What's Happening?
Many employers are reevaluating their wellbeing incentive programs due to concerns about their effectiveness and cost. Traditional programs, which often include financial incentives, have shown little
evidence of leading to sustained behavior change or decreased medical costs. According to the WTW 2024 Global Benefit Attitudes Survey, these programs are not highly valued by employees, as indicated by a Net Promoter Score of -20. The 2025 WTW Best Practices in Healthcare Survey revealed a decline in the number of employers offering financial incentives, with 48% currently doing so, down from previous years. Some employers are considering modifying or eliminating these programs, fearing employee discontent. Behavioral science is being explored as a method to increase engagement and effectiveness, focusing on communication strategies and aligning programs with employee goals.
Why It's Important?
The shift in employer strategies regarding wellbeing programs is significant as it reflects broader trends in employee engagement and cost management. Employers are under pressure to demonstrate the value of these programs, which are often expensive and administratively complex. The use of behavioral science could potentially modernize these programs, making them more appealing and effective. This transition could impact employee satisfaction and retention, as well as influence the overall health and productivity of the workforce. Employers who successfully implement these changes may gain a competitive edge in attracting and retaining talent, while those who fail to adapt may face increased employee turnover and dissatisfaction.
What's Next?
Employers planning to modify or eliminate wellbeing incentive programs are likely to focus on transparent communication and gradual implementation to minimize employee discontent. They may introduce new benefits or programs to offset the perceived loss of financial incentives. The integration of social elements and personalized wellbeing options could enhance engagement. Employers will need to monitor the impact of these changes on employee satisfaction and health outcomes, adjusting strategies as necessary to ensure the effectiveness of their wellbeing initiatives.
