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The Surprising ROI of In-House Gyms for Businesses

The Surprising ROI of In-House Gyms for Businesses

I’ve gone on in past blogs about the benefits in employee wellness of an in-house gym. And while this might make sense conceptually, you are likely skeptical until you see the data (I don’t blame you, I’m the same way). Let’s dive deeper into the numbers behind the benefits of an in-house gym and break down the ROI of an in-office gym.

 

  1. Productivity Improvements

The American Psychological Association (APA) has found that short exercise sessions can enhance concentration, creativity, and mental stamina1. If, hypothetically, this leads to a modest 5% improvement in productivity for those who exercise, and only 20% of the employees use the gym, that's an effective 1% overall productivity boost. For a business with annual profits of $5 million, this translates to an added value of $50,000.

 

  1. Employee Retention

Recruiting, training, and integrating new talent can be costly. A Glassdoor survey revealed that 57% of job seekers prioritize benefits when considering job offers2. Assuming an in-house gym reduces turnover by just 3% and that the average cost of replacing an employee can vary from $4,000 to more than $20,000 for specialized roles3, a company with 100 employees could save at least $12,000 annually.

 

  1. Reduced Absenteeism

The CDC states that physically fit individuals tend to take fewer sick days4. Let's conservatively estimate that regular exercise reduces sick days by 2 days per year for gym users. If an employee's daily output is valued at $200 and 20% of the workforce uses the gym, for a 100-person company, that's a saving of $8,000 annually.

 

  1. Enhanced Team Building and Morale

Though harder to quantify, let's assume improved morale and team dynamics (those group training sessions do wonders for team cohesion) lead to an additional 2% boost in overall productivity. In a company generating $5 million in profits, that's an added value of $100,000.

 

Given the above factors, if a large gym costs $50,000 (setup & minimal maintenance), the estimated tangible returns amount to $170,000 ($50,000 + $12,000 + $8,000 + $100,000) per year, yielding an ROI of 340% after only the first year. These returns continue every year afterwards without the cost of a new installation.

 

While the actual figures might differ based on company size, industry, and workforce demographics, it's blatantly evident that the financial benefits of an in-house gym can be not just positive, but substantial. And in our experience, most companies’ gyms cost much less than that $50,000 example. A commitment to employee well-being might not just be morally right; it could be a savvy business decision.

 

Sources:

American Psychological Association. "Exercise fuels the brain's stress buffers."
Glassdoor Team. "Benefits & Perks Statistics."
Society for Human Resource Management (SHRM). "Average Cost-Per-Hire for Companies,"
Centers for Disease Control and Prevention. "Physical Activity Reduces Chronic Disease."
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