Wellness Incentives for Employees: Types, Benefits and Ideas
Even if you have wellness programs in place, you might struggle with engagement or lack motivation from employees to participate. In this case, wellness incentives can make a huge difference.
These incentives act as powerful motivators, encouraging employees to prioritise their health and wellbeing. Whether it’s financial rewards, additional time off, or recognition-based incentives, the right approach can create a culture of wellness within an organisation.
This guide explores everything you need to know about wellness incentives, benefits, real-world wellness programs for employees examples, and data-backed insights on their effectiveness.
What Are Wellness Incentives?
Wellness incentives are rewards, perks, or recognition programs designed to encourage employees to participate in workplace wellness initiatives. These incentives serve as external motivators that help employees adopt and maintain healthy behaviours, such as regular exercise, stress management, healthy eating, and preventive healthcare.
Employers can structure wellness incentives in various ways, including financial rewards, time-off benefits, discounts on health-related services, or even public recognition for wellness achievements.
For example, an organisation may offer:
- Cash rewards for completing a biometric screening
- Extra paid time off for participating in a company-wide fitness challenge
- Gym membership reimbursements for employees who exercise regularly
- Healthy meal vouchers for those who attend a nutrition workshop
When designed effectively, wellness incentives can drive higher engagement, improved employee satisfaction, and better health outcomes, ultimately benefiting both employees and employers.
Suggested read: What is PERMA Model of Wellbeing?
Why Are Wellness Incentives Important?
Here are some factors why you should consider investing in wellness incentives in the workplace.
1. Improves Employee Participation and Engagement
A wellness incentive serves as a powerful motivator, increasing employee participation in workplace wellness programs. Without incentives, participation rates in wellness initiatives remain below 30%, but when financial rewards are introduced, engagement can rise to 70% or higher (source: RAND Corporation).
Example: Aetna saw a 50% increase in wellness program participation after offering employees up to $600 in financial incentives for completing health assessments and participating in wellness activities.
2. Enhances Talent Acquisition and Retention
A strong wellness program that includes incentives can serve as a competitive advantage in attracting and retaining top talent. According to a 2023 SHRM survey, more than 60% of employees consider wellness programs a deciding factor when choosing an employer.
Example: Johnson & Johnson estimates that for every $1 invested in wellness programs, the company saves $2.71 in healthcare costs, while also improving employee retention.
3. Encourages Long-Term Healthy Habits
Developing a healthy habit takes time, and external motivation often plays a crucial role. A structured wellness incentive program can encourage employees to adopt and sustain healthier lifestyles by rewarding consistent participation.
Data Point: A Harvard Business Review study found that employees who receive continuous incentives for fitness-related activities were twice as likely to maintain a regular exercise routine compared to those without incentives.
4. Builds a Culture of wellbeing
A company that actively promotes wellness fosters a positive and productive workplace culture. When employees feel that their health is valued, they report higher job satisfaction and lower stress levels.
Example: Salesforce introduced paid wellness days as an incentive, resulting in a 22% decrease in employee stress levels and a 30% increase in overall job satisfaction.
Benefits of Corporate Wellness Programs: Statistics & Insights
Key Data Points on the Impact of Wellness Programs
- 61% of employees say wellness programs make them more productive at work (American Psychological Association).
- Healthcare costs are reduced by 25% in companies with strong wellness programs for employees benefits in HRM (Harvard Business Review).
- 80% of employees in companies with wellness incentives report higher job satisfaction (Gallup).
- For every $1 invested in a wellness program, companies see a $3 return in reduced absenteeism and increased productivity (U.S. Chamber of Commerce).
- Companies with the best employee wellness programs report 32% fewer sick days than those without a structured wellness initiative.
Types of Wellness Incentives for Employees
1. Monetary Incentives
These financial rewards drive the highest engagement.
- Cash bonuses for meeting fitness goals
- Health insurance discounts for preventive check-ups
- HSA contributions for participating in wellness activities
2. Experiential Incentives
Instead of cash, companies offer wellbeing-related experiences.
- Wellness retreats
- Gym membership reimbursements
- Extra paid time off for participating in wellness programs
3. Progress-Based Incentives
Rewards employees based on progress toward wellness goals.
- Smartwatches for consistent participation
- Fitness challenge rewards (e.g., 10,000 steps a day for 30 days)
4. Participation-Based Incentives
Encourage involvement in wellness initiatives.
- Recognition badges and certificates
- Company-wide celebrations for wellness challenge participants
5. Performance-Based Incentives
Reward employees who excel in wellness initiatives.
- "Wellness Champion" Awards
- Team wellness incentives for collective health goals
15 Creative Wellness Incentive Ideas Employers Must Try in 2025
Employee wellness is no longer just a perk—it’s a necessity. Organisations that implement wellness incentives for employees see increased engagement, improved job satisfaction, and lower healthcare costs. However, choosing the right health and wellness incentives can be a challenge.
This list provides 15 creative wellness incentive ideas that businesses can use to promote a culture of employee wellbeing, encourage participation in wellness programs for employees, and boost workplace morale.
Monetary Incentives
Financial rewards are one of the most effective wellness incentives because they offer employees direct value.
