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Employers seen raising bar on financial incentives to improve workers' health

Employers seen raising bar on financial incentives to improve workers' health
March 12, 2010

A growing number of employers are tightening their requirements for workers to receive financial incentives for improving health, according to a survey released yesterday by Towers Watson and the National Business Group on Health. The survey says employers are frustrated that too many of their workers are failing to change their unhealthy habits and take advantage of health and wellness programs that include financial incentives. “As employers continue to be more health-focused, they are beginning to target and reward those workers who demonstrate a real commitment to making positive lifestyle changes,” says Ted Nussbaum, a senior consultant at Towers Watson. The survey says 53% of large employers offer financial incentives to workers who enroll in wellness activities, such as weight management or smoking cessation programs. But 37% of employers reward only those workers who meet the company’s requirements for completing the activity. Motivating employees to improve their health has been a “'major obstacle for many companies,” the survey says. Still, most companies have no plans to abandon their health promotion programs and will continue their existing strategies. The survey, which involved 507 employers with at least 1,000 employees each, was conducted between November and January.