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Employee Benefits Adoption: Why New Programs Stall at Launch, and How Staged Incentives Fix It
The short version: New employee benefits start with no habit to build on, so announcements alone rarely move employees, even during open enrollment. An Austin-based fintech company with 2,500+ employees worldwide, a newly launched Medefy client, staged prize drawings across several months, including one at its benefits fair. Nearly 1 in 5 employees adopted the Member app within days of rollout. This post covers why launches stall, what the company ran, how to run the same play, and when it fits.
Prefer to watch? See how the incentive plan worked.
Key takeaways
Why a new launch has no habit to lean on
An established program has a baseline. Some employees already know where to log in, and each enrollment season reminds them. A newly launched program has none of that. Every employee starts at zero, and the first use has to compete with everything else on their plate.
That changes the job. The goal is not to explain the program better. The goal is to give employees a specific reason to take the first step, soon, and a reason to come back.
What the fintech company ran
The company launched with Medefy for a workforce of more than 2,500 employees across the world. Instead of one announcement and one deadline, it paired the launch with prize drawings and spread them out.
- Drawings tied to the launch, so the first step had a reason attached.
- Drawings staged over several months, so interest did not end after week one.
- One drawing held at the benefits fair, so a live event carried a reason to act.
Within days of rollout, nearly 1 in 5 employees had already adopted the Member app.
Run it yourself
- Stage the incentive across your enrollment window. One large prize at launch builds a spike and then a gap. Smaller drawings spread over the window keep a reason to act in front of employees for longer. If you're also heading into open enrollment 2026, pair this with a required first step.
- Tie one moment to a live event. A benefits fair, a town hall or an onsite session gives employees a place to act together. Attach a drawing to it so attendance and adoption move at the same time.
- Treat the incentive as a nudge, not the whole strategy. The drawing gets the first step. Clear instructions, a simple first action and follow-up carry employees past it.
Where this play fits
Set expectations by your starting point. This result came from a newly launched program, and part of that lift reflects moving from zero. A program with an existing baseline should expect a smaller increase. Check eligibility and tax rules for any prize drawing with your legal and HR teams before you announce it. For a workforce that rarely opens email, add the paycheck stuffer and QR code play.
A note for benefits consultants
Your clients choose a plan in the fall, and the real question comes after: will employees use what they chose? A staged incentive gives you a concrete answer to bring to a client conversation. It is specific, it is tied to dates the client already owns, and it does not require rebuilding the benefits program.
Frequently asked questions
Do prize drawings work for employee benefits adoption?
In this launch, they sat alongside nearly 1 in 5 employees adopting within days. Results will vary with your starting point, your workforce, and how clearly you explain the first step.
How long should an incentive run?
The fintech company staged drawings over several months. Match the length to your enrollment window and event calendar, and keep each drawing tied to a specific moment.
What should the incentive reward?
Reward the action you want repeated, and define it before launch. A simple first step, such as adopting the Member app, is easier to track than a vague goal.
Can a smaller program use this play?
Yes. The mechanics scale. A smaller prize pool and one live event are enough to test the approach.
Ready to see all three plays side by side? Get the OE Playbook.
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