The problems that managers of corporate fitness centers face can differ based on company size, budget, employee types, and workplace culture. Here are common problems we see when companies choose to insource the management — and how outsourcing might make sense.

1. Hiring and training staff
Recruiting, training and retaining qualified fitness instructors, trainers, and support staff requires time and dedication. Staffing problems can slow things down and lower the quality of service.

Most underestimate the true cost of losing an employee—including advertising, interviewing screening, hiring, onboarding, lost productivity and impact on employee morale. For example:

• The cost of replacing an individual employee can range from one-half to two times the employee’s annual salary—and $1,500 for an hourly worker. (1)
• 33% of U.S. hiring managers said turnover cost their companies an average of $36,295 annually in lost productivity and rehiring costs. More than 20% said that number climbs to $100,000 or higher for their company. (2)

Hiring a fitness management company allows you to be involved in the interview and selection process, but takes the burden off you to recruit, train and manage your fitness staff. Fitness vendors know the unique challenges that corporate fitness centers face and will offer custom solutions and strategic advice. They can also make quick changes to staffing levels, hours of operation, and programs to adapt as the business grows, or as employees’ needs change.

2. Upkeep and maintenance of equipment
Scheduling repairs, replacements, and maintenance for equipment can be time consuming, however outdated or broken equipment can cause downtime, safety risks, and negative experiences for employees.

Outsourcing your operations means you can turn the responsibility of upkeep and maintenance over to your vendor. They will do it for you and will keep you informed of issues as they arise. Additionally, they will be able to offer ideas and consultation on the right equipment for your population and space and will be able to get you discounts on equipment purchases.

3. Low utilization
Unfortunately, build it and they will come doesn’t work well when it comes to fitness centers. Employees are looking for a more engaging experience.

It can be hard to get people to use the fitness center regularly if they are not aware of it or motivated to use it. Low membership rates can affect how well the fitness center works.

Outsourcing partners can make sure that the fitness center meets quality standards and provides excellent service. Service level agreements and performance metrics can be set up to keep an eye on and rate the vendor’s work.
 
4. Regulatory compliance
It is imperative that all safety, health, accessibility, and other rules are followed. If your company doesn’t follow the rules set by regulators, it could face fines, penalties, and legal problems.

When you outsource, you share the duties that come with running the fitness center. This includes duties related to safety, legal obligations, maintaining equipment, and following the rules. Fitness management vendors stay current on requirements and are experienced at foreseeing issues and mitigating them.

5. Innovation and evolution
If you want your fitness center and wellness program to stay competitive and up to date, you need to keep up with changes in digital platforms, wellness trends, and fitness technology.

Outsourcing to a fitness management vendor allows you to benefit from knowledgeable experts that do this every day for organizations just like yours. They can use their knowledge and connections to produce new ideas to keep the user experience fresh and exciting.

Overall, outsourcing the management of your corporate fitness center is a smart move that helps you make the best use of your resources, improves service quality, lowers risks so you can focus on your main duties, which creates value for your company and employees.

6. Elevate benefits
When you outsource your fitness center management, you can depend on the vendor to help navigate employees and refer them to other benefits at the company to create an easy participant experience for employees. Your fitness center vendor should have a seat at the benefits table, so that they can contribute ideas to the overall benefit strategy of the company.

Learn more

• Top health and fitness amenities for employees and tenants
• Eight benefits of staffing your fitness center
• Top ways to boost fitness center engagement and revenue

Connect with us to learn how a well-managed fitness center can boost engagement and add more revenue per square foot.