How HR Leaders Can Leverage Wellness Rewards

Did you know the global corporate wellness market is set to hit an astonishing $146 billion by 2033? That’s not just a number—it’s a sign that businesses everywhere are recognizing the transformative power of employee wellness. But here’s the real question: how can your organization tap into this potential to boost morale, productivity, and engagement?

Wellness rewards might just be the game-changer you need. From cash incentives to fitness challenges, these programs go beyond surface-level perks. They create lasting impact by prioritizing employee wellbeing and fostering a workplace culture that thrives. Whether it’s offering extra vacation days or celebrating small wins with public kudos, wellness rewards make your team feel valued and motivated.

Ready to unlock the potential of wellness rewards? Explore innovative program types, compliance essentials, and actionable strategies to build a program that’s as unique as your team. It’s time to turn good intentions into real results and elevate your workplace to new heights.

What Are Wellness Rewards? 

Wellness rewards are incentives or benefits offered by organizations to encourage to participate in wellness programs or adopt healthier habits that benefit their wellbeing — you can think of them as little high-fives from your company.

What does that look like? They generally fall into one of these three categories:

• Monetary Incentives: Cash bonuses, gift cards, or lower health insurance premiums—because who wouldn’t love a little extra financial boost
• Non-Monetary Perks: Extra vacation days, wellness gadgets like fitness trackers, or free access to gyms and yoga studios. Wellness has never been so fun!
• Shoutout-Worthy Recognition: Celebrate employee achievements with public kudos that make them feel like the rockstars they are.

The best part? Wellness rewards don’t just help employees feel their best — they spark a culture of health and positivity that radiates throughout your organization. Healthier habits mean lower healthcare costs, higher morale, and a productivity powerhouse. It’s a win-win that keeps everyone thriving.

Types of Wellness Rewards Programs

There's no one-size-fits-all for workplace wellness programs. Every office has its own unique culture, so the incentives that drive one won't necessarily work on another. 

Team leaders and human resources officers interested in developing a wellness program can only do so with an eye toward their office's particular characteristics. A thorough understanding of the options you have on the table for implementing employee wellness rewards programs can help make the best decision for your workplace. 

Outcome-based Programs

Outcome-based wellness programs celebrate one thing: results. Picture this — your team rallies behind a shared goal, like hitting a weekly productivity milestone or surpassing a collective step count challenge. If they succeed? They earn a well-deserved reward, such as bonus pay, extra time off, or a coveted office perk.

These programs can spark fierce motivation, especially with competitive teams. They thrive on measurable achievements, so everyone knows who's excelling and how close they are to reaching the goal. The clarity and competitive spirit baked into outcome-based programs makes them incredibly effective at driving participation and boosting results.

Activity-based Programs

Activity-based programs are all about getting your team moving — literally and figuratively. By offering activities like lunchtime walks, fitness workshops, or mindfulness sessions, you’re giving employees a menu of wellness options that cater to diverse interests. The goal? To inspire participation in ways that feel natural and enjoyable for each person.

Success here hinges on knowing your employees. Not everyone’s a yoga enthusiast, and that’s okay! What’s important is finding the activities that resonate with your team and delivering them in a way that sparks engagement. A tailored approach makes all the difference — because when employees see options that truly excite them, they’re more likely to jump in.

Points-based Programs

Points-based programs dish out points like a currency to motivate your employees to act. You deal them out for anything you want to prioritize, whether attending a health seminar, getting a biometric screening, or joining a workout class. These points can then be redeemed for rewards, giving participants the freedom to choose what motivates them most.

And the superpower of points-based systems is their versatility. They’re easy to track with today’s wellness apps and adaptable to various employee interests. The catch? Managing these programs requires just a bit of finesse. To keep things running smoothly, streamline your approach by using clear guidelines and technology that simplifies tracking and feedback.

