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The value of incentives for participation in workplace wellness programs has increased this year averaging $329 in 2009, according to the results of a new survey of employers on the use of incentives in corporate wellness programs.

Incentives may range from $1 per pound for weight loss to annual premium reductions valued at more than $1,500. The most commonly used incentive is health insurance premium reductions, followed by merchandise/tokens and gift cards, found the survey, by Health2 Resources.

Paying employees to participate in worksite health and wellness programs is almost uniformly believed among employers of all sizes, with and without programs in place, to boost program success and return value.

Almost 2 out of 3 U.S. companies offer programs to keep employees healthy, and 66 percent of those offering programs also use incentives, with a healthy number showing a return-on-investment (ROI) of greater than $1 for each dollar spent, the researchers found.

The survey, now in its third year, tracks how much employers pay in incentives, what activities they incentivize, and how success and ROI is measured, said Health2 Resources.

Serious Investment In Wellness

The report on the survey results is called "How Employers Use Incentives To Keep Employees Healthy: Perks, Programs and Peers."

"During tough economic times, employees who take control of their health and are more engaged and active in their own health are valuable assets," said Katherine H. Capps, president of Health2 Resources. "We are not talking about $5 here or there."

For the first time many small- to mid-size companies were included in the survey, the company said, "revealing the extent of expansion of these programs beyond large companies." The survey explored several new trends, such as the role of primary care in prevention and health management programs and extension of programs to spouses and children.

We are talking about serious investment into productivity made by employers with as few as 200 employees, for as much as $1,400 a year per employee, Capps said. "Employers are taking control of healthcare costs by creating smart, effective new strategies to keep employees healthy, and to keep employees at work."

Key findings of the survey include:

• Employers offer cash, gift cards to spouses and family to keep them healthy. More than half of the companies surveyed offer health and wellness or disease management programs to spouses and a third extend the programs to other family members.
• Confidential health history questionnaires are an important starting point for worksite wellness and disease management. Two out of three employers – large, mid-size and small – offer a health risk assessment to employees, and nearly 3 out of 4 of those offer incentives to take it. Incentives to take thequestionnaire range up to $300 annually, with about 10 to 15 percent exceeding $300.
• Smoking cessation programs are the most popular health and wellness program offered. More than half of employers surveyed (53 percent) offer smoking cessation to employees, but weight management and physical activity programs are not far behind.
• Diabetes programs are the most popular disease management program offered. Among those employers that offer disease management programs, 92 percent offer diabetes programs, making them the most common disease management program offered in 2009.
• Company size matters, but doesn’t dictate value of incentives. Among large employers, a bigger percentage offers programs and incentives when compared to small- and mid-sized companies. But some organizations with as few as 210 employees are offering incentives valued at $1,450 per year to keep employees healthy, well above the average.

Health2 Resources said the percentage of companies successfully measuring ROI for health and wellness programs has "sharply increased" over the years, from 14 percent in 2007 to 73 percent in 2009. Some 83 percent of those who have measured say the programs return better than 1:1 on their investment. In growing numbers, employers are rewarding goal achievement during and after health and wellness program completion, the company said.

"Employers are becoming more sophisticated about measuring the return-on-investment from wellness and disease management programs, and today’s economic outlook dictates that these programs bring a positive ROI," said Sean Sullivan, president and CEO of the Institute for Health and Productivity Management.

"No other kind of health management program has been given the same scrutiny as health and productivity management in measuring its effectiveness in reducing total health-related costs, including sick days, disability claims and impaired performance at work," he said.

The company surveyed 372 small, medium and large U.S. companies employing 1.8 million employees. The goal of the survey was to determine the prevalence of employer-based programs to keep employees healthy and the use of incentives within those programs as a tool to encourage participation, engagement and program completion.

Address: Health2 Resources, 380 Maple Ave. West, Suite 206, Vienna, VA 22180; (703) 319-0957, www.health2resources.com.