State:
March 25, 2013
Most employers use monetary incentives for health program participation, says survey

Incentives are playing an increasingly important role in helping employers to drive participation in health programs and encourage employees to take actions to improve their health, according to new survey findings from Aon Hewitt.

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Aon Hewitt's survey of nearly 800 large and mid-size U.S. employers, representing more than 7 million employees, found that 83 percent offer employees incentives for participating in programs that help employees become more aware of their health status. These actions may include taking a health risk questionnaire (HRQ) or participating in biometric screenings.

Of the 83 percent of employers that offer incentives for these types of programs:

  • 79 percent offer incentives in the form of a reward.
  • 5 percent offer incentives in the form of a consequence
  • .
  • 16 percent offer a mix of both rewards and consequences.
Aon Hewitt's survey shows almost two-thirds (64 percent) of employers offer monetary incentives of between $50 and $500, and nearly one in five (18 percent) offer monetary incentives of more than $500.

"Employers recognize the first step in getting people on a path to good health is providing employees and their families with the opportunity to become informed and educated about their health risks and the modifiable behaviors that cause those risks," said Jim Winkler, chief innovation officer for Health & Benefits at Aon Hewitt.

Employers also reported seeing some positive impact from offering incentives, with more than half indicating they saw improved health behaviors and/or an increase in employee engagement. In addition, almost half said they believe there was a positive impact on employee morale, satisfaction and/or attitudes, and 44 percent saw changes in health risks.

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