Can I offer my younger, more fit employees a higher salary since they very rarely utilize their healthcare benefits? This may sound ridiculous, but I had a peer do this with their company.
You need to have a formal program in place that professionally evaluates the health of employees and then you can offer "incentives" based on the results. There are strict guidelines and requirements and you should work with your benefits administrator or broker to understand the regulatory guidelines around this. I have never heard of differentiating by base salary but definitely with "incentives".
Posted anonymously on Aug 12, 2010 - 1 Votes - Flag this post
Interesting that there is an assumption that younger employees are more fit. In my past organization, it was the younger employees who were the majority that smoked or used other tobacco products, which was linked to many other issues.
Posted anonymously on Aug 12, 2010 - 0 Votes - Flag this post
So this idea is workable? I worry about the liability behind it. I suppose the assumption that younger employees are more healthy depends on who the employees actually are.
Posted anonymously on Aug 13, 2010 - 0 Votes - Flag this post
NO, it is not workable to pay someone a higher base salary just because you assume they are healthier. You will have liability and you will probably discriminate based on age, knowingly or unknowingly...YES, you can offer incentives to employees that exhibit or make an effort to a healthier lifestyle through a formal, objective and measurable wellness program. Do some research on wellness programs. Vendors can help you create the appropriate incentives based on the regulatory guidelines.