Whether you lean into outcome-based, activity-based, or points-based strategies — or even blend them together — the key is to design programs that align with your workforce's unique needs and culture. When employees feel seen, supported, and rewarded, wellness initiatives stop being a checkbox and start becoming a cornerstone of workplace satisfaction and productivity.

Relevant Regulations 

As you design and implement your wellness rewards program, it’s essential to keep regulatory guidelines top of mind. These rules not only safeguard against discrimination but also protect your employees’ privacy and your organization from potential legal risks. Here's what you need to know:

• HIPAA (Health Insurance Portability and Accountability Act): HIPAA ensures that employees are protected from discrimination related to their health status and guarantees the confidentiality of their health information. For your wellness program, this means any health data you collect must be securely handled and stored.
• ADA (Americans with Disabilities Act): The ADA guarantees that employees with disabilities can fully access and participate in your wellness initiatives. To meet these requirements, design an inclusive program that offers equal opportunities for all employees, regardless of their abilities.
• GINA (Genetic Information Nondiscrimination Act): GINA prevents discrimination based on an employee's genetic information. Similar to HIPAA, it’s crucial to keep any genetic data collected as part of your program strictly confidential and use it only as intended.
• EEOC (Equal Employment Opportunity Commission) Guidelines: These guidelines emphasize creating programs that are fair and accessible to all employees, regardless of age, race, gender, or other characteristics. By adhering to EEOC standards, you can ensure your wellness program is equitable and inclusive.
• State Laws: Don’t forget to review and comply with any additional state-specific regulations that apply to wellness rewards programs. These can vary and might include further employee protections.

By aligning your wellness rewards program with these regulations, you’re not just protecting your organization — you’re creating a safe, inclusive space where every employee can thrive.

Benefits of Wellness Rewards Programs

To improve company culture and elevate the entire workplace, your wellness rewards need to deliver value across the board — for both employers and employees. 

The good news? When done right, wellness rewards offer a win-win scenario for everyone involved.

For Employers

Reducing healthcare costs is a headline perk of wellness rewards, but that’s just the beginning. Research suggests that the right wellness rewards can lead to a variety of positive outcomes for your workplace, such as:

• A Healthier Workforce: Healthier employees mean fewer sick days and improved productivity, creating a more resilient and effective team.
• Stronger Employee Retention: When employees feel their wellbeing is valued, job satisfaction increases. This can reduce turnover and save on the costs associated with hiring and training new talent.
• Attracting Top Talent: Wellness rewards can lead to a superior workplace culture, helping you stand out to diverse, skilled candidates who value companies that prioritize wellbeing.

For Employees

A workplace culture that prioritizes wellbeing can be a game-changer for employees. When management places a renewed focus on health and wellness, the benefits go far beyond personal health. Employees thrive personally and professionally, bringing new energy and focus to their work. 

Here’s how tailored rewards can help your wellness programs create a lasting impact:

• A more developed sense of community. Wellness rewards can bring employees together in meaningful ways, fostering connections and strengthening teamwork. Whether it’s a lunchtime walking group or a team-based challenge, these initiatives encourage collaboration and mutual support.
• Greater engagement in the workplace. Employees who feel supported in their own wellness goals are more likely to stay engaged with their tasks and their teams. Meaningful wellness rewards can enhance relationships between co-workers while also improving focus and productivity.
• An outlet for stress. Life can be stressful, but you can leverage wellness rewards to provide a healthy way for employees to recharge. Activities like yoga, mindfulness sessions, or fitness classes offer an opportunity to let off steam and return to work refreshed and ready to tackle new challenges.

Designing an Effective Wellness Rewards Program (Step-by-Step)

Wellness rewards are not a one-size-fits-all solution—it’s personal, intentional, and built with your unique team in mind. 

Ready to build a program that unlocks the magic of wellness in your office? Let’s dive into these nine actionable steps to create a program that inspires!

Step 1: Clarify Your Objectives

Before you start brainstorming, get crystal clear on your goals. Are you aiming to reduce healthcare costs, boost morale, or improve employee retention? With specific and measurable objectives guiding your efforts, your wellness rewards can hit all the right marks.

Step 2: Know Your Audience

The heart of your program lies in understanding your team’s needs. Use surveys or one-on-one conversations to uncover what they truly value. Do they crave mental and emotional wellbeing support, fitness challenges, or more flexible time off? Your team’s feedback is your North Star.

Step 3: Get Creative with Incentives (Within Budget!)

Now that you know what makes your team tick, tailor your rewards. From extra vacation days to restaurant gift cards or a flexible points system, design options that motivate without busting your budget.

Step 4: Stay Compliant

Navigating the legal landscape is crucial. Review regulations like HIPAA, ADA, and GINA to ensure your program not only supports your employees but also protects your company. Compliance is a must-have, not a nice-to-have.

Step 5: Spread the Word

Roll out your program with flair! Choose communication channels that resonate with your team—think fun videos, compelling email campaigns, or vibrant posters in shared spaces. Make it impossible to ignore!

Step 6: Leverage Technology

Technology can be your biggest ally. Use apps to track participation, wearables for fitness challenges, or feedback platforms to gather insights. A tech-driven program is a well-oiled machine.

Step 7: Track Your Success

Decide on key performance indicators (KPIs) to measure impact. Participation rates, health improvements, and employee satisfaction are great starting points. Monitor these metrics to gauge ROI and refine as needed.

Step 8: Analyze and Share Insights

Don’t let valuable data gather dust. Regularly analyze program performance and share findings with stakeholders. Use this feedback to tweak and elevate your rewards strategy.

Step 9: Sidestep Pitfalls

Challenges will arise—but they’re just stepping stones to success. Low engagement? Adjust incentives. Legal uncertainties? Double-check compliance. Confused employees? Simplify your messaging. A little preparation goes a long way.

Energize Your Workplace with Wellness Rewards

Wellness rewards programs can transform your workplace by encouraging healthier habits and fostering a culture of positivity. They address common challenges like low morale, high healthcare costs, and disengagement by offering incentives employees genuinely value.

A comprehensive wellbeing program can take this to the next level. It tailors solutions to your workforce, such as gym memberships, mindfulness sessions, and personalized incentives. Organizations with effective wellness programs report productivity increases 99% of the time and up to 35% reductions in healthcare costs​.

Speak with a Wellhub Wellbeing Specialist today to design a wellness program that empowers your employees and drives meaningful results!

You May Also Like:

• A Guide to Wellness Programs for Small Businesses
• Seven Ways to Promote Workplace Wellness
• 22 Employee Gift Ideas to Support Worker Wellness

References

• DOL. (n.d.). Americans with disabilities act.  https://www.dol.gov/general/topic/disability/ada
• Centers for Disease Control and Prevention. (n.d.). Health Insurance Portability and accountability act of 1996 (HIPAA). https://www.cdc.gov/phlp/php/resources/health-insurance-portability-and-accountability-act-of-1996-hipaa.html
• Genetic information nondiscrimination act (GINA). DOL. (n.d.-b). https://www.dol.gov/agencies/ebsa/laws-and-regulations/laws/gina
• Gough, C. (2024, August 19). Global Corporate Wellness Market Size U.S. 2033. Statista. https://www.statista.com/statistics/253331/revenue-of-the-us-employee-wellness-market/
• Jones, D., Molitor, D., & Reif, J. (2019, November). What Do Workplace Wellness Programs Do? Evidence From the Illinois Workplace Wellness Study. The Quarterly Journal of Economics. https://pmc.ncbi.nlm.nih.gov/articles/PMC6756192/
• Marenus, M. W., Marzec, M., & Chen, W. (2022, September 28). Association of Workplace Culture of Health and Employee Emotional Wellbeing. International Journal of Environmental Research and Public Health. https://pmc.ncbi.nlm.nih.gov/articles/PMC9564377/