In today’s fast-paced corporate world, the health and well-being of employees have become paramount.
There is an expectation from today’s workforce for enhanced fitness, health and wellness opportunities, building flourishing and thriving people within the workplace. Corporations constantly seek innovative ways to guide their employees towards healthier lifestyles and improved well-being and resilience, as employees’ health directly impacts productivity, engagement, and overall company performance. Recognizing that this is an organizational imperative, many organizations are placing a stronger emphasis on wellness initiatives, searching for more wellness and fitness-focused amenities, aiming to create a work environment that supports both the physical and mental health of their teams. That is where savvy properties and landlords can make a difference.
Multiple studies highlight the positive ROI of corporate wellness programs. The returns are multi-faceted – generated through reduced healthcare costs, less absenteeism and better employee retention. A Harvard Business Review (HBR) study, “The Impact of Comprehensive Wellness Programs on Health Risk and Healthcare Costs” [Milani, Lavie], demonstrated that every $1 of wellness intervention yielded $6 in healthcare savings. In HBR’s “What’s the Hard Return on Employee Wellness Programs?” [Berry, Mirabito, Baun] , for every dollar spent on wellness programs, medical costs fall by about $3.27, and absenteeism costs fall by about $2.73. Finally, a study by the Institute for Health and Productivity Studies found that companies that implemented wellness programs had a 33% lower turnover rate than those that did not.
Employees who perceive that their employer cares about their well-being tend to become more engaged and invested in their work. This investment in employee well-being fosters a positive workplace culture and sense of community, which retains the employees and keeps the employers happy.
As a property manager or owner of a residential or business community, you have a unique opportunity to cater to the holistic needs of your tenants by providing a fitness centre and wellness programs onsite. By transforming property-managed fitness centres and wellness amenities into vibrant hubs of activity, well-being, community, energy, and engagement, a well-equipped fitness centre and amenity enables these properties to shine amidst stiff competition for today’s organizations.
Here are ways in which having a fitness centre can foster tenant loyalty in your community:
- Convenience: By having a fitness center onsite, employees can easily incorporate exercise into their daily routine without the hassle of commuting to a gym or, in some cases, leaving work to an offsite location and appointment. This added convenience shows that you value and prioritize the well-being of your clients.
- Enhanced community, culture and engagement: focusing on tenant well-being through wellness programs, such as group fitness classes and workshops, fosters a sense of community and belonging. This enhanced social engagement can lead to happier tenants who feel more connected to their building and fellow tenants. As a result, they are less likely to want to relocate, increasing tenant loyalty and retention. According to the International Council of Shopping Centers (ICSC), properties that offered fitness and wellness-related events saw an uptick in tenant engagement, which correlated with longer tenancy periods.
- Boost Mental Health and Physical Performance: Regular exercise reduces stress, improves mental health, and enhances performance. Offering a wellness-focused environment can lead to happier employees and tenants who are more likely to stay. This can result in companies renewing leases in buildings that support employee well-being, as it reduces absenteeism and boosts morale. A survey by CBRE (a global real estate firm) indicated that over 60% of companies prioritized wellness amenities when selecting office spaces, citing improved employee performance and satisfaction as key factors.
- Competitive Edge: Offering a fitness center helps differentiate your property in a competitive market by adding value to the tenant experience. It gives tenants an additional reason to choose and stay at your property over competitors. A report by JLL (Jones Lang LaSalle) found that commercial buildings with wellness with dedicated wellness programs were more attractive to long-term tenants, thereby reducing tenant turnover.
- Fostering Long-Term Retention and Loyalty: Encouraging physical activity through a fitness center provides long-term health benefits for tenants, which leads to the likelihood of long-term residency. Data from the Urban Land Institute suggests that properties with integrated wellness offerings have a higher likelihood of retaining tenants over the long term, particularly in the commercial office space market, where tenant retention is crucial.
In conclusion, a fitness centre and related health and wellness programs are more than an amenity for your tenants and their employees; it is a strategic business decision for term tenant loyalty and satisfaction. Improving employee health and wellness is investing in the future of the organizations and the property. Creating a space that promotes physical, mental, and social well-being provides a great workplace and a lifestyle that appeals to modern tenants. Take the initiative to enhance your wellness community with a fitness centre and wellness programs, and watch as tenant loyalty, your business, and overall satisfaction grow.
