Jeffrey T Kullgren1, Geoffrey C Williams2, Kenneth Resnicow3, Lawrence C An4, Amy Rothberg4, Kevin G Volpp5, Michele Heisler6. 1. VA Center for Clinical Management Research and Department of Internal Medicine, VA Ann Arbor Healthcare System and University of Michigan, Ann Arbor, MI, USA. 2. Departments of Medicine and Clinical Social Sciences in Psychology, University of Rochester, Rochester, NY, USA. 3. Department of Health Behavior and Health Education, University of Michigan, Ann Arbor, MI, USA. 4. Department of Internal Medicine, University of Michigan, Ann Arbor, MI, USA. 5. Departments of Medicine and Health Care Management, Philadelphia VA Medical Center and University of Pennsylvania, Philadelphia, PA, USA. 6. VA Center for Clinical Management Research and Departments of Internal Medicine and Health Behavior and Health Education, VA Ann Arbor Healthcare System and University of Michigan, Ann Arbor, MI, USA.
Abstract
PURPOSE: To describe how tailoring financial incentives for healthy behaviors to employees' goals, values, and aspirations might improve the efficacy of incentives. DESIGN/METHODOLOGY/APPROACH: We integrate insights from self-determination theory (SDT) with principles from behavioral economics in the design of financial incentives by linking how incentives could help meet an employee's life goals, values, or aspirations. FINDINGS: Tailored financial incentives could be more effective than standard incentives in promoting autonomous motivation necessary to initiate healthy behaviors and sustain them after incentives are removed. RESEARCH IMPLICATIONS: Previous efforts to improve the design of financial incentives have tested different incentive designs that vary the size, schedule, timing, and target of incentives. Our strategy for tailoring incentives builds on strong evidence that difficult behavior changes are more successful when integrated with important life goals and values. We outline necessary research to examine the effectiveness of this approach among at-risk employees. PRACTICAL IMPLICATIONS: Instead of offering simple financial rewards for engaging in healthy behaviors, existing programs could leverage incentives to promote employees' autonomous motivation for sustained health improvements. SOCIAL IMPLICATIONS: Effective application of these concepts could lead to programs more effective at improving health, potentially at lower cost. ORIGINALITY/VALUE: Our approach for the first time integrates key insights from SDT, behavioral economics, and tailoring to turn an extrinsic reward for behavior change into an internalized, self-sustaining motivator for long-term engagement in risk-reducing behaviors.
PURPOSE: To describe how tailoring financial incentives for healthy behaviors to employees' goals, values, and aspirations might improve the efficacy of incentives. DESIGN/METHODOLOGY/APPROACH: We integrate insights from self-determination theory (SDT) with principles from behavioral economics in the design of financial incentives by linking how incentives could help meet an employee's life goals, values, or aspirations. FINDINGS: Tailored financial incentives could be more effective than standard incentives in promoting autonomous motivation necessary to initiate healthy behaviors and sustain them after incentives are removed. RESEARCH IMPLICATIONS: Previous efforts to improve the design of financial incentives have tested different incentive designs that vary the size, schedule, timing, and target of incentives. Our strategy for tailoring incentives builds on strong evidence that difficult behavior changes are more successful when integrated with important life goals and values. We outline necessary research to examine the effectiveness of this approach among at-risk employees. PRACTICAL IMPLICATIONS: Instead of offering simple financial rewards for engaging in healthy behaviors, existing programs could leverage incentives to promote employees' autonomous motivation for sustained health improvements. SOCIAL IMPLICATIONS: Effective application of these concepts could lead to programs more effective at improving health, potentially at lower cost. ORIGINALITY/VALUE: Our approach for the first time integrates key insights from SDT, behavioral economics, and tailoring to turn an extrinsic reward for behavior change into an internalized, self-sustaining motivator for long-term engagement in risk-reducing behaviors.
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