How Workplace Incentives Help To Improve Employee Health And Wellness

Feb 05,2026

Read Time 2 Minutes

Poor employee health costs United States employers more than $500 billion each year. Around 160 million Americans have employer-sponsored health coverage, which puts employers in a unique position to support better employee health and, as a result, reduce costs. Wellness rewards programs are a proven, cost-effective strategy for employers to do just that.

What Is A Wellness Rewards Program?

 

Wellness rewards programs often use incentives to encourage people to participate in activities that may boost their health and wellness. 

 

Employees may earn rewards for completing activities such as:

  • Annual physicals
  • Flu shots
  • Cholesterol screenings
  • Tracking daily steps or sleep

 

Common incentives include:

  • Gift cards to retail stores
  • Reduced health insurance premiums
  • Additional paid time off
  • Contributions to an employee’s health savings account (HSA)
  • Cash bonuses

 

Why Are Wellness Rewards Programs Important?

 

Studies show that employees who participate in wellness rewards programs are more likely to meet health quality measures such as getting appropriate screenings. Additionally, the same study shows that employees with diabetes are more likely to control their blood pressure and blood sugar. The right programs not only foster healthier behaviors but can also lead to measurable improvements in health outcomes and productivity.

 

Wellness programs encourage employees, especially those at greater health risk, to take proactive steps to improve their health and wellness. Research shows that women and people with lower relative health are more likely to participate in these programs, making them effective in motivating healthier behaviors and potentially improving overall health outcomes. 

 

Employers have a significant influence on employee health, and wellness rewards programs provide an effective strategy to lower health risks, support chronic disease management, and enhance employees’ quality of life.

 

Wellness Rewards Programs Vs. Employee Assistance Programs

 

Wellness rewards programs differ from Employee Assistance Programs (EAPs). EAPs are employee benefits that offer resources like confidential counseling to help employees navigate personal, family, and work challenges. While they serve very different purposes for employees, both wellness rewards programs and EAPs are critical components of a fully supportive whole-health benefits plan.

 

How To Get Started

 

As the new year begins, and with it, the possibility of a new health plan, this is an ideal opportunity to remind your employees about the benefits of your company’s wellness rewards program. Employees are often unaware of these rewards or unsure of how to begin participating. Most payors share details about their wellness programs online. Consider posting an announcement on your internal website or sending out an email highlighting available incentives to help employees take advantage of these valuable opportunities. You can also consult a trusted partner like Anthem to walk you through your existing wellness rewards program, or how to set one up for your company.

 

Wellness rewards programs provide incentives for employees to participate in important health- and wellness-related activities, serving as the extra motivation they may need to start their whole-health journey. In turn, you gain confidence knowing your team is taking proactive steps to protect their greatest asset — their health.