1. Step Challenge Cash Rewards
Reward employees who complete a daily step challenge with cash bonuses. For instance, offer $25 for 50,000 steps per week or $100 for completing 200,000 steps in a month.
2. Wellness Expense Reimbursement
Allow employees to submit receipts for health-related expenses, such as gym memberships, wellness classes, or fitness equipment, and get reimbursed up to a certain amount each year.
3. Discounts on Health Insurance Premiums
Offer reduced health insurance premiums for employees who participate in wellness challenges, complete preventive health screenings, or maintain an active lifestyle.
4. Contributions to Health Savings Accounts (HSAs)
Employees who reach wellness milestones (such as completing 30 workouts in a month), contribute a bonus to their HSA or Flexible Spending Account (FSA).
Experiential Incentives
Experiences can be more memorable and fulfilling than monetary rewards, making them great wellness incentives for employees.
5. Extra Paid Time Off for Wellness
Give employees an extra day off as a reward for actively participating in wellness programs for employees' benefits.
6. Wellness Retreats and Spa Vouchers
Offer top-performing employees a wellness retreat package or a spa day for relaxation and stress relief.
7. Premium Fitness App Subscriptions
Provide free annual subscriptions to popular fitness apps like MyFitnessPal, Peloton, or Headspace for employees who reach wellness goals.
8. Personalised Wellness Kits
Send employees a wellness care package with self-care products such as:
- Herbal teas
- Aromatherapy oils
- Sleep masks
- Resistance bands
- Yoga mats
Progress-Based Incentives
Rewards based on progress rather than final results ensure that employees stay motivated throughout wellness programs for employee benefits examples.
9. Personalised Wellness Passport
Create a system where employees earn points or stamps for hitting wellness goals (e.g., drinking 2 litres of water daily, logging workouts, or attending mental health sessions). Once their passport is filled, they can redeem rewards like fitness gear or healthy meal vouchers.
10. Choose Your Own Health Box
Employees who reach specific milestones (like completing 50 wellness activities) get to select items for a personalised health box, which may include:
- Protein bars
- Smart water bottles
- Recovery tools (massage balls, foam rollers)
- Vitamin and supplement packs
Participation-Based Incentives
Encourage employees to actively engage in wellness programs by offering non-monetary rewards that boost motivation and morale.
11. Digital Wellness Leaderboard Recognition
Feature the top wellness participants in a company-wide leaderboard and offer a reward to the top 10 every quarter.
12. Social Media and Internal Newsletter Shoutouts
Celebrate employees who consistently participate in wellness activities by featuring them on the company’s LinkedIn, Slack, or internal newsletter.
13. Monthly Wellness Raffle
Employees who log their wellness activities into the company’s wellness platform can enter a monthly raffle for prizes like:
- Wireless earbuds
- Gift cards for health brands
- Free fitness classes
Performance-Based Incentives
Recognising employees who go above and beyond in corporate wellness programs helps build a culture of wellbeing.
14. Corporate Wellness Champion Award
Recognise employees who inspire others by consistently achieving wellness milestones with a "Wellness Champion Award" that includes a plaque, trophy, or cash prize.
15. Team-Based Wellness Challenge Prizes
Encourage teams to compete in collective wellness activities, such as logging the most workouts or participating in a company-wide step challenge. The winning team gets:
- A healthy catered lunch
- A team-building wellness retreat
- A company-paid activity like yoga or rock climbing
How CHOYS Simplifies Wellness Incentives for Employers
Implementing a successful wellness incentive program can be challenging without the right tools. This is where CHOYS comes in. CHOYS offers a seamless way for employers to motivate employees to take care of their wellbeing through a reward-based system. Employees earn coins for engaging in healthy activities such as walking, tracking habits, and completing wellness challenges.
These coins can then be redeemed for gift cards from their favourite brands, making wellness incentives both engaging and meaningful. By using CHOYS, companies can automate wellness tracking, boost participation rates, and provide employees with real, tangible rewards that encourage long-term healthy habits. With CHOYS, businesses can create a culture of wellbeing that enhances employee satisfaction, productivity, and overall workplace morale.
Frequently Asked Questions (FAQs)
1. What is the best wellness incentive?
Financial incentives like cash rewards and insurance discounts are the most effective, but experiential incentives like paid wellness retreats are also impactful.
2. How much should companies invest in wellness incentives?
Companies typically spend $150-$500 per employee per year, depending on program size and goals.
3. Can small businesses implement wellness incentives?
Yes. Affordable options include extra time off, recognition programs, and gym reimbursements.
4. What are some low-cost wellness incentives for employees?
Companies can offer flexible work schedules, free wellness workshops, employee recognition programs, and workplace walking challenges as cost-effective wellness incentives.
5. How do wellness incentives impact employee productivity?
Studies show that companies with wellness programs for corporates see a 25% increase in productivity and reduced absenteeism by up to 40% (American Psychological Association).
6. Are wellness incentives taxable?
In many cases, cash-based wellness incentives are considered taxable income. However, non-monetary incentives such as gym memberships and wellness workshops may not be taxable. Employers should consult tax professionals to determine the tax implications of their wellness incentives.
7. What types of businesses benefit the most from wellness incentives?
Any business can benefit, but industries with high-stress environments, sedentary work conditions, or physically demanding jobs tend to see the most significant positive impact.
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