Category: Facts and Research

According to a new report from IDC, market share in wearable device shipments for Q3 2016 saw fairly little shifts relative to previous quarters but growth dropped significantly, reaching the single digits for the first time.  Most notably, the Apple Watch saw its number of shipments drop 71% year-over-year.  Fitbit and Garmin were the only two leading brands to reach double digit growth.  Total shipment volume for the quarter came to 23.0 million units, up just 3.1% from the 22.3 million units shipped in Q3 2015.  The table below breaks down the details of the shipments and ranks the leaders by market share.

q3-2016-wearable-market-share
It is important to note that these numbers reflect both basic wearables, which account for 85% of the market, and smartwatches.  Basic wearables still grew in the double digits despite a significant slowdown and the number of smartwatch units dropped.  The data provides a number of insights into the wearable market so we thought we would talk about some of them below. 

Fitbit Remains At The Top
Fitbit ended the quarter the same way it began it: as the undisputed worldwide leader of wearable devices, although their lead continues to shrink.  In Q3 2016, the global leader was able to hold their top ranking with market share in line with Q3 2015 (23.0% vs. 21.4%).  Growth was driven by the long-awaited refresh for the Charge HR with the Charge 2.  Rumors continue to surface that Fitbit will be acquiring smartwatch manufacturer Pebble, which reflects their desire to move beyond just basic wearables into the smartwatch market in a big way. 

Xiaomi Struggles
Xiaomi’s continues to carve out a market for affordable wearable device with lots of functionality.  The new “Mi Band includes heart rate tracking and is priced well below any competition, making it more suitable for impulse buying than any other fitness band.”  Despite its price advantage, Xiaomi delivered approximately the same number of units year-over-year (3.8 million vs. 3.7 million), resulting in similar market share from 16.4% in Q3 2015 to 16.5% in Q3 2016.  Despite the basic wearable market growing in the double digits, Xiaomi growth was only 4.0%.  Xiaomi continues to struggle to gain any significant traction outside its home country of China.

Garmin Expands Product Portfolio
Coming in third, Garmin offers one of the broadest product portfolios in the market, from the low-cost, corporate-only Vivoki to higher end smartwatches with GPS.  Garmin experienced modest growth of 12.2%, growing the number of units shipped from 1.2 million in Q3 2015 to 1.3 million in Q3 2016.  The brand continues to be a favorite of fitness fanatics. 

Apple Tanks
Apple saw a steep drop in it units shipped.  Apple shipped only 1.1 million units in Q3 2015 compared to the 3.9 million units in shipped in Q3 2016.  It is important to note that Apple launched its second-generation watches in mid-September so those numbers have little impact on Q3 2016.  With the holiday season coming up and a full quarter of results from its new device, Apple may be able to recover from this decline.

This challenge is why Wellable encourages the implementation of a bring your own device (BYOD) strategy for wellness.  A BYOD strategy for wellness allows employers to embrace all forms of wellness technologies, including devices and apps that are not Fitbit, Apple Watch, or Xiaomi.  It will enable consumer choice and result in lower costs for your program.  Download our free white paper for more information on BYOD for wellness.


Category: Facts and Research

Despite the long economic recovery in the United States and the strong performance of the stock market, financial wellness is not improving for many individuals and it is resulting in stress.  According to the Employee Financial Wellness Survey from PricewaterhouseCoopers (PwC), which tracks the financial well-being of full-time employed U.S. adults across the country, “many employees never fully regained stable footing” after the Great Recession.  Below are five statistics from the study that should make all employers concerned about the financial health of their employees and take action by incorporating financial wellness programs at work.

Increased Financial Responsibilities
According to the survey, the percentage of employees providing financial support for parents or in-laws increased 6% from 2016 (22%) to 2015 (16%).  Longer lifespans and lack of adequate long-term health care protection are increasing the financial responsibility onto the next generation.

Inadequate Emergency Savings
Employees are not satisfied with the amount of their emergency savings with 55% saying so compared with 51% in 2015.  Women have it worse with 60% saying they don’t have enough emergency savings set aside for unexpected expenses while 50% of men feeling the same way.

