Wellness programs offered by employers can mean many different things. It's not all strict health programs. Financial incentives are also a necessary part of a comprehensive wellness program, and if applied properly are proven to be effective catalysts for positive behavioral change.
These are the findings from the report, Incentivizing Health: Unlock the Power of Financial Rewards, from IncentFit. They say that financial incentives are monetary rewards that are provided by a company with the intention of increasing motivation among employees and guiding them towards certain behaviors.
There are three common design structures for financial incentives:
- Loss aversion
- Gain-framed incentives
- Variable reinforcement
Loss aversion incentives motivate people to avoid losing out on a desired reward or benefit. The report says that people are more likely to avoid loss than they are to pursue gains. For example, a study group was given $1.40 per day for meeting a goal of 7,000 steps. Another group was given $42 a month and deducted $1.42 if their goal was not met. The loss aversion incentive had a more significant impact on physical activity than others, according to the report.
Continue Reading for Free
Register and gain access to:
- Breaking credit union news and analysis, on-site and via our newsletters and custom alerts.
- Weekly Shared Accounts podcast featuring exclusive interviews with industry leaders.
- Educational webcasts, white papers, and ebooks from industry thought leaders.
- Critical coverage of the commercial real estate and financial advisory markets on our other ALM sites, GlobeSt.com and ThinkAdvisor.com.
Already have an account? Sign In Now
© 2024 ALM Global, LLC, All Rights Reserved. Request academic re-use from www.copyright.com. All other uses, submit a request to [email protected]. For more information visit Asset & Logo Licensing.
