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The use of incentives with health and wellness programs increased, while the use of incentives with disease management programs declined, according to a survey conducted by Health2 Resources and paid for by IncentOne, a provider of incentive solutions for employers.
The results were culled from 225 major U.S. employers who are members of the National Association of Manufacturers or the ERISA Industry Council.
The value of incentives is typically $100 to $300 per person, per year, the survey said.
Incentives were paid out in gift cards, cash bonuses and premium reductions and were used to help "shape healthy behaviour," Katherine Capps, author of the study, said in a telephone interview.
Gift cards became the top incentive choices in 2008, with usage rising to 28% from 17% in 2007, while the use of cash bonuses and lower premiums declined during that period.
The change in incentive choices was likely due to administration costs, Capps said.
More than one-quarter of those employers offering programs have successfully measured their return on investment, up from 14% in 2007, and of those who take that measure, 83% said they more than broke even compared with 66% in 2007.
"There is much greater emphasis on (return on investment)," Capps said, adding that more and more companies are trying to get an accurate measurement. "This is still an evolving science."
Maintaining employee motivation over time and measuring the effectiveness of their programs were cited as major challenges by respondents in the 2008 and 2007 surveys.
"As employers continue to experiment in ways to improve the health, wellness and productivity of their work force, incentives are being recognized as an important part of a health-management strategy," the survey said.