Rising Credit Card Balances
Employees are increasingly turning to credit cards to fill their funding shortfall.  Forty-three percent of employees earning $100,000 or more consistently carried credit card balances in 2016.  In 2015, only 32% did.  Baby boomers have it worst.  In 2015, 37% of boomers carried balances on their credit cards while 46% did so in 2016.

Underwater Mortgages
Eighteen percent of employees who own homes and carry a mortgage said that the outstanding balance of their mortgage is greater than the current value of their home.  Of the 18%, 59% have attempted to modify the terms of their mortgage with their lenders (consistent with 60% last year) and 33% have received a foreclosure notice within the last 24 months (also 33% last year).

Financial Stress
Financial stress is the biggest source of stress for employees with 45% saying that it was their biggest stressor in their lives.  Health concerns (15%), their jobs (20%), and relationships (15%) also topped the list.

 
Financial wellness programs are just beginning to become staples of employee health programs.  For organizations looking to incorporate financial wellness into their benefits offering for the first time, there are a number of budget friendly options to choose from.  For those employers with a 401 (k) plan, the plan administrator should have free financial wellness resources for their clients to use.  There are also a number of advocacy groups and wellness vendors, including Wellable, that offer a free financial wellness seminar/webinar.


Category: Facts and Research

A study published by Jiff evaluated two years of employer-sponsored wearable data and revealed a number of interesting points, many of which counter common beliefs about these technologies.  Below are some of the highlights that we found most interesting.

Workplace Wearables Are Popular And Increasingly So
Nearly one out of three (31%) large employers (> 1,000 employees) offered wearable devices for tracking physical activity in 2016.  That number could increase to as much as 50% with 6% and 17% of employers planning for wearable purchases in 2017 and 2018, respectively.

Extra fun fact (not related to wearables): App sponsorship is also on the rise.  Respondents to the survey revealed that 26% and 19% of employers sponsored apps to track employee diets and sleep.

Wearables Are For More Than Just Millennials
Employers do not need to feel that sponsoring wearable devices can be justified because it is of interest to the largest part of the workforce (millennials).  Based on user data from 219,335 employees enrolled in a company-sponsored wellness program, millennials are not the only generation adopting wearables.  Just over half of all employees under 40 participated in the wearable program (and there was no difference between those in their 20s and 30s). Forty-one percent of those age 40-50 participated, compared to 36% of workers age 50-60 and 35% of those over 60.

use-of-wearables-by-age
Sustained Engagement Through Challenges
Despite industry analysis suggests 70% of Fitbit users churn in less than 12 months, the study found that employers could sustain engagement for much longer through periodic corporate-sponsored wellness challenges.  Across four large employers customers, there was “no measurable decline in engagement for more than nine months following the program rollout, and for one employer, the study found levels of engagement that have been progressively increasing for more than 18 months.”  To be fair, 14 employers were involved with the full study, and since only a limited of number were included in this portion, there may be some selection bias confounding the results.

sustained-participation-wearable
The study went on to suggest three things employers could do deliver success in their wellness programs: (i) offer wellness challenges, (ii) provide device credits (subsidies for wearables), and (iii) deliver behavioral incentives (action-based rewards).  We could not agree more with this assessment, which is why we offer and encourage use of all three of these options in the Wellable Wellness Challenges platform.  Not mentioned in the report but highly advocated by us is the BYOD wellness strategy that allows employees to use the devices and apps that make the most sense to them.  Employers can reallocate the funds traditionally reserved for devices to other engagement enhancing elements of their programs, such as rewards.

BYOD For Wellness


Category: Corporate Wellness

According to a survey from CareerBuilder, more than a third of workers (35%) said they have called into work sick when they were feeling just fine.  The survey included responses from more than 3,100 full-time workers and more than 2,500 full-time hiring and human resource managers across industries and the United States.  The top reasons for calling in sick when feeling fine were not feeling like going into work (28%) and needing to go to a doctor’s appointment (27%).  Another 24% said they needed to just relax and 18% needed to catch up on sleep.  Meanwhile, 11% took the day off to run personal errands.

The survey also revealed something interesting about employers who suspect employees are abusing the sick day policy.  One-third of employers (33%) checked to see if an employee was telling the truth by requesting a doctor’s note, calling the employee, checking social media, etc.

