How to solve staff retention in fitness studios and gyms

62% of fitness studios across America find it challenging to recruit and retain qualified staff. When staff wages are the largest expense (along with equipment depreciation and administrative costs), this is no small challenge. Rising operational costs force owners into a precarious balancing act: cutting corners risks losing both staff and clients.

But with an unparalleled 80% annual trainer turnover rate, the fitness industry is far behind other industries when it comes to retention. However, this represents an opportunity for the savvy franchise owner: those who nail retention can pull far ahead of their competitors. 

The tension between gym profitability and fair compensation

Many trainers cite exploitative pay structures as a key driver of turnover. In some cases, only 25% of the income goes to the trainer, while 75% goes to the gym for PT. In America, the median annual wage for fitness trainers and instructors was $46,480 in May 2023, or $22.35 per hour.  The lowest 10 percent earned less than $26,840, and the highest 10 percent earned more than $80,740. New trainers may not make enough to pay their bills for the first several months. 

However, for the fitness studio, staff wages represent 44% of the total revenue in the fitness studio industry. In a hyper-competitive environment, fitness businesses may be tempted to focus on short-term profits over long-term staff investment. However, cutting staff wages is the quickest way to be cut out of the race entirely. 

“(One of the biggest challenges is) identifying and keeping fitness professionals with the necessary training to provide interesting and high-quality in-person and online fitness experiences.”

– Fitness studio owner, 41, California

‘Most commercial gyms don’t pay exceptionally well,’ notes a veteran trainer in California. ‘The good trainers leave for better opportunities, and you’re stuck in a cycle of hiring inexperienced people who can’t build a client base.’

This sentiment reflects systemic flaws driving the industry’s unparalleled 80% annual trainer turnover rate. Trainers at these gyms sometimes face a double bind: they lack autonomy to build fulfilling careers, yet may be pressured to sell sessions to survive on meager commissions. Many ultimately leave to find greener pastures.

This bad news for the franchise - retaining quality staff members is crucial for the member experience. As members look for a personalized experience, fitness studios are looking to employ more personal coaches and diversify their offerings, increasing the need to hire more coaches with differing skill sets.

“As prices rise and staff salaries increase, the operating costs of gyms are getting higher. How to control expenses while still providing quality services and facilities makes me need to consider the future outlook.”

– Fitness studio owner, 30, South Carolina

Best strategies for staff retention in fitness studios and gyms

Provide employee benefits 

The industry standards of fitness businesses, studios and gyms lag far behind other industry standards, impacting retention rates. 

Take the hotel industry. They’re very similar:

• Both industries face frequent staff churn due to seasonal demand, irregular hours, and physically/emotionally demanding roles.
• Staff in both sectors must maintain high energy levels and personalize experiences to retain clients/members.
• Entry-level roles (e.g., front-desk staff, servers, trainers) might sometimes rely on tips,  bonuses, or commissions, creating income instability.
• Long shifts, weekend work, and repetitive tasks can lead to attrition.

However, hospitality has many more strategies and structures in place to reduce staff turnover. 

They focus on employee recognition programs - like the classic “Employee of the Month”. Hotel chains invest in cross-training (e.g., front-desk staff learning basic skills) to build versatility. Resorts often know how to nail staff perks, like free meals and wellness stipends, to offset lower wages. Hilton offers tuition reimbursement; Hyatt employees can book 12 complimentary room nights per year at any Hyatt hotel in the world. 

When it comes to retention in the fitness industry, even small perks matter:

• Free memberships for trainers’ families.
• Paid rest days post-marathon training cycles.
• Career development budgets for certifications like NASM or ACE.

Make sure you also have the benefits that are standard in the rest of corporate America: 401(k)s, health insurance, and regular feedback loops - like quarterly check-ins, which help retain up to 40% more staff.

Bring back on-the-job training

Training on the job used to be a given before the internet. Companies would run an ad in the local paper - and when you’re bound by geography, you will rarely find anyone with your exact requirements for the job. So for most of human history, it was the norm to hire a person and then teach them how to do the job. 

However, in the last thirty years this has completely shifted and we've seen a disappearance in on-the-job training. With a globalised workforce, companies hire for specific skills, and expect employees to hit the ground running. This experiment is not working out well in every sector - and fitness industries are far too specific to each studio to ignore employee training.

The studios who are winning the race are figuring this out. For example, Equinox offers education and formal assessments. In partnership with Lionel University, new trainers undertake a certification program for new trainers, fully funded by the company. Post-certification, coaches enter the Equinox Fitness Training Institute for ongoing development.

Improve staff retention and revenue with Hapana

A little staff turnover is healthy, but high staff turnover means your business is not running as efficiently as it could. Your staff are the canary in the coal mine, the key signal of business health. 

At Hapana, we take the hassle out of admin and the mystery out of operations and scheduling - so your staff can focus on meeting the needs of your members without any extra headaches.

Book a tour of the software with our friendly team to see how a cutting-edge platform can take your business to the next level.