What is corporate fitness, and why are companies investing in the health of the workforce? Looking good used to be all about the outward appearance. This concept has evolved today. Looking good translates to feeling good in today’s world. We often see toned and fit bodies in magazines and at celebrity events. They set a precedent that we follow.
We have come to realize that being healthy is the key to looking good. People are trying to be active, get their 10k steps in every day, eat healthy, and sleep enough. There is the realization that the best investment is in your health. Companies have surmised that a healthy workforce is more productive. That is the concept of corporate fitness.
It is a move aimed at promoting physical activity and healthy habits. There is a rise in workplace wellness programs. It isn’t just a “perk” anymore, but a business strategy. The benefits of corporate fitness programs have proven to be well worth the investment with tangible and intangible ROI.
What are Corporate Fitness Programs
A Google check explains corporate fitness as “employer-sponsored programs designed to promote physical activity and healthy habits among employees to improve their overall well-being, increase productivity, and reduce healthcare costs.” Employers are invested in the overall health of the employees to maximize their productivity and, in turn, benefit the organization. Companies have on-site gyms, subsidized memberships for employees at select gyms, step challenges, and fitness reimbursements.
Corporate fitness programs offer formats. There are remote, hybrid, and in-person programs to accommodate everyone. Companies have incorporated fitness and broader wellness programs in their workforce management. Fitness programs are primarily focused on physical fitness. Wellness programs holistically approach health. It includes physical activity, nutrition, sleep support, stress management, financial wellness, and social wellness.
Breaking Down the ROI: Key Metric to Measure
Reduced Healthcare Costs
The link between physical fitness and disease prevention is well-established. Remember the adage,” a healthy mind in a healthy body”? They had it nailed. Diseases such as obesity, type 2 diabetes, heart disease, and hypertension are lifestyle diseases. Regular physical activity can help prevent and manage these diseases. These conditions are among the most prevalent and expensive to treat. They lead to long-term medical care and absenteeism.
A comprehensive study by Harvard University has found that employers can save $3.27 in healthcare costs for every $1 invested in wellness programs. The numbers speak for themselves. Employers can save on healthcare by investing in corporate fitness programs. Employers also benefit from lower insurance premiums. A healthy workforce files fewer claims, which can help lower group health insurance costs over time. Some insurers offer discounts and incentives to companies that implement corporate fitness programs.
Increased Employee Productivity
Physical health can impact mental health. Being active and in good physical shape can elevate the mood. When people are in good physical shape, they are reported to be in a better mental shape. When you look good, you feel good. You will find that you are in a better frame of mind.
Physical activity will increase energy levels. Employees will have more energy to meet work demands and be more productive. All around, good physical health will also enhance mental clarity and resilience.
Lower Absenteeism
Healthier employees call in sick less often. Regular physical activity boosts the immune system and reduces stress. People will be able to manage work stress without burnout or taking illness-related breaks from work. The American Journal of Health Promotion has reported that companies with well-designed wellness programs saw a 25% reduction in absenteeism.
Higher Retention and Engagement
When employers invest in the health of the workforce, they send a message to the employees. A message that can translate to “we care”. This can result in higher morale among employees. It fosters company loyalty. It has cost-saving implications and reduced turnover.
The employer brand gets added value when corporate fitness is part of the package.
Boost in Team Collaboration and Morale
For large corporations, fitness challenges can create cohesive groups. It can help build teams and encourage camaraderie between different teams. Making connections outside of your department can have a range of benefits, like cross-functional collaborations, knowledge sharing and learning, enhanced communication, and innovations.
Barriers to ROI
Corporate fitness programs can offer strong returns for the company, but these programs face challenges that can impact the ROI.
Low Participation Rates
The best corporate fitness programs can show insufficient ROI if employee participation is low. This can happen when the employees are not motivated or lack awareness. There might also be a mismatch between the program and the employees’ actual needs. If the participation of employees is not significant, the overall health impact and the ROI will be unappreciable.
Poor Communication
Employee participation may be low if communication is not clear. Employees may not understand what’s on offer, how to participate, or how it can benefit them.
If the corporate fitness program is just a flyer or email rather than an initiative where leadership is visibly involved, employees may not engage. Firms where managers and executives lead by example run the most efficient corporate fitness programs.
One-Size-Fits-All-Approach
Sometimes, the corporate fitness program and the employees' needs may not be aligned. People have different lifestyles, needs, and work environments. Employees may be working in the office, remotely, or in a hybrid environment. The fitness levels of employees will be different. A corporate fitness program has to cater to all demographics.
Tracking the Wrong KPIs
Companies tend to focus on the wrong KPIs (Key Performance Indicators). The focus might be on the number of people signed up for the program without considering the outcomes that can affect the ROI. The end goal is not just participation, but changes in health index, absenteeism, healthcare costs, and productivity.
Maximizing ROI: Designing an Effective Program
Before designing a corporate fitness program, conduct a survey to understand the employees’ needs. Structure the program to include employees of all fitness levels, all work modes, and lifestyles. Offering incentives (gift cards or wellness points) can increase participation. Encourage the use of apps and tech tools to measure and gamify engagement. Leadership should lead by example. Employees will participate with gusto when leadership gets involved.
Paragon Body offers corporate fitness programs that have yielded effective returns. Read the member testimonials to really see the impact.
Intangible Benefits That Impact Long-Term ROI
When companies offer corporate fitness programs, the company culture shifts, and the brand image receives a boost. The improved mental health and reduced burnout will have a positive impact on the work environment. The company will attract top talent with its wellness-focused approach.
How to Measure ROI in Corporate Fitness Programs
Get the KPIs right. Participation, engagement, healthcare costs, and productivity have to be the primary KPIs. Survey before adopting the program and after, and compare the ROI.
Work with insurance providers to analyze the trends. Wellness platforms with reporting dashboards can help make the assessment easier.
Last Lap
Corporate fitness benefits the employee and the employer. Investing in corporate fitness programs will increase productivity and ROI. Companies with fitness programs show better ROI in terms of reduced healthcare costs, increased employee productivity, lower absenteeism, higher retention and engagement, and a boost in collaboration and morale.
Corporate fitness programs will benefit companies in the long run because ROI often grows year over year. After the pandemic, companies have started to view fitness programs as strategic assets. Employers and employees can reap the rewards of the program.
If your company is considering a fitness program, contact Paragon Body for the best corporate fitness programs.