{"id":30695,"date":"2024-10-21T06:38:26","date_gmt":"2024-10-21T10:38:26","guid":{"rendered":"https:\/\/www.wellable.co\/blog\/?p=30695"},"modified":"2024-10-21T08:11:18","modified_gmt":"2024-10-21T12:11:18","slug":"how-to-pick-the-best-reward-structure-for-your-wellness-program","status":"publish","type":"post","link":"https:\/\/www.wellable.co\/blog\/how-to-pick-the-best-reward-structure-for-your-wellness-program\/","title":{"rendered":"How To Pick The Best Reward Structure For Your Wellness Program"},"content":{"rendered":"\n

A successful wellness program<\/a> doesn\u2019t just rely on engaging activities\u2014it also hinges on a well-chosen reward structure that appeals to employees\u2019 interests and keeps them coming back. Whether you\u2019re aiming to inspire health-conscious employees or gently nudge to those beginning their wellness journeys, the rewards system you select can greatly influence your program\u2019s success.<\/p>\n\n\n\n

Since there are many reward models to choose from, the challenge lies in finding an arrangement that fits your company\u2019s goals and budget while keeping employees engaged. This article will explore different reward structures, outline their differences, and help you choose the best system for driving authentic participation in your unique wellness program.<\/p>\n\n\n\n

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Why Do Rewards Matter In Wellness Programs?<\/h2>\n\n\n\n

A rewards program<\/a> can serve as a powerful motivator and reinforce positive behavior change. When thoughtfully selected, rewards can elevate a wellness program from a “check-the-box” initiative to a meaningful cultural driver within an organization.<\/p>\n\n\n\n

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Boosts Engagement<\/h3>\n\n\n
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Rewards give employees a tangible reason to join wellness programs, especially those who might otherwise be reluctant. Continuous programs<\/a> that offer $200 or more per employee per year have been shown to increase engagement by over 60%. Nonetheless, even smaller budgets can stretch far\u2014team prizes like catered lunches or useful company swag (e.g., branded yoga mats) motivate employees to regularly participate in wellness programs.<\/p>\n\n\n\n

Avoid this pitfall: <\/strong>Programs that exclusively reward top performers can discourage less competitive employees from participating. The goal of a wellness program is to engage everyone, particularly those who need an extra push to adopt healthier habits. If the same participants are always recognized, others may feel excluded and lose interest. Providing incentives through raffles ensures everyone has a chance to win simply by participating, which promotes broader involvement and prevents disengagement among less competitive individuals.<\/div>\n\n\n\n

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Elevates Company Culture<\/h3>\n\n\n\n

Aligning rewards with the company\u2019s core values can make a wellness program feel more authentic and culturally relevant. For example, offering rewards through Global Giving<\/a>, which allows employees to donate to charitable causes, adds a mission-driven component that aligns with many organizations\u2019 values (especially those focused on corporate social responsibility).  <\/p>\n\n\n

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Additionally, group rewards (e.g., catered team lunches, team outings) strengthen relationships and align with programmatic goals of increasing participants\u2019 sense of community. By combining value-driven and community-building components into rewards, a program becomes more seamlessly integrated into company culture.<\/p>\n\n\n\n

Avoid this pitfall: <\/strong>Offering rewards that conflict with the company\u2019s mission can weaken the impact of a wellness program. For example, a company that embraces sustainability and minimalism as core values should avoid rewarding employees with high-end luxury items (e.g., expensive electronics, luxury brand gift cards). Instead, this organization might offer eco-friendly rewards (e.g., reusable products, donations to environmental causes) to align incentives with broader cultural goals.<\/div>\n\n\n\n

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Enhances The Wellness Experience<\/h3>\n\n\n
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Integrating rewards into benefits packages can help promote and increase the perceived value of the program. For example, some companies offer premium differentials (lower health insurance premiums for employees who participate in wellness activities). Others might provide lifestyle spending accounts<\/a> (LSAs), gym reimbursements, or extra paid time off (PTO). These benefits-based rewards show a commitment to employees\u2019 long-term well-being.<\/p>\n\n\n\n

Avoid this pitfall: <\/strong>Confusion about rewards (e.g., unclear criteria) can diminish their value, making employees feel disengaged from the program. To prevent this, clearly communicate how rewards work and what benefits are available. Wellable\u2019s benefits navigation tool<\/a>, <\/strong>which includes <\/strong>customization capabilities for bulletin boards, makes it easy for employees to see exactly what rewards are available and how to access them.<\/div>\n\n\n\n