 
The survey results highlight a number of problems in the modern work environment.  First, it seems that employees do not feel that they have enough time to detach from work to relax, destress, and take care of personal tasks, such as errands and doctor appointments.  Employee burnout is an issue plaguing workforces across the country.  Employers would be wise to enact policies that do not lead to employees abusing sick days.  In many cases, companies may need to do more; for example, some employers require employees to take vacation.  Another issue raised by the survey was the level of distrust that exists in the employer-employee relationship at many companies.  The consequences of this mistrust can manifest itself in more ways than just sick days.  Transparency in the workplace can go a long way to facilitate trust.

For whatever it’s worth, the silver lining in the survey results may be that the percentage of employees calling in sick when feeling fine was down from 38% from last year.  Regardless, this is an issue that employers need to be aware of and proactively address.


Category: Engagement

“Allowing your employees to bring dogs to work is a perk.  Texting an employee after they had to put their dog down is culture.”

The quote above from a Wall Street Journal article sums up the difference between perks and culture fairly well.  The article goes on to discuss the importance of and distinction between perks and culture.  In short, perks can do a great job in recruiting talent (who doesn’t want flexible work schedules and free food?) but contribute little to retaining them.


Per the author, perks lead to short-term happiness and are easily compared between companies.  Free beer and bean bag chairs can only do so much for a finite amount time, and there are no amounts of perks that can keep an unsatisfied, disengaged worker at an organization or performing to his or her best ability.  Also, companies lacking perks can easily “catch up” to recruit new talent.  This is why employers fighting for talent to drive their businesses must combine perks with culture.

Culture is made up of “emotion and experiences.”  It includes a genuine interest in the welfare of employees, professional and personal development, building a strong sense of community, and fostering transparency.  For employers, culture is much more difficult to build and often requires sacrifice.  Painting corporate values on a wall means nothing if an employer doesn’t remove the top performer who doesn’t embrace those values.  It often requires transparency as a two-way street, which means leadership must publicly own up to mistakes made and the consequences that arise from those errors.  As a result, culture is much harder to compare between companies and lends itself to being a more difficult tool to use in recruiting.  The good thing about strong cultures is that they are hard to replicate so employers without them cannot easily catch up, and positive cultures make it hard for employees to leave, which drives retention.

As employers seek to optimize their recruiting and retention strategy it is important for them to understand the dynamics and underpinnings of what constitute great perks and great cultures.  Despite their differences, both have a key role in talent management.


Category: Facts and Research

Loyal readers of the Wellable Blog know how important it is for corporate wellness administrators to embrace the consumerism of their industry.  Wellable has dubbed this embrace a consumer wellness strategy and encourages everyone involved with employee wellness to consider it.  In short, a consumer wellness strategy suggests that employee wellness should be built around increasingly popular consumer wellness technologies (wearable devices and mobile apps) rather than rigid proprietary technologies and practices that dominate the market today.  More data from Adobe on the state of the mobile app market affirms the merits of a consumer wellness strategy.

Consumer Wellness Strategy
According to the report, it’s getting harder to get people to try new mobile applications as consumers are sticking to what they know when it comes to the apps on their smartphones.  App installs are only up 6% year-over-year.  This is in contrast to launches of existing apps, which were up 24% year-over-year.

The report also found that app abandonment is also on the rise with five out of every 10 apps being used fewer than 10 times and two out of every 10 apps being used only once.  Specifically, 55% of health apps were used less than 10 times and 19% were used only once.  The number one reason for why people delete their apps is because they were perceived to be “not useful”.  The analysis is based on more than 290 billion visits from 16,000+ mobile sites and 85+ billion app launches.

