What are the Benefits of Employee Gym Membership Schemes?
18 December 2024
We all know that getting active is good for our bodies and minds, but 30% of UK adults are sedentary for up to six hours per day and more on weekends. Sedentary refers to when someone is seated or inactive, and it’s common among desk-based workers to spend most of their time seated. We’ll explore what this means for employees and businesses and explore the benefits of employee gym membership schemes.
Summary:
How your Lifestyle can Impact Your Physical Wellbeing
Why is Physical Health and Wellbeing Important?
The Benefits of Offering Employee Gym Memberships
Can a Company Pay for Gym Memberships for Employees?
The Benefits of Embedding Gym Discounts
Reap the Benefits of Employee Gym Membership Schemes with Pluxee UK
What is Physical Wellbeing?
We always say wellbeing is personal, and what’s needed to fill our cups differs from person to person. That said, there is a specific meaning for what we’re covering when discussing physical wellbeing. Our physical wellbeing refers to the health and quality of our lifestyles - our ability to perform regular daily activities without feeling overly tired or stressed. Sleep, exercise and nutrition can all positively or negatively impact our physical wellbeing.
If our physical health and wellbeing are poor - if we can’t get through our days without feeling tired or unwell, then we’re unable to perform our best at home or work. Worse, we could be on the path towards health-related conditions.
How Your Lifestyle can Impact Your Physical Wellbeing
Lack of sleep and a poor diet are lifestyle choices - although there are things that are beyond our control that impact how much sleep we get. Lack of movement and exercise can also negatively affect our physical wellbeing, as well as mental and emotional health.
35.9% of Brits are recorded as being physically inactive, which is higher than the global average. An unhealthy, sedentary lifestyle can lead to issues like cardiovascular diseases, metabolic diseases, joint and skeletal problems, and hypertension. Becoming overweight is also a risk and one that creates other physical, mental and emotional concerns.
Discover how to build exercise into your busy day. Listen to our podcast - Your Employee Mental Health Toolkit.
Why is Physical Health and Wellbeing Important?
Taking care of our physical health and wellbeing is vital to prevent avoidable illness. The mind and body are connected, and when we feel physically unwell, it also negatively affects our mental wellbeing. That endorphin boost we get from a morning workout can carry us through the rest of the day, energising us to do our best.
This boost applies to all areas of life. Feeling mentally and physically good at work helps us think clearer, better manage stress, be more productive, motivated and engaged.
That’s the positive, but the other side is that employees with poor physical health and wellbeing will likely be more absent, stressed, and less able to problem-solve effectively.
The Benefits of Offering Employee Gym Memberships
We’ve established that physical health and wellbeing are important, so what are the benefits of offering employee gym memberships for the employee and employer?
Benefits for the Employee
- Affordable exercise: Gym memberships can be expensive, making them unviable to many. Offering employee gym memberships and discounts makes healthier lifestyles more attainable.
- Social connection: Gyms and clubs are great places to meet new people. Employees working mainly at home can sometimes go days without seeing another person in the flesh.
- Physical health: Exercise is part of a healthy lifestyle. Helping employees get more active can reduce avoidable illness.
- Exceptional choice: Our Discounted Gym Membership scheme gives employees up to 25% off at over 3,000 gyms, bootcamps, fitness centres and online platforms.
Benefits for the Employer
- Employee engagement: When employees feel good about themselves, they’re happier in themselves, too, and this helps boost employee engagement.
- Motivation and productivity: The endorphin boost we get from exercising helps increase energy and motivation. When an employee takes the steps to commit to their physical health, they bring that mentality to other areas of their lives, including work.
- Reduce absenteeism: The healthier your employees are, the less sick they’ll be, reducing costly absenteeism.
- Enhance Employee Value Proposition (EVP): A Discounted Gym Membership scheme is a cost-effective way to enhance your EVP. It gives employees a tangible benefit that improves their health, with little to no business overheads.
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Employee satisfaction: Showing your employees that you’re committed to their wellbeing increases their loyalty to your business and overall job satisfaction.
Can a Company Pay for Gym Memberships for Employees?
An employer can pay for a gym membership for employees, either taxed as earnings or a taxable Benefit in Kind (BiK). It all depends on how you fund it and your admin preferences.
If you were to pay your employees an extra amount each month to cover the cost of a gym membership, it would be taxed as earnings through PAYE. Alternatively, if you prefer to pay for gym membership for employees directly, it would be a taxable BiK, requiring the completion of a P11D form sent to HMRC via payroll.
Then, we have the ‘No Cost Benefits in Kind and Making Good’ scenario. Say your business pays for a gym membership for employees, but they contribute towards the cost through salary deduction repayments on their net salary (after tax and NIC) - they're ‘making good.’ The employee has reduced the benefit amount by paying for some of it.
Unless an employee repays the full value of the gym membership, you’ll still have to report the amount given as a benefit via payroll or on a P11D form. It’s also worth noting that there are no additional tax or NIC savings should you process the repayments via salary sacrifice instead of salary deduction.
The Benefits of Embedding Gym Discounts
So, where does our Discounted Gym Membership fit into the narrative?
Unlike the examples above, where the business funds the membership, with our Discounted Gym Membership, employers embed an employee benefit that opens the door to over 3,000 gyms, bootcamps, fitness centres and online platforms. From there, the employee decides if they want to use the benefit, purchasing their gym membership at a discounted price.
From an admin perspective, it’s a clear win. Once you've embedded the benefit into your business, it’s up to the employees to act. There’s no P11D to complete or salary deduct repayment scheme to initiate.
It may involve an employee paying up-front but also gives them more options. When organisations pay for a gym membership for employees, they’re likely first to negotiate a discount with a specific provider or nearby gym. While it supports the local community, it can be pretty restrictive for employees, especially those who travel a fair distance to the office or hybrid and remote workers.
Location is everything, and with so many options - including exercise programmes employees can do at home - allowing your people to choose where and how they want to exercise is the best way to make a difference.
Inclusivity is essential, a topic we cover in our blog, Are Your Fitness Discounts Inclusive?
Reap the Benefits of Employee Gym Membership Schemes with Pluxee UK
We understand the importance of inclusive employee benefits and that employees must engage with them to be most effective. Offering employees gym discounts allows them to take advantage on their terms, choosing the best space, place and style of exercise for them.
Our partnership with our gym and fitness discount providers continues to grow, allowing us to give your employees even more choices under one consolidated benefit.
Sources: GOV.UK
