employer incentives for workforce health & productivity
TRANSCRIPT
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IBI RESEARCH - 20081
IBI Incentives Research
Source: “Employer Incentives for Workforce Health and Productivity,” IBI, October 2008
Employer Incentives for Workforce Health & Productivity
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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
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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
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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
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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
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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
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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
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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
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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
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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