Human resources can be annoying enough for many workers in American companies. But, what happens when HR wants you to lose weight as well as fill our your 401k form on time? Do you tell them to butt out, or do you get on board and make a few extra bucks while losing a few extra pounds. Thanks to ever more popular corporate incentive programs for employee weight loss, we are starting to find out.
This is not some new fad, more like an increasing trend happening in corporate America. For years many companies have come to the realization that healthier employees are happier…and cheaper to get health insurance for. You didn’t think the only reason a company like IBM offers programs like this is to help you get into that size 6 for your 20th high school reunion. Nope, corporate America knows that less obese people that are on the books, the less they will have to shell out for health insurance benefits every year. Obese Americans spend roughly 42% more than healthy weight individuals on health care per year. Insurance companies know this, and so do your employers. They also know that less obesity means less sick time and other health related down time of their work force. So, while they may spin it as corporate responsibility, and honestly, many companies do have you best interest in mind, the almight dollar still plays a very significant role in these programs.
The biggest question is do they work? Particularly, does financial incentive help corporate citizens drop weight any better than who don’t get the dollar bill dangled in front of them on the treadmill? Sadly, so far the answer appears to be a rather depressing no. Cornell University researchers studied seven employer backed financial reward weight loss programs and the results were far from positive. Their research concluded that the average weight loss by individuals in these programs was just a smidge over 1 lbs. That is right, 1 pound. Considering that 34% of American adults aren’t just over weight, but obese, you can imagine that 1 lb is not going to cause too many ripples.
But all is not lost with the idea of an incentive type plan to help folks lose weight. Some companies are banking on individuals desire to not lose their own money versus rewarding them with bonuses. People tend to be more motivated by the risk of losing something they already have vs. gaining something via a contest or reward. In that Cornell study, one of the companies used a refundable bond option for employees. They would deposit money with the program and would get to keep it all if they hit their goals and stayed with the program. If they dropped out, they woudl forefit their deposit? People in this company averaged 4 lbs lost, nearly four times more than the other programs that worked on an incentive only basis. Perhaps the next diet trend will be the tough finanical love diet?
What is the right model and do employers belong in this game to begin with? Tough questions, but judging by the adoption rates of health and weight loss programs in corporate America, we are on our way to finding out.