Companies Finance Fitness

Incentives: Two new reports indicate a growing trend among U.S. employers: awarding financial incentives to employees that participate in health and wellness programs. From 2007 to 2008, the number of companies offering small stipends to health-conscious workers increased from 62 percent to 71 percent, according to a joint report by labor group ERISA Industry Council, the National Association of Manufacturers and wellness firm IncentOne Inc. The report includes responses from 225 major U.S. companies that cumulatively employ nearly 8 million people. It says companies are offering financial incentives designed to promote healthier lifestyles among employees, including weight loss and quitting smoking. On average, the value of such incentives was about $192 per employee. Participating companies reportedly expect their investments to pay off, with 83 percent expecting returns of “better than break even.”

Those conclusions buttress findings in a similar report by Watson Wyatt Worldwide. The Washington, D.C.-based consulting firm surveyed more than 450 large companies in conjunction with the nonprofit National Business Group on Health. It found that nearly half already use financial incentives to encourage workers to participate in health improvement initiatives, with nearly three-quarters of companies predicted to do so by 2009.