These stats seem fairly dismal, but one hidden gem is that the best apps, as defined as those in the top 20%, saw significant growth in launches (62%) and installs (41%).  This means that existing apps that consumers are familiar with are the ones they will most likely continue to use.  These apps also are the ones in the best position to see a growth in new users.  From the perspective of a wellness coordinator thinking about launching a technology platform at their organization, it is important to consider the merits (or lack thereof) of launching a proprietary app from a wellness vendor.  Even without the findings from this research, proprietary apps have always had an uphill battle.  They lack critical features most important to users because they focus on the employer rather employee, do not provide choice or options that exist in the consumer market, and do not implement leading product management philosophies.  As a result, the usage of these apps is very low relative to the membership base touted by vendors and have incredibly low reviews in the app store.  Combined with the extra challenges in the market highlighted by the Adobe research, it becomes clear that wellness coordinators should focus on embracing consumer wellness technologies rather than enterprise wellness technologies in their organizations.  The sole focus of enterprise wellness technologies should be to empower and embrace consumer ones, not interfere or distract from them.


Category: Corporate Wellness

Many companies are investing in wearable devices, such as Fitbit and Garmin.  These investments come at a significant price, often as high as $100 per device.  They also result in ongoing expenses as companies find solutions for new hires and replacing broken or lost devices.  Despite these purchases, it remains unclear whether investing in wearables for employees leads to better health outcomes.  Regardless, Canadian insurance giant, John Hancock, announced that it will be subsidizing the Apple Watch Series 2 (approximately $400 retail) so employees can get one for as little as $25.

Similar to Aetna, who also is subsidizing Apple Watches for employees and its customers, the subsidy is part of the company’s wellness program.  Employees are asked to pay $25 upfront, and if they remain active and track their activities through the Apple Watch, they will not be asked for any more payments.  If employees fail to meet their goals, there will be a monthly fee on the device spread out over the course of 24 months that they will be required to pay.  It unclear what the policy is for employees with Android devices or if an employee loses or breaks the Apple Watch.  Either way, the investment is quite significant, and as such, the expectations from the program need to be equally grandiose.

The appropriate question for Aetna, John Hancock, and other companies considering a similar investment needs to address the opportunity cost for the subsidy.  With more than $300 in capital being contributed per employee, could these companies make better use of these funds while delivering on similar objectives?  Before we render any judgement, let’s see how things programs turn out and whether or not the companies continue to invest in the program.16


Category: Facts and Research

There is no shortage of studies assessing the ability of fitness trackers to promote physical activity, weight loss, disease management, and more.  Fitbit even created a research library just to manage and promote the hundreds of studies utilizing its technology.  Despite the increasing volume of research, there has been very little analysis about how communication surrounding such devices may contribute to their success.  Through interviews with 25 fitness tracker users, a recent study explores how and with whom people communicate fitness tracker messages and ventures to explain the effects of sociomaterial practice on interactions between wearable fitness device users.

Participants in the study communicated data from their fitness tracker through face-to-face communications, traditional technologies (text messaging, photo sharing, etc.), and social media.  The participants described, through interviews, the effects of the communication of their fitness tracker information, which are outline below.

Fitness Messages
The social interaction of sharing fitness results with acquaintances and strangers allowed for continued discussion on healthy behaviors.  The results of these interactions varied from user to user, but the common theme is that it added fuel, relevance, and importance to the physical activity that supported the one-way feedback the activity tracker alone could provide.

Interactions Between Fitness Tracker Users
Participants discussed how the social features built into fitness tracker apps helped them compete with peers, meet their goals, and stay motivated.  Most fitness tracker apps have leaderboards that allow users to compete in step challenges, which prompted them to keep pace with others, as well as goal setting that provides updates throughout the day about how someone is tracking toward their goal.  Combined with push notifications and easy access to app information, leaderboards and goal setting helped the users stay motivated.  This information could also be communicated to non-users to enhance adherence and achievement.

 
The results of the study highlight two important characteristics of fitness trackers that many people ignore when assessing their value.  First, they encourage users to share their information by allowing them to use their data as a vehicle to communicate about their physical activity.  Second, fitness trackers communicate information back to the users in the form of leaderboards, progress towards goals, calories burned, etc. to help them stay motivated.  The impacts of communication on the efficacy of fitness trackers should be represented, to some extent, in many of the other studies available to the public, but this study focused on communication as an engagement tool.  Kudos to the authors.  The study certainly has limitations, including the sample size, that are outlined in the document so follow up research is certainly needed.


Category: Corporate Wellness

A recent article in Employee Benefits News discusses the growing importance of “soft” benefits in recruiting and retaining talent.  Hard benefits, traditionally defined as health insurance and retirement plans, used to be sufficient for employees, but as these benefits have become more mainstream, leading employers are expanding offerings to attract employees.  The article reviews six emerging benefits that are increasingly being implemented as ammunition in the talent wars, and it should come as no surprise that five of the six benefits are related to employee wellness.  The five wellness benefits that made the soft benefits list were:

  • Subsidized gym memberships
  • Activity tracker competitions
  • Incentives for bicycle commuting
  • Healthier food and beverage choices
  • Flexible work arrangements

As a company that facilitates activity tracker competitions (a.k.a., wellness challenges), we were proud to see that the article mentioned the use of free smartphone apps.  Employers do not need to purchase every employee an activity tracker to support these challenges.  They can leverage free smartphone apps to track steps, distance, nutrition, and more.

Despite the popularity of wellness offerings in soft benefits, it should not be surprising that biometric screenings and health risks assessments did not make the list, as employees do not see these as attractive benefits.  Valuable benefits are designed to offer employees highly sought solutions that impact their favorability rating toward their employer, encourage them to recommend their employer as a great place to work, and improve the quality of their life.  Employees often feel uncomfortable sharing their personal health information with their employer.  Also, they would rather see their own primary care physician than having their blood drawn by a stranger.  Since the services of a biometrics screening are required to be covered under every health plan, providing onsite screenings offer no real benefit other than signaling to employees that their employers cares more about managing healthcare costs with an ineffective solution than truly caring for their employees.

The lesson here is that wellness benefits can go a long way in making sure a company has the right talent to succeed but not all wellness benefits are created equal.


Category: Facts and Research

A recent study published in the journal Preventative Medicine looks at whether social support, competition, or teamwork provides an answer to one of the ongoing dilemmas plaguing corporate wellness programs – participation.  Researchers from the Annenberg School for Communication at the University of Pennsylvania found that competition was a far stronger motivation for exercise than friendly support.  In fact, giving people support made them less likely to go to the gym less than simply leaving them alone.

According to Damon Centola, the senior author on the paper, “most people think that when it comes to social media more is better.  This study shows that isn’t true: When social media is used the wrong way, adding social support to an online health program can backfire and make people less likely to choose healthy behaviors.  However, when done right, we found that social media can increase people’s fitness dramatically.”

https://www.youtube.com/watch?v=RuiN2aB2rBA

The study recruited nearly 800 Pennsylvania graduate and professional students to sign up for an 11-week exercise program called PennShape.  PennShape provided the participants with weekly exercise classes, fitness mentoring, and nutrition advice.  The program was managed through a website the researchers built.  Participants who attended the most exercise classes during the program won prizes.

The researchers split the participants into four groups to test how different kinds of social networks affected exercise levels.  The four groups were: individual competition, team support, team competition, and a control group.  In the individual group, participants could see exercise leaderboards listing anonymous program members and earned prizes based on their own success attending classes.  For each team group, participants were assigned to a unit.  In the team support group, they could chat online and encourage team members to exercise, with rewards going to the most successful teams with the most class attendance.  In addition, those in the team competition group could see a leaderboard of other teams and their team standing.  Participants in the control group could use the website and go to any class, but were not given any social connections on the website; prizes in this group were based on individual success taking classes.

1-s2-0-s2211335516300936-gr3A review of the results showed the competition motivated participants to exercise the most, with attendance rates 90% higher in the competitive groups than in the control group.  Both team and individual competition equally drove the students to work out, with participants in the former taking a mean of 38.5 classes a week and those in the latter taking 35.7.  Members of the control group went to the gym far less often, on average 20.3 times a week.

The researchers were surprised by the number of workouts a week by members of the team support group (16.8, on average).  This is half the exercise rate of the competitive groups.  “Supportive groups can backfire because they draw attention to members who are less active, which can create a downward spiral of participation,” Centola says.

This study is certainly very interesting but should also be taken with a grain of salt.  More studies need to be conducted with populations that go broader than just students.  Nevertheless, employers, health plans, and wellness coordinators should think about the results of this research when creating their programs.