While almost 84% of organizations have workplace wellness programs, there’s a concerning disconnect between these initiatives and actual employee health outcomes. Rising healthcare costs, chronic disease prevalence, and increasing employee burnout and stress are prompting many organizations to rethink their wellness strategies. The big question is why do so many workplace wellness programs fail? Many solutions show promise in the beginning, with high sign-up rates and even higher enthusiasm. However, they fail to deliver long-term engagement, which short circuits meaningful health outcomes. 

One key issue is that well-intentioned “quick-fix” strategies, like financial incentives, may boost participation initially but fail to address the root cause of lasting behavior change. A recent study on what drives long-term engagement (and therefore clinical results) was presented at The Obesity Society Annual Meeting by obesity researchers from Wondr Health, a digital behavioral support and weight-loss management company providing full-spectrum weight and obesity care. The findings might surprise you and inspire a rethink of which initiatives have the most impact on workplace wellness.

Financial incentives: A useful but limited tool

Financial incentives are a popular tool, but do they drive long-term results? The answer is, no — not when used as a stand-alone tactic. Researchers dove into the data from 10 employers using an employer-sponsored weight-loss program who offered financial incentives for class attendance (9,623 total participants) and 63 employers who did not (45,471 total participants). These financial incentives ranged from $5-$170 in the form of wellness points or dollars. Looking at enrollment, class attendance, and weight loss (a key determinant of chronic disease risk), the researchers found that while financial incentives increased sign-ups (4.9% vs. 3.4%) and slightly improved class attendance, they showed no significant impact on mid-program weight loss (3.7% vs. 3.6%). 

So, why don’t financial incentives deliver on their promise? The core issue lies in human behavior: achieving lasting health outcomes isn’t transactional, it’s behavioral. Financial rewards may spark initial interest, but alone they fail to cultivate the intrinsic motivation and habit-building necessary for long-term success.

A better path: Focusing on behavioral change

Initiatives that are extrinsically motivating, such as financial incentives, can be helpful but they’re not something employers should solely rely on. While there is no end-all-be-all tool, there is one extremely foundational component that every wellness strategy should be built upon: Behavioral science. One issue? Not all behavior-change programs are created equal, and it can be difficult to tell what elements will actually drive meaningful, lasting results. 

Wellness program checklist: Driving long-term engagement

What are the engagement “green flags” to look for in a wellness program? Here is a handy checklist to what can improve long-term success and clinical outcomes:

1. A comprehensive approach to wellness – Mental and physical well-being are so well integrated, they must be addressed simultaneously. Ensure that your wellness initiative addresses all the health components that can work in tandem, including stress, sleep, diet, and physical activity.
2. Personalization that improves engagement – Time after time, we’ve found that one-size-fits-all solutions fail to meet the diverse needs of an employee population. People are complicated with a limitless combination of different genetics, schedules, life stages, food preferences, eating habits, physical abilities, cultural influences, medication needs, and more. A program needs to adapt to where a person is to drive results. 
3. Smarter, actionable cues – Learning is doing, and creating habits is no different. Programs that provide actionable cues, such as weigh-in reminders, meal timers to slow down eating, and nudges to reflect on progress, translate knowledge into daily actions. These tools help employees build the skills they need to achieve their long-term health goals.
4. Support through community and experts – A sense of community can be a powerful driver of engagement. Peer networks and group support foster accountability, shared motivation, and a safe space for learning from others’ challenges and successes. Coupled with expert guidance from health coaches or clinical providers, community support ensures participants receive the resources they need to succeed.
5. Reward behavior, not outcomes – How can incentives be more strategic? Tactics such as financial incentives and gamifying points aren’t enough. Rewards should reinforce habits that lead to healthier outcomes. By providing a variety of options, such as a water bottle for better hydration, a yoga mat to support physical activity, or a bento box to reinforce mindful eating, each person can choose the reward that closely aligns with their unique health goals.

Want to drive meaningful health outcomes? Financial incentives alone won’t cut it. By grounding wellness programs in behavior-change science, employers can empower their people to build healthier, more sustainable habits. This approach not only supports employees in achieving long-term health benefits but also enhances the ROI of supplemental efforts like financial incentives.

Photo: Peter Dazeley, Getty Images

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