"It says that compensation establishes the transactional baseline for a job and that awards create a more social and emotional connection which drives behavior.
It also tells me that the process – how you give the award – is critical in how the employee assigns value. If you just dump it in with their pay – you stay on the transactional side of the equation and get nothing for the effort. If you separate it out and provide a “moment” where you recognize and reward – with something other than “pay” – you get a much different – and much more effective result."It's becoming more common for employers to provide premium reductions to employees that meet certain health measures. If employers are expecting these incentives to change behavior, I think they may be disappointed. I actually worry that they’ll be perceived as a penalty and start a rift between fit and unfit staff. If that happens, you could lose any trust and good will you built up with your wellness program. And, then you’ll have little opportunity to really help people make changes that will improve their health. Fran Melmed wrote this thought provoking post, are things going to get ugly? a growing fat stigma.
Some employers, of course, aren't looking at the premium reductions as an incentive. It's logical to charge people that are likely to have high claims more right? We accept this without question when it comes to auto and life insurance. But, what happens to trust and teamwork when these are perceived as fines?