Employees are increasingly using in-app rewards to cover essentials rather than to treat themselves, according to an analysis of more than 10,000 users on the YuLife app.
Staff are using their ‘YuCoins’, rewards earned on the employee benefits app, to buy ‘essentials’ like groceries and to pay for home maintenance.
This is a shift from reward redemption activity in 2021 when employees overwhelmingly spent their YuCoin – YuLife’s in-app currency – on ‘luxuries’ such as Amazon vouchers or technology products.
The app provider said that by 2024, the level of app rewards redeemed to pay for luxury items had “reduced significantly” as employees use their YuCoin for ‘essentials’.
Biggest shifts
The provider said the change in app use was most apparent for lower-paid workers in traditionally blue-collar occupations like construction and manufacturing.
In December 2021, only 17 percent of this group’s YuCoins were spent on groceries, but by December 2023 they were spending more than double this amount (46 percent) of in-app rewards on essentials.
Spending on ‘luxuries’ among blue-collar workers fell from almost 70 percent in 2021 to around 50 percent in 2024.
Higher-earning ‘white-collar’ workers in professional roles also showed this change in reward redemption behaviour. In 2021 they spent just 11 percent of their YuCoin on essentials, rising to 25 percent in 2024.
In 2024, around 60 percent of higher earners-rewards are spent on non-essentials, compared to 72 percent in 2021.
Sammy Rubin, CEO and co-founder of YuLife, said the app user data highlights the growing importance of meaningful employee benefits that can adapt to employees’ evolving needs. He urged businesses to help employees cultivate a sense of financial wellbeing, as the stress financial insecurity induces can significantly impact work productivity and engagement.
Engage with gamification
Yulife’s gamified app encourages employee engagement and reward redemption by setting employees daily challenges and quests. These range from physical activities like walking a certain number of steps, to mindfulness exercises such as meditation sessions. Employees that complete these challenges earn YuCoin, which they can accumulate and redeem for rewards.
The app uses friendly competition or ‘duels’ to boost engagement. An employee can challenge a coworker to see who can achieve more steps in a day. Yulife’s Rubin explained: “This can help to foster a sense of community and teamwork, while also making physical activity more fun and engaging.”
There are also ‘levels and leaderboards’, where members of staff can participate in activities and complete challenges to help them ‘level up’ in the app.
Rubin explained that higher levels unlock access to better rewards. “Leaderboards showcase top performers, encouraging a healthy sense of competition within the workplace,” he said.
Digital currency
App rewards come in the form of Yucoin. For employees, it acts as a digital currency that employees earn by engaging in various health and wellness activities within the app, including walking, meditation or even completing Sudoku challenges.
Earning YuCoin rewards serves as an incentive for employees to maintain a healthy lifestyle.
“Employees can redeem their earned YuCoin for a variety of rewards, such as gift cards from leading retailers like Amazon or Sainsbury’s, discounts on wellness products, or even charitable donations,” Rubin explained. “This tangible benefit makes wellness activities more appealing and rewarding, and serves as an incentive for employees to maintain a healthy lifestyle.”
Data insight
For employers, the gains are in fostering a healthier, more engaged, and productive workforce, Rubin said.
“By incentivising employees to engage in wellness activities, employers see improvements in overall employee health, which can lead to reduced healthcare costs and absenteeism.”
Data insights from the app around health and wellness trends at their workplace are available to employers in the form of aggregated data. Rubin said: “This data can inform future health initiatives and benefits planning, ensuring they are aligned with employee needs and preferences.”
App evolution
Asked how he sees employee app use evolving in the next 12 months, Rubin said: “I see YuLife evolving into an even more integral part of employees’ daily routines.
“As we continue to refine our gamified approach, I expect to see more personalised experiences that align with individual health goals, making the app not just a tool for rewards, but a trusted partner in wellbeing.”
He added: “With advancements in AI and data-driven insights, we’ll be able to anticipate needs and offer proactive support, fostering a culture where wellbeing is seamlessly woven into the workday.”
Gamification advocate
As an advocate of using gamification to support employee financial wellbeing, he said: “Employers can leverage gamification to better support employee financial wellbeing by making benefits more engaging and accessible.
“Traditionally, benefits like group life insurance have lacked day-to-day value, leading to low engagement and retention. Gamification changes this by integrating game mechanics—like points, rewards, and challenges—into the employee experience, turning the use of benefits into a rewarding activity. This not only encourages daily interaction with financial wellness tools but also helps employees see the tangible impact of their benefits, fostering a stronger connection between employees and the support available to them.”
He said: “Ultimately, gamification transforms benefits from a passive offering into a dynamic tool that actively contributes to employee wellbeing and business success.”
