The Potential and Promise of Health and Fitness in the Workplace
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Funny image isn’t it? What would pineapples and pumpkins have to do with a laptop and work phone? Let alone, why and when would they ever sit side-by-side? So too has this question arisen between the images of health and fitness alongside the work environment. Why and when would they ever sit alongside one another? Would it ever make sense? Turns out, it’s an image and concept that shouldn’t be as odd as it may seem.
Health and fitness amenities in the workplace are a fast-growing trend in commercial real estate. Companies, large and small, are adding gyms and other wellness related facilities to their amenity offerings as a way to increase productivity of employees, lower healthcare costs, limit absenteeism and incentivize individuals to come back to the office after getting comfortable working from home.
The idea of fitness and wellness in the workplace is not new. The first recorded examples of worksite health promotion can be traced all the way back to the Pullman Company, a railroad car manufacturer, in 1879 with the company focusing on creating more capable employees through promoting athletics and employee engagement. In 1911, the National Cash Register Company opened the first on-site gym in 1911 [2]. These pioneering programs were amazing and grew from ownership’s understanding that a healthier employee is a more effective employee. The idea was unfortunately not widely implemented across the whole of the workforce. Workplace wellness has only been around in its modern guise since the mid 1970’s, right around the time the Occupational Safety and Health Administration (OSHA) was founded [1]. The passage of the Occupational Safety and Health Act in 1971 helped to shine a light on the health hazards associated with work and highlighted the need for employee health and wellness programs. As workplace wellness has evolved over time, fitness has come front and center with employees requesting and employers creating programs and facilities to keep the workforce happy, healthy and productive [2].
The Potential
Fitness in the workplace with in-house programming and facilities has for years been viewed as a massive potential cost saver for corporations and employers of all sizes. The rise in health care costs over the past couple of decades has made any possible savings a necessity. A study conducted by the Dupont corporation, an American multinational chemical company [3], from 1985-87 helped illuminate the savings by showing that those taking part in the company sponsored fitness and wellness program took 11,726 fewer sick days than those in the control group. It’s not just Dupont either, other companies have consistently seen financial benefits by implementing fitness and wellness at work and offer programs and services to improve the health of their workforce. Some examples include:
Johnson and Johnson – As a large multinational pharmaceutical and medical technology corporation, Johnson and Johnson has been a leader in corporate wellness for decades. The company offers on-site fitness facilities and access to a multitude of other well-related services such as nutrition counseling, financial awareness and even child-care coverage. A large study focusing on J&J’s employee wellness program reported between 2002 and 2008 a return of $2.71 for every $1 spent on employee wellness [5].
Salesforce – A cloud-based software company that provides customer relationship management applications for businesses with its headquarters in San Francisco is leading the way into holistic health practices in the workplace. They offer reimbursement for outside gym memberships and have large corporate fitness facilities at their headquarters. The company also encourages taking breaks and mindfulness for employees to provide a more holistic work/life balance [6][7].
Lowe’s – A large American home-improvement and hardware chain, Lowe’s recently opened a massive gym on its corporate campus to reward employees for their hard work and to push for a healthier overall work culture. The company also offers counseling services to employees and their families as well as a multitude of other health-related services [8].
These are just a few examples, but there are countless more that have shown the massive upside potential of building out a robust health and fitness offering for workers.
The Promise
Following the pandemic in 2020 and the rise of work from home positions, employers and property owners are now also using fitness facilities and other health focused amenities to bring the workforce back to the office. Corporate-sponsored health plans and fitness offerings are increasingly being augmented by new amenity-driven real estate trends. (4) These trends include, but are not limited to, the addition of gyms into multi-tenant buildings and healthier food offerings on business campuses. No longer is the fit employee just a weekend warrior who must go elsewhere for their workouts or lunches, they are now able to save themselves time, money and energy by getting all of this at the workplace. With benefits like that so closely available, it is hard to argue against returning to the office. Bringing people back to the workplace, lowering healthcare costs, decreasing absenteeism and creating a happier, healthier workplace, workplace health programs and fitness facilities provide limitless promise to business owners or managers.
Potential Issues
Having a gym on-site is an excellent way to make it easier for employees to get fit and for companies to reap the benefits of a healthier workforce. One problem though, that undoubtedly will arise, is driving the actual usage and consistent attendance at facilities and programs. The convenience and proximity to facilities is incredibly important, but driving usage and adherence to a program is what will ensure a favorable return on investment for corporate gym locations. Leadership is incredibly important in the implementation of corporate wellness programs and fitness facility usage. Corporate leadership needs to be involved in incentivizing and motivating employees to use the onsite gym or to talk to the nutritionist or take a mindfulness class, etc. If an employee knows that their boss, or even the CEO, of the company actively supports them in becoming fitter and healthier and they see individuals leading from the front, they are far more likely to commit to a program. (9) Other issues also include management of the fitness facility itself. Maintenance alone can run around 2-3% of total revenue in a commercial fitness facility, meaning for a company sponsored gym that cost is coming out of the benefits associated with a healthier employee. Other potential issues and costs include employee salaries, insurance modifications to include fitness facilities in multi-use buildings and increased utility costs. All these things can erode the benefits of company sponsored fitness facilities.
Conclusion
Companies need to address rising healthcare costs, employee absenteeism, worker motivation and the general negativity surrounding a return to pre-pandemic work conditions. The addition of fitness and health programming and facilities is a proven and effective tool in the belt of the business operator to improve the overall productivity of an employee. This is an opportunity for real estate owners and investors to leverage these tools to produce a strong ROI by offering these services and facilities to tenants. Companies like Senaura Spaces are well positioned to help implement these strategies and provide the services and amenities that tenants want in this new work environment.
References
https://journals.sagepub.com/doi/abs/10.1177/109019819001700307
https://www.jll.ca/en/trends-and-insights/workplace/fitness-amenities-can-help-offices-lead-pack
https://hbr.org/2010/12/whats-the-hard-return-on-employee-wellness-programs
https://www.axios.com/local/charlotte/sponsored/lowes-hq-fitness-mooresville-jobs-154725