We all have those aspects of our health that we’d like to improve – quit smoking, lose a few pounds, eat more veggies – but should we be penalized for our unhealthy habits? A recent poll, taken by CNNMoney.com, asked how people felt about employers penalizing employees for unhealthy behavior. The results of the poll were mixed. While 31% said yes, companies should penalize their employees for unhealthy behavior, 38% said no, they should reward healthy behaviors instead.  Another 22% said penalties should be reserved only for very unhealthy habits like smoking, and 9% said that employers should never penalize for unhealthy behavior.

The truth of the matter is that unhealthy behaviors cost.  An obese employee alone racks up an extra $1400 per year on healthcare costs, and with 34% of U.S. adults being obese, it adds up to a hefty financial burden for employers. Smoking and other risk factors for disease, like high blood pressure and high cholesterol, also hike up the cost to employers.  While employee health should remain a top priority for employers, the method by which they encourage healthy choices is still up for discussion.

Recently, companies have been monetarily penalizing employees that engage in unhealthy behaviors or do not participate in wellness programs and health screenings. This method may initially be effective in persuading more employees to participate, but fear of punishment for lifestyle choices could create a negative workplace atmosphere.

Offering incentives is an alternative method.  Incentives still encourage certain employee behavior, but in a much more positive way. Programs that aim to reward healthy behaviors have been shown to improve employee morale and increase employee retention, and have been proven to be effective in reducing healthcare costs to employers, even over the long term. This means that employees who participate in incentive programs are more likely to continue their healthy behaviors, even after the program ends.

Post a comment and let us know what you think about penalizing employees for unhealthy behavior.  Is it effective?  Are incentives a better alternative?  We want to hear both sides of the story!