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BSB51915 Diploma of

Leadership and Management


BSBMKG520
Plan and manage the flexible workforce
Task 2

Business College at International House


RTO Code: 91109 CRICOS 02623G
Level 1, 203 Clarence St, Sydney NSW 2000 | Floor 1, 237 Oxford St, Bondi Junction NSW 2022
3 Searcy St, Darwin NT 0800 | Level 6, 601 Bourke St, Melbourne VIC 3000
info@ihBC.edu.au| www.ihBC.edu.au
Questioning Assessment

Candidate Instructions

You will complete questions for purposes of formal assessment as per the questions outlined in the questioning record below,
and any additional probing or clarification questions required by the assessor.
The Knowledge Activity is designed to confirm your competency for all the required knowledge in the unit of competency.

Task Details

There is no restriction on the length of the question responses, or time restriction in completing the assessment.

It is anticipated that the assessment will take approximately 6 hours to complete.

The assessment may be re-attempted on two further occasions (maximum three attempts in total). All assessments must be
resubmitted 3 days within receiving your unsatisfactory grade. You must clearly indicate “Re-submission” on your
resubmitted work.

You must complete all questions unassisted by the assessor or other personnel but may refer to reference material as may be
needed.

All questions must be answered satisfactorily for the assessment to be completed satisfactorily.
For any assessment conducted that is incomplete, or without satisfactory performance, the assessment will need to be
completed again after further training support. This may be simply to focus on question areas not achieved in the prior
assessment.

Evidence to be collected

Answer the activity in as much detail as possible, considering your organizational requirements.

In undertaking this assessment task, you as the candidate are providing consent for your work to be reviewed for the purposes
of formal assessment in the unit(s) of competency. If you have concern regarding this permission, please discuss this with your
assessor prior to undertaking the task.

To provide you with an opportunity to show you have the required knowledge
Objective
for this unit.

Candidate Declaration

Candidate name: Fernando Alves Nogueira

Trainer’s name: Zak Zreikat

Business College at International House


RTO Code: 91109 CRICOS 02623G
Level 1, 203 Clarence St, Sydney NSW 2000 | Floor 1, 237 Oxford St, Bondi Junction NSW 2022
3 Searcy St, Darwin NT 0800 | Level 6, 601 Bourke St, Melbourne VIC 3000
info@ihBC.edu.au| www.ihBC.edu.au
Date: 25th August 2019
Assessment declaration: I declare that no part of this assessment has been copied from another
person’s work, except where clearly noted on documents or work submitted.
I declare that no part of this assessment has been written for me by another
person. I understand that plagiarism is a serious offence that may lead to
disciplinary action.

Candidate signature:

Your trainer and assessor will be grading your work and provide you with constructive feedback
on the Learning Management system.

Business College at International House


RTO Code: 91109 CRICOS 02623G
Level 1, 203 Clarence St, Sydney NSW 2000 | Floor 1, 237 Oxford St, Bondi Junction NSW 2022
3 Searcy St, Darwin NT 0800 | Level 6, 601 Bourke St, Melbourne VIC 3000
info@ihBC.edu.au| www.ihBC.edu.au
Task 2 – Performance and Skills Assessment

General instructions
Scenario
Bounce Fitness is a chain of fitness centres with centres in Sydney, Brisbane, Melbourne and
Perth. Starting with only 4 centres in 2012, Bounce Fitness has grown to over 20 centres and
is planning to continue growing by 1 – 2 centres per year over the next 5 years.
Each centre is staffed by the following:
 A full time manager
 A part time administrative assistant
 2 – 3 casual personal trainers
 Casual staff who deliver specific classes such as yoga, pump, cross fit, circuit training
and other classes
As well as growth in the number of centres, membership numbers within each centre is also
growing. The international market research company IBISWorld predicts that fitness centre
revenues