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The Empuls Glossary

Glossary of Human Resources Management and Employee Benefit Terms

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Healthcare rewards are pivotal in fostering a culture of wellness and engagement within organizations. As the importance of employee well-being continues to gain recognition, companies are increasingly turning to healthcare rewards programs to encourage healthy behaviors and improve overall job satisfaction.

In this comprehensive overview, we will explore the various facets of healthcare rewards, including types, popular structures, their impact on employee engagement, productivity, cost savings, challenges, and future trends.

What are healthcare rewards?

Healthcare rewards refer to incentive programs implemented by employers or healthcare providers to encourage individuals to adopt and maintain healthy behaviors. These programs motivate participants to make positive lifestyle choices, engage in preventive healthcare measures, and actively manage their health. 

The overarching goal is to improve overall well-being, reduce healthcare costs, and create a culture of health within organizations. Healthcare rewards can take various forms, including financial incentives, non-monetary perks, and personalized benefits. 

These programs often leverage behavioral economics principles, using rewards to influence individuals' decisions and actions related to their health. The concept recognizes that promoting healthy habits and preventive care can lead to long-term benefits for both individuals and the organizations they work for.

Listen, recognize, award, and retain your employees with our Employee engagement software  

What are the different types of healthcare rewards?

The different types of healthcare rewards are:

  • Financial incentives: Financial rewards, such as cash bonuses or incentives for health-related achievements, provide tangible recognition for employees who actively participate in wellness programs or adopt healthier lifestyles.
  • Non-monetary incentives: Non-monetary rewards encompass various incentives, including gift cards, vouchers, and other perks that contribute to a positive work environment and encourage employees to prioritize their well-being.

What are a few popular reward structures?

The popular reward structures are:

  • Cash rewards: Direct monetary incentives are a straightforward approach, motivating employees through financial gains.
  • Gift cards and vouchers: Allowing employees to choose rewards, such as gift cards or vouchers for fitness classes, promotes individualized wellness.
  • Health insurance premium discounts: Companies may offer discounts on health insurance premiums to employees who actively engage in wellness programs, creating a direct link between healthier behaviors and financial benefits.
  • Wellness program incentives: Tailored wellness programs, often including fitness challenges and health screenings, can be integrated with rewards to promote sustained healthy behaviors.

What is the the role of healthcare rewards in employee engagement?

The role of healthcare rewards in employee engagement are:

  • Enhancing employee morale and satisfaction: Healthcare rewards contribute to a positive workplace culture, boosting morale and job satisfaction by recognizing and valuing employees' efforts toward a healthier lifestyle.
  • Improving employee retention: Organizations that invest in employee well-being through healthcare rewards often experience improved retention rates, as employees feel a greater loyalty to companies that prioritize their health.
  • Fostering a healthy work culture: Healthcare rewards programs establish a foundation for a culture of wellness, encouraging teamwork and mutual support in achieving common health goals.

What is the impact on employee productivity and performance?

The impact on employee productivity and performance are: 

  • Reducing absenteeism: By promoting healthier lifestyles, healthcare rewards can contribute to a reduction in absenteeism, leading to increased productivity and lower healthcare costs.
  • Boosting workplace productivity: Engaged and healthy employees are more likely to be productive, contributing positively to the organization's overall success.
  • Encouraging healthy lifestyle choices: Healthcare rewards incentivize employees to make healthier choices, resulting in long-term benefits for individuals and the organization.

What is the cost savings and ROI in healthcare rewards?

The cost savings and ROI driven by the healthcare rewards are:

  • Prevention vs. treatment: The Economic Perspective: Investing in preventive healthcare through rewards programs can lead to significant cost savings by reducing the need for expensive medical treatments.
  • Calculating Return on Investment (ROI) in healthcare rewards programs: Measuring the effectiveness of healthcare rewards programs requires carefully assessing costs against the tangible benefits, including improved productivity and reduced healthcare expenses.

Employee pulse surveys:

These are short surveys that can be sent frequently to check what your employees think about an issue quickly. The survey comprises fewer questions (not more than 10) to get the information quickly. These can be administered at regular intervals (monthly/weekly/quarterly).

One-on-one meetings:

Having periodic, hour-long meetings for an informal chat with every team member is an excellent way to get a true sense of what’s happening with them. Since it is a safe and private conversation, it helps you get better details about an issue.


eNPS (employee Net Promoter score) is one of the simplest yet effective ways to assess your employee's opinion of your company. It includes one intriguing question that gauges loyalty. An example of eNPS questions include: How likely are you to recommend our company to others? Employees respond to the eNPS survey on a scale of 1-10, where 10 denotes they are ‘highly likely’ to recommend the company and 1 signifies they are ‘highly unlikely’ to recommend it.

Based on the responses, employees can be placed in three different categories:

  • Promoters
    Employees who have responded positively or agreed.
  • Detractors
    Employees who have reacted negatively or disagreed.
  • Passives
    Employees who have stayed neutral with their responses.

What are the challenges and solutions?

The challenges and solutions are:

  • Addressing privacy and data security concerns: As healthcare rewards programs involve personal health data, addressing privacy and data security concerns is crucial to building employee trust.
  • Ensuring inclusivity in reward programs: Developing inclusive reward programs accommodating diverse preferences and needs fosters a supportive and equitable workplace environment.
  • Overcoming resistance to change: Implementing healthcare rewards programs may face employee resistance; effective communication and change management strategies are essential to overcome such challenges.

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