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How Are Rewards Earned?<\/h2>\n\n\n\n

The way rewards are earned\u2014whether through points accumulation, performance, or participation\u2014directly influences motivation and engagement. To maximize impact, it\u2019s often beneficial to vary reward structures within the program based on the specific activities or goals being incentivized, as each system offers unique advantages and challenges. However, no matter the structure, rewards must always feel fair and attainable to encourage widespread participation.<\/p>\n\n\n\n

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Points-Based Rewards<\/h3>\n\n\n\n

In a points-based reward system, employees earn points for completing wellness activities (e.g., attending fitness classes<\/a>, tracking a certain number of meditation minutes). These points can then be redeemed for rewards. <\/p>\n\n\n\n

Continuous wellness programs,<\/a> which utilize a points-based structure, are effective because they create ongoing incentives for participation. They also provide autonomy\u2014employees can accumulate points at their own pace and choose how to redeem them based on individual preferences.  <\/p>\n\n\n\n

Regularly update continuous programs with fresh themes, challenges, or initiatives to maintain interest over time. For example, introducing a new wellness focus each month\u2014such as mental health one month and physical activity the next\u2014prevents the program from becoming monotonous. Clear and consistent communication about updates to the program and how points are earned ensures employees are engaged, informed, and motivated to participate regularly.<\/p>\n\n\n\n

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Performance-Based Rewards<\/h3>\n\n\n
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A performance-based system recognizes and compensates elite performers in a wellness program. For instance, employees might be rewarded for taking the highest number of steps in a month or for winning a fitness challenge.<\/p>\n\n\n\n

This structure can push highly motivated employees to excel; however, it\u2019s important to balance performance-based rewards with other methods to ensure that the program doesn\u2019t inadvertently limit engagement to just the top achievers.<\/p>\n\n\n\n

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Participation-Based Rewards<\/h3>\n\n\n\n

Participation-based rewards encourage involvement regardless of performance or outcomes. Employees are rewarded for simply taking part in wellness activities, making them an inclusive way to foster broader engagement. For example, employees might receive a company-branded water bottle for signing up and participating in a hydration challenge<\/a>. <\/p>\n\n\n\n

This system is particularly beneficial for motivating employees who may not be as health-conscious or active. By lowering the barrier to entry, participation-based rewards encourage all employees to take steps\u2014no matter how small\u2014toward improving their well-being.<\/p>\n\n\n\n

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Event-Based Rewards<\/h3>\n\n\n
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An event-based rewards system offers incentives for attending specific wellness-related activities or events (e.g., webinars<\/a>, health fairs<\/a>). Offering raffle entries for attending an event can drive broad participation and build awareness around health-related topics.<\/p>\n\n\n\n

Consider rewarding active engagement (e.g., participating in discussions or completing follow-up activities post-event) and recognizing those who attend multiple events. This can deepen involvement and build momentum around health education over time.<\/p>\n\n\n\n

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Outcome-Based Rewards<\/h3>\n\n\n\n

Outcome-based rewards incentivize employees to achieve specific health goals, such as lowering cholesterol or getting a flu shot. This data-driven structure often uses objective measurements to determine if an employee has reached a goal. For instance, a company might reward employees who complete an annual physical through Wellable\u2019s Clinical Event Verification<\/a> tool.<\/p>\n\n\n\n

While outcome-based rewards can be effective, they may also be more difficult to implement, as they require careful measurement and monitoring. It\u2019s important to set realistic, attainable goals to avoid discouraging employees who may struggle to meet them.<\/p>\n\n\n\n

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What Types Of Rewards Can Be Offered?<\/h2>\n\n\n\n

Choosing the right incentives<\/a> for a wellness program depends on the company\u2019s goals, budget, and employee preferences.<\/p>\n\n\n\n

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Monetary Rewards<\/h3>\n\n\n
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Monetary rewards are straightforward and universally appealing because they have immediate financial value and provide flexibility. They\u2019re best suited for organizations seeking a versatile, customizable structure that can be adjusted to fit different budgets and employee preferences. Common monetary rewards include:<\/p>\n\n\n\n