employer incentives for workforce health & productivity

IBI RESEARCH - 20081

IBI Incentives Research

Source: “Employer Incentives for Workforce Health and Productivity,” IBI, October 2008

Employer Incentives for Workforce Health & Productivity

IBI Research on Health & Productivity Incentives

Purpose: Identify incentives and disincentives used, their goals, their relative effectiveness and desired changes

Key Insights: Incentives are used more frequently to encouraging health and productivity

than disincentives, though how they are defined is important. Types of incentives used vary widely, while requiring higher premiums and

copays are the principal penalties for noncompliance. Goals for offering incentives are far more likely to encourage participation

than outcomes that directly impact on the bottom line. Employers place substantial value both for incentives and disincentives. Employers are unlikely to use the most effective incentives or disincentives. Employers are likely to be new to providing incentives and disincentives and

still are experimenting with the fit between culture, effectiveness and affordability.

The full study is available to members of IBI.

Commentary is available in Notes view.2

73%

19%

0%

30%

60%

90%

I ncentives Disincentives

Use of Incentives/Disincentives

3 Source: “Employer Incentives for Workforce Health and Productivity,” IBI, October 2008

43%

45%

53%

62%

63%

25%

25%

27%

28%

39%

37%

Cash

Co-pay reduced

Flex account

Team prize

Premium

RTW salary

Lottery

Cash equiv

RTW benefits

Non-monetary gifts

Discounts

Current Incentives

4 Source: “Employer Incentives for Workforce Health and Productivity,” IBI, October 2008

10%

11%

11%

31%

65%

43%

Other

Job sanctions

Salary penalties

Benefits reduction

Copay increase

Premium increase

Current Disincentives

5 Source: “Employer Incentives for Workforce Health and Productivity,” IBI, October 2008

77%

65%

50%

0%

30%

60%

90%

Participation Behavior change Outcomes

Incentive Goals for Employees

6 Source: “Employer Incentives for Workforce Health and Productivity,” IBI, October 2008

How Much?-Per Participant per Year-

21%

29%

18%

8%

24%

6%

19%

28%27%

21%

0%

15%

30%

< $100 $100 to$200

$201 to$300

$301 to$400

$400+

Incentives Disincentives7 Source: “Employer Incentives for Workforce Health and Productivity,” IBI, October 2008

3.6

3.8

3.6

3.2

3.9

4.0

3.1

3.5

3.9

2.9

3.0

1 2 3 4 5

Cash

Co-pay reduced

Flex account

Team prize

Premium

RTW - full salary

Lottery

Cash/gift

RTW - benefits

Non-cash/gift

Discounts

Effectiveness

Incentives Effectiveness

8 Source: “Employer Incentives for Workforce Health and Productivity,” IBI, October 2008

Disincentives Effectiveness

3.9

3.1

3

3.3

3.2

1 2 3 4 5

J ob sanctions

Salary penalty

Reduced benefits

Co-pay increases

Premiumincreases

Effectiveness

9 Source: “Employer Incentives for Workforce Health and Productivity,” IBI, October 2008

Making Improvements-Top 3 change strategies-

72%

47%42%

0%

20%

40%

60%

80%

I mprovecommunications

strategy

Reward differentactivities

I ncrease dollarvalue

10 Source: “Employer Incentives for Workforce Health and Productivity,” IBI, October 2008