On August 5, Fitbit – the first wearables company to go public – announced its first quarterly earnings since its initial public offering (IPO) in June – and they were impressively strong. The company recorded its highest quarterly revenue ($400 million) in the eight-year history of the company. Profits soared as well, nearly tripling from the same quarter last year, from $18.3 million to $51.3 million.
Fitbit’s success reflects the broader growth of the health technology market. Fitbit sold 4.5 million connected health and fitness devices in the second quarter of 2015 – including many of its new ChargeHR wristband and Flex wristband. But just as – if not more – critical to last week’s robust earnings report was Fitbit’s success executing contracts with large employers.
In the earnings report, Fitbit announced it significantly expanded its corporate sales. The company signed up 50 of the Fortune 500 to buy Fitbit devices for employees as part of those companies’ health benefits programs. With a majority of employers offering employee health benefits programs, and adopting new wearables, apps, and digital solutions as part of them, Fitbit’s growth in the enterprise market should come as no surprise.
Challenges for Ahead for HR?
However, as this trend continues and more companies expand their health benefits programs, employers face new challenges. And one of the biggest is how to manage the different types of newly offered benefits, programs, apps, and fitness trackers that their employees use and that the employers themselves offer. Businesses need a way to match the right incentives and programs to the right employees. After all, giving a big incentive for the marathoner in marketing to get a Fitbit is not a good use of dollars.
But just as importantly, they need a way to see which programs deliver healthier outcomes for employees and a return on investment for employers – and which are not. For too long, auxiliary health benefits have been point solutions, hard to find and use by employees and hard to manage by employers. If we want to harness the potential of these innovations, then companies need a way to get the most out of them. And that’s why we developed Jiff’s enterprise health benefits platform.
Jiff’s beautifully designed, data-driven platform allows employers to deliver personalized benefits programs to each employee. It’s simple for employers to deploy and manage, and for employees to engage. The platform lets employers design customized programs that meet the individual needs of each employee, receive real-time insights on effectiveness, and adjust incentives and benefits at the click of a button.
Fitbit’s growth is one sign that the market for new digital health tools, wearables, apps, and programs is growing and will continue to flood the enterprise market. With each passing month, employers will have more options than ever to help their employees’ reach their health goals and reduce their health expenses. Now is the time to get the tools in place so that management is fit enough to keep up with – and get the most from – innovation.