February 4th, 2015

“TO EACH HIS OWN” — NEW RESEARCH ON REWARDS, INCENTIVES AND MOTIVATORS

Overview:

• Wellness Program Objectives

• Rewards and Incentives

• Wellness Behaviors Study

• Conclusion

PART 1: Wellness Programs’ Aim and Reach

Wellness Program Goals62% of employers offer wellness programs not to control costs, but to improve workplace productivity

62%

HERO survey of 500+ business leaders

Participation and Engagement• Average participation rates

10% - 30%

• Some great programs achieving around 45%

• Studies in the International Journal of Nutrition and Physical Activity show 23% and 33% participation

Participation and Engagement

46%* 1/3 of employers reporting less than 20% participation and only 8% reporting 100%

Percentage of employees that complete a HRA or Biometric Exam*

2013 Rand Employee Surveys

Participation and Engagement

* Half of employers show less than 10% participation

Participation in lifestyle management

Participation in fitness programs*

Participation in smoking cessation

Participation in intervention is even lower

21% 14%7%

2013 Rand Employee Surveys

Surprising SpoilersHighly engaged and vocal participants - inspiring the masses or crowding them out?

Technology tools – support or substitute?

PART 2:Rewards and Incentives:The Good, the Bad, and the Litigated

Rewards and Incentives- Final Rules

• DOL, Treasury, HHS Final Rules:

− Rules on incentives apply when an employer ties wellness incentives or rewards to a group health plan

− Usually in the form of a reduced insurance premium, but may involve other components (copays, HSA contributions, discounts, rebates, or a waiver of all or part of a cost-sharing mechanism.)

Financial Incentives in the News

• EEOC v. Flambeau Inc.

• EEOC v. Honeywell International Inc.

• EEOC v. Orion Energy Systems.

Long Term Change, or Short Term Action?“Increasing participation in a particular activity can be done with incentives, but you can’t buy commitment to health,” says Alexander Domaszewicz, a principal and senior consultant with Mercer.– Benefitnews.com, Dec. 15, 2014

Non-Health-Funding Incentives

• Competitions, challenges, social networking

• Gift cards, raffles, other forms of cash

− taxable

− less likely to incite litigation

− not necessarily health-oriented

PART 3:Spafinder Wellness, Inc. Consumer Insights 2014

Methodology

• Randomized subset of our 7MM customers

• 1,080 respondents

− 99,115 surveys sent

− 1.1% response rate with no incentives

• Conducted June 16 – June 30, 2014

Objective

• Identify greatest obstacles to productivity

• Determine employee perspective on wellness

− impact on life, health, mood

− “gifted” or “employer funded” wellness

• Assess the impact of “variety” on subsequent behavior

• Understand how wellness treatments are currently used for common conditions

Survey Questions

• Business travel

• Wellness travel

• Obstacles to productivity

• Wellness activities

• Consistency, curiosity, overall goals

FINDINGSSpafinder Wellness, Inc. Consumer Insights, 2014

Key Findings

• Stress and fatigue are greatest obstacles

• Wellness treatments are commonly used

• New begets new

• Variety inspires

• Cost is an obstacle to long term behavior

Obstacles to productivity

Series1

0 0.1 0.2 0.3 0.4 0.5 0.6

55%

52%

47%

45%

36%

29%

23%

21%

Management does not understand their workload

and/or stress levels

Family stress/anxiety

Whereas nearly one-third indicate: financial concerns

Poor sleep/not enough sleep

Not enough time in the day to accomplish their work

Job stress/anxiety

Fatigue/tiredness

Recurring aches pains, or medical ailments

Positive Impact

Series1

0 0.1 0.2 0.3 0.4 0.5 0.6 0.7 0.8 0.9 1

95%

76%

75%

69%

35%

34%

16%

Respondents who travel for wellness or healthy activities

Helped individuals begin a healthier lifestyle

Lost weight or became more fit

Felt more rested

Reduced stress/anxiety

More positive mood, motivations, etc.

Felt it impacted their life in a positive way

Reduced aches/pains

Inspiration

93% trying new wellness or fitness activities inspires them to try other new and different activities

70% of those who did not continue cited financial reasons

94% trying new fitness and wellness activities helps them to reach their overall health goals

InspirationPercent after a paid fitness, spa or wellness activity or class

28%

64%

Repeated the activity

Continued on a regular basis

70% of those who did not continue cited financial reasons

How we handle stress

• Meditation/Mindfulness (92%)

• Massage/Spa (91%)

• Cardio (90%)

• Yoga (90%)

• Boxing/Kickboxing (87%)

• Cross-training (85%)

• Pilates (83%)

Spafinder Wellness 365 Consumer Insight Survey, June 2014

How we treat HBP

• Cardio (33%)

• Yoga (31%)

• Meditation/mindfulness (33%)

• Cross Training (29%)

• Pilates (27%)

• Massage/spa (24%)

Spafinder Wellness 365 Consumer Insight Survey, June 2014

How we treat illness

• Chronic or Ongoing Illnesses (Diabetes, Circulatory Disorders, Cancer, Stomach/Intestinal Distress: )

− Yoga (25%)

− Mindfulness/Meditation (24%)

− Massage/Spa (23%)

− Pilates (21%)

− Cardio (17%)

− Cross training (16%)

Spafinder Wellness 365 Consumer Insight Survey, June 2014

WellnessEvidence.com

• Evidence-based medical databases 

• 1,000s of peer reviewed studies evaluating efficacy

• 25 of the most common wellness approaches 

• Easy to search

• Employer objective: PRODUCTIVITY

• Employee concern: STRESS/FATIGUE

• Participation rates need improvement

• Financial incentives have risks, half-life

• Wellbeing activities treat stress, engage employees

• Variety engages and motivates

Conclusion

THANK YOUClaudia RimermanSenior Vice PresidentCorporate & Group Wellness

 Spafinder Wellness, Inc.257 Park Ave. South, Floor 10New York, NY 10010 T: 212-716-1203   C: 203-213-7115Claudia.Rimerman@spafinder.com ••••••••••••••••••••••• Inspiring Wellness 365 Days of the Year