Our Human Resources Blog

Traditionally, many companies use bonuses and paid time off to reward employees for good work and behavior. Recently though some companies are taking it a step further by offering cash rewards to employees for actions such as quitting smoking, taking their blood medication and flying coach on business trips.

With skyrocketing expenses in today's economy, many employers are finding that offering certain cash rewards not only benefit the employee but can also lower expenses and make good financial sense for the company.

Some examples of employers "paying" employees for good behavior include:

• Energizer Battery company was looking for ways to cut travel costs. The solution they found was to pay employees to fly coach instead of business class on international flights.  The cost savings are shared- $1000 is given to the employee, the company keeps $1000.
• General Electric offers a series of cash incentives to employees for quitting smoking:  $100 for completing a smoking cessation program; $250 for demonstrating being "cigarette free" after 6 months; $400 for remaining "cigarette free" for the following 6 months; A bonus of $400 for those who quit in the first 6 months
• Others are paying employees between $10 and $100 to take their blood pressure medicine every day.  When employees are admitted into the hospital as a result of not taking their medication, it costs insurers hundreds of millions of dollars in hospital bills.  A cash incentive can save money for both insurers and subsequently individual companies in health care costs.

Whether it's a shared savings program or a program that lowers health care costs, it's important that businesses offer incentive programs that not only motivate their employees, but also help themselves to achieve their business goals. The program has to work not only for the employees, but for the good of the company, too.