Everybody Has A Price

Incentives Are Crucial To Driving Up Participation Rates

Health promotion programs are only as good as the number of people who participate in them. And, if you want to have a great health promotion program, you better warm up to the idea of utilizing incentives.

But inquiring minds want to know how sexy the incentive needs to be to get good participation rates. Here’s a quick overview.

In essence, there are three general categories of incentives. And, with each category, the participation rate can vary dramatically.

1. Trinkets and T-Shirts. This level of incentive is the most popular–most likely because there is really very little thought and effort that has to go into the process. This category includes things like water bottles, pedometers, t-shirts, etc. The cost of the incentive is usually very minimal–maybe $1 to $5. And the participation rates they generate are generally in the neighborhood of 10-15%. You may get a higher participation rate in the first year, but that will inevitably fall off as the novelty will dissipate rapidly.

2. Cash and Merchandise. The second level of incentives includes cash and merchandise. When you offer these items as incentives, participation rates begin to climb rapidly. In fact, two movie tickets or a $25 tax-advantaged incentive can get you participation rates in the 40-45% range. Sure, the cost is more substantial, but when you are looking at 40% participation rates, it’s well worth it.

3. Benefit Plan Incentives. The grand-daddy of all incentives is a premium break on the costs associated with the company’s benefit plan. Here’s the way this can work. First, let everyone in the company know that health premium costs are increasing by $250. However, if you participate in the health promotion program, the company will waive the $250 premium hike. If you set up a dynamic like this, you can bank on participation rates in the 80-90% range. And, for those 10% who don’t participate, well they’ll incur the premium hike–and those fees will pay for a big portion of the cost of your program. It’s called a revenue neutral approach.

Bottom line: Incentives are a powerful way to drive up participation rates–and the more thought you put into them, the better off you’ll be.