Corporate Wellness Incentive Plans

Unless specifically stated otherwise, most organization-employee relationships in the U.S. are governed by the principle of at-will employment. Under this system a organization, or the employee, can terminate the relationship without any necessitated showing of cause. This at-will standard gives private corporations substantial power in governing the behavior of workers. In this environment, corporations can Finding Wealth Through Wellness 10 creatively design Corporate Health Promotion Programs based upon their specifi c corporate culture. Corporate Health Promotion Programs generally take three main forms:

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

Mandatory Worksite Health Promotion Programs – Some businesses require, or ban, certain health-related actions. These can take the form of mandatory Health Risk Assessments for employees and limitations 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 businesses to regulate off-duty actions. Additionally, some employees may fi nd it diffi cult to comply, forcing businesses into the uncomfortable situation of punishing an otherwise beneficial employee.

In the short-term a mandate-based Corporate Health Promotion Program can lead to an increase in turnover, as employees either choose to leave or are fi red for noncompliance. In the long-term, the policy may prevent the company from hiring an otherwise qualifi ed applicant, or may serve as a deterrent for individuals thinking of the company. 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 lead business operations. If a business emphasizes trust and individual responsibility, then a mandate-based program will likely cause more dissension than it would in a business that already heavily regulates business conduct. Moreover, a work environment with a big disengaged population will likely have poor participation in a voluntarybased program. When calculating cost savings, companies need to take a wider view and consider the effects on long-term employee engagement.

In 2005, Michigan-based insurance benefits provider Weyco instituted a smoking ban for all of its nearly 200 staff members. Employees 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 employers ask staff members to self-report behavior. Four staff members (more than 2% of the total labor force) left Weyco as a result of the policy. A year prior to the ban the organization createed 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 reported that 20 staff members quit smoking through this program.20 Employees were told they had one year before the total ban would go into effect. Under the new Workplace 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.