program 2%

Recruiting others into program
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SOURCE IncentOne; NAM; ERIC
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