It’s the time of year that most companies are well into their budget progress for the coming year. Where are they making cuts, where are they adding funds, and what should they maintain as they approach a new fiscal year. We’re here to shed light on the best ways to budget for health and wellness, and for those with access to a Hidden Gym (or a facility professionally managed by Hidden Gym), how we can help you.
What’s everyone else doing and how’s it going?
- 52% of Companies offer wellness programs
- 72% of employers?saw a reduction in healthcare costs after implementing a wellness program.
- The average return on investment (ROI) for employee wellness programs is?six-to-one.
- Wellness programs can?reduce absenteeism by 14-19%.
“Nelnet asks departing employees in exit interviews what they will miss most. The number one answer: the wellness program.”
What do other company’s wellness programs include?
- Health Screening
- Flu Shots & Disease Testing Events
- Incentives for Exercise
- Gym Membership Allowances
- Access to an On-Site Gym
- Health Coaching
- Healthy Food Options
“H-E-B estimates that moving 10% of its employees from high- and medium-risk to low-risk status yields an ROI of 6 to 1.”
How much is this going to cost?
We’re going to focus in on Gym Membership Allowances & Access to On-Site Fitness Centers, since that is our #1 Area of Expertise.
Gym Membership Allowances
- Corporate Membership Programs direct with Health Clubs
- Most commercial fitness centers offer incentives to large groups otherwise labeled Corporate Memberships.?It’s all about scale here as well as the type of facility you partner with. These membership costs can range from $5 - $50 per month.
- Reimbursement Programs
- Many companies will offer reimbursements for gym memberships. The plus side of this is that employees can choose their favorite type of facility, increasing their likelihood of using it. The downside is that there is likely no bulk discounts to be earned, and because of the wide variety of prices of different health clubs it can be hard to find a plan that feels fair. Employee 1 may be fine going to a gym that costs $9 per month but offers no guidance or programming. Where employee 2 may want to attend a facility that offers classes and professionally led programs that costs $199 per month.
- Aggregators
- Another option is using what the industry calls Aggregators, which are companies that have negotiated deals with lots of facilities. Your company pays the aggregator and your employee get their choice a variety of approved facilities and classes. The two most popular options of these programs are GymPass and ClassPass.
- Subsidized through rent
- Generally, you will find 2 arrangements between the on-site fitness center and the property tenants. Option 1 being that the fitness center is “free” to use, meaning it’s already been added to the rent rate. Or option 2 being that there are additional charges to use the on-site fitness center.
- 100% Employer Provided Membership - Paid in Full Annually
- If an on-site fitness center is an additional charge, paying for a large group of employees in advance is the most expensive upfront but annually the cheapest option. Most facilities will offer not only a bulk discount, but also a discount for paying in advance. This is the recommended option for companies who are confident in their wellness programs and it’s ROI.
- 100% Employer Provided Membership – Paid Monthly
- This is the most popular option for a few reasons:
- It’s less upfront cost?– paying for memberships in advance is cheaper annually but it’s a lot of money out of pocket. Monthly payments allow companies to break up the cost better.
- It’s more flexible?– for companies that are forecasting growth or a potential down size in labor, they value being able to increase or decrease the amount of memberships provided on a more frequent basis.
- 100% Reimbursed Membership – Paid Annually
- The costs savings here will be related to paying in advance, however there will likely be lost savings because most facilities will not offer group pricing if the memberships are being paid directly by the employee.
- This option has some savings but not the maximized savings like a employer provided, paid in full option.
- The advantage here comes back to flexibility. Employees can choose their facility, which increases their likelihood of using it.
- 100% Reimbursed Membership – Paid Monthly
- This option offers the least amount of cost savings, but offers maximal flexibility and the least upfront cost.
- Employee/Employer Split Payment
- Another popular option is cost splitting. Many companies will reimburse up to a certain annual or monthly budget, and the employee is responsible for the rest.
Building Your Own Fitness Center
A few metrics that you can use to calculate building you own facility.
- $25 - $250/Sq. Ft for Finish Out
- $25-$50/Sq. Ft for Equipment
