Corporate Wellness Incentive Plans

After cost, poor employee engagement and inadequate communications and substructure are listed as the greatest challenges for businesses administering any health benefi t program.22

By law, corporations are required to explain any benefits or explicit conditions of employment to all employees – this is called “due process,” and it usually takes the form of a packet of information that new employees are asked to review and sign during orientation or, in the case of existing employees, a brief communication during open enrollment periods.

Corporations that only participate in the minimally necessitated due process communication of a Workplace Health Promotion Program, however, do a disservice to the initiative and the business.

Opinions about Health Care in companies represent one of the largest disjoins between management and workers. In discussing the need for savings, most companies (70%) believe their company effectively communicates about increasing Health Care costs, while only 34% of workers feel increasing Health Care costs impact their business’ ability to succeed.23 When it comes to conduct, 74% of companies believe their workers should be held largely accountable for improving, managing and maintaining health, yet only 4% of companies think that workers take part in these activities.

Under the proposed rules, the four specifications to be a bona fide Corporate Health Promotion Program are:

- The total reward that may be given to an individual is limited. The departments invited comments on the appropriate level of the reward, suggesting that a limit of 10 percent to 20 percent of the total expense of employee-only coverage may be appropriate.
- The program must be reasonably designed to promote great health or prevent disease for people in the program.
- The reward must be available to all similarly situated individuals. More specifically, the program must allow any individual for whom it is unreasonably diffi cult due to a medical condition to meet the Worksite Wellness Program standard (or for whom it is medically inadvisable to attempt to meet the Worksite Wellness Program standard) an opportunity to satisfy a reasonable alternative standard.
- All plan materials describing the terms of the program must disclose the availability of a reasonable alternative standard.
Source: United States Department of Labor Employee Benefits Security Administration

As Northwestern Memorial’s Kathryn Krivy says, “The most fundamental failure in any Employee Wellness Program is not communicating. You need to tell people what you’re doing and why you’re doing it. You have to get employees engaged and train them of what’s going on.”

A properly createed Company Health Promotion Program is designed to save a corporation more money with better participation. Still, a corporation must match its focus on program design with an equally strategic investment in efforts to engage staff members in the initiatives.

Lay out your case – Despite widespread recognition of increasing Health Care costs, workers remain skeptical that the problem impacts employer operations. In fact, only 53% of workers even believe what their employer communicates about the subject.24 Employers need to be more candid and forthcoming about the amount they spend on Health Care and how that relates to larger budgetary constraints and potential investments.

Says Motorola’s Saenz: “We share with employees that we have been able to maintain Motorola’s Medical Care spend trend below national average over the past decade due to their participation in our various Workplace Wellness Programs. This transparency is necessary to keep reminding people the reasons for our conduct.”

An effective strategy is to focus on the cost savings and overriding health benefi ts to the employee and not the corporation. By personalizing the information in this way, it produces a win-win scenario instead of presenting the program as a sacrifi ce on the part of the employee. Information must be presented through multiple channels, constructed in a way that makes sense to all levels of staff members, and offered to staff members, dependents and retirees.

Make it your own – Every Worksite Wellness Program will be different, and ought to reflect the culture of a business. While program areas will be determined by analyzing employee health risks, the actual offerings ought to be shaped by the nature of the business. Younger, more active employee communities may be attracted by different programs than an older or technicaloriented employee. Additionally, a global business with mobile staff members will have different needs than a business with one central location.

As noted earlier regarding PepsiCo’s HealthRoads, one strategy is for businesses to brand their Company Wellness Programs. Union Pacifi c Railroad (HealthTracks), General Motors (LifeSteps) and Caterpillar (Healthy Balance) all adopted this approach to help create recognition and a larger meaning around their efforts. Having a branded plan helps employees and other stakeholders see the larger goals/objectives of the Company Wellness Program, rather than focusing on isolated offerings.

Say it loud, say it proud – As a potential cost-saving initiative, Company Health Promotion Programs must be given the same executive substructure and internal commitment as any comparable corporation effort. Companies must not approach wellness as simply a preventive, financially-motivated program, but rather as an opportunity for the corporation to distinguish itself and become more competitive.

Jeffrey Treem, analyst, Edelman Change and Employee Program Engagement Group, says that effective communication about Workplace Health Promotion Programs should be integrated into existing corporation communication channels and vehicles. “This covers executive communication to external stakeholders,” he notes, “because this sends a powerful message back to workers about the importance of the programs. Workplace Health Promotion Programs should not be treated as merely an additional employee perk, but rather an innovative and strategic effort to reduce costs and create a healthier work environment.” Talk among yourselves – The most powerful champions of any Workplace Health Promotion Program will be the participants.

Companies must discover ways to facilitate discussions about the program among staff members. This could take the form of support groups, interactive media and the sharing of success stories.

However, since Corporate Health Promotion Programs touch on potentially private health topics, it is valuable communication remains positive and inclusive, while not pressuring workers. Discussion of wellness topics should be voluntary, though organizations may consider providing incentives and rewards for those willing to contribute. Motivation and information from peers is likely to carry more credibility and significance than messages from management.

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