Fitness Reimbursement Benefits: A Flexible Approach to Employee Wellbeing

Dr. Olga Morawczynski
October 10, 2024

Fitness reimbursement benefits are becoming a popular way for employers to promote health and wellness in the workplace. With more employees recognizing the importance of physical activity, employers are finding that offering fitness benefits can help boost morale, improve productivity, and even reduce healthcare costs. However, creating a fitness reimbursement benefit program is not a one-size-fits-all approach. Employees have diverse needs and preferences when it comes to staying active, and the most successful programs are those that reflect this diversity.

There are different ways employers can set up fitness reimbursement benefits, from standalone programs to integrating them into wellness or flexible spending accounts. It’s essential to think outside the box when defining what fitness means and align benefits with what employees actually want.

Standalone Fitness Reimbursement Benefit Programs

One option for employers is to offer a standalone fitness reimbursement benefit. In this setup, employees receive direct financial assistance or reimbursement for fitness-related expenses. This could include gym memberships, fitness classes, personal training sessions, or equipment purchases such as yoga mats, dumbbells, or even running shoes.

Standalone programs are relatively straightforward and easy to implement. Employers typically set a fixed amount that employees can claim back annually or monthly for eligible fitness expenses. For instance, an employer might offer $500 a year for fitness-related activities, and employees submit receipts for reimbursement up to that amount.

Standalone programs allow employees to choose the activities that best suit their fitness preferences. However, these programs can be limiting if they only cater to traditional forms of fitness like gym memberships. Not everyone finds motivation at the gym, and employers need to think beyond the conventional when structuring fitness reimbursement benefits.

Fitness Reimbursement as Part of a Wellness or Flexible Spending Account

Another option is to include fitness reimbursement benefits as part of a broader wellness program or flexible spending account. These programs often offer employees a wider range of choices for using their benefits. For instance, employees could use a portion of their wellness allowance or FSA for fitness activities or allocate it toward other wellness-related expenses, such as mental health services, nutrition counseling, or ergonomic equipment.

Incorporating fitness reimbursement into a wellness program or FSA provides employees with the flexibility to prioritize what’s most important to their overall wellbeing. For some, fitness might mean signing up for a boxing class, while others might use the funds for stress-relief options like yoga or meditation. This approach also helps employers cater to a broader spectrum of health needs beyond physical fitness.

A wellness or FSA approach may require more administrative effort to set up and manage, but the flexibility it offers employees can make it a highly attractive benefit.

Thinking Outside the Box: Redefining Fitness

It’s important for employers to recognize that fitness doesn’t look the same for everyone. While some employees may thrive on intense physical activity like pounding weights at the gym or running marathons, others may prefer more moderate activities like walking, stretching, or participating in a dance class. By expanding the definition of fitness, employers can design programs that are more inclusive and appealing to a wider range of employees.

For example, employers can offer reimbursement for non-traditional fitness activities like:

  • Walking clubs: Organizing a lunchtime walking club can encourage employees to get moving during the workday while building camaraderie and helping them connect with new colleagues.

  • Fitness challenges: Organize friendly competitions, such as step-count challenges or biking to work, where employees can track their progress and earn rewards.

  • On-site classes: Employers can provide fitness classes in the office, such as yoga, Pilates, or Zumba. These classes are not only convenient but also help foster a sense of community within the workplace.

  • Subsidizing outdoor activities: Offering reimbursement for hiking club memberships, outdoor fitness classes, or adventure sports like rock climbing can appeal to employees who enjoy being active in nature.

Creating a more expansive definition of fitness is critical to making sure the benefit resonates with all employees, not just those who are already committed to a regular fitness routine.

Aligning Benefits with Employee Preferences: The Key to Success

The most important factor in designing a fitness reimbursement benefit is ensuring that the benefit aligns with what your employees actually want. A program is only successful if employees use it, and the best way to ensure that is to ask them what they need.

Employers should:

  • Survey employees: Conduct surveys to gather input on the types of fitness activities and wellness benefits employees value most. This will provide insights into how the program can be tailored to meet the needs of a diverse workforce.

  • Be open to change: Employee preferences may shift over time. For example, a wellness trend like virtual fitness classes may be popular one year, while outdoor group activities gain traction the next. Be open to revisiting and updating the fitness benefit as needed.

  • Offer choice: The key to a successful fitness reimbursement benefit is choice. By providing employees with multiple ways to engage in fitness—whether it’s through gym memberships, outdoor activities, or mindfulness practices—employers can create a program that appeals to everyone.

Flexibility in fitness benefits ensures that employees feel supported in ways that make sense for them, improving their likelihood of using the benefit and seeing positive results in their physical and mental wellbeing.

Building a Culture of Health and Fitness

Offering a fitness reimbursement benefit is just one part of fostering a culture of health in the workplace. It’s important for employers to lead by example and encourage a healthy, active lifestyle. Here are a few ways to build that culture:

  • Promote movement throughout the day: Encourage employees to take walking meetings, use standing desks, or stretch during breaks.

  • Incorporate fitness into the workday: Host company-wide fitness challenges or participate in charity runs together as a team.

  • Make fitness fun: Offer incentives for participation in wellness programs or organize social activities like a company softball league or after-work fitness class.

The more integrated fitness becomes in the workplace, the more employees will see it as a normal part of their day, rather than an obligation or afterthought.

Tailoring Fitness Benefits for Maximum Impact

A well-designed fitness reimbursement benefit can have a profound impact on employee health, morale, and productivity. But to get the most out of it, employers need to ensure that the benefit is flexible, inclusive, and aligned with what employees actually want. Whether you choose a standalone program or integrate fitness reimbursement into a wellness or flexible spending account, the most important thing is to create a structure that supports a broad definition of fitness.

By thinking outside the box and offering a variety of fitness options, from gym memberships to walking clubs, employers can foster a healthier, more engaged workforce. And by regularly surveying employees and adapting the benefit to their changing needs, companies can ensure that their fitness reimbursement program continues to provide value for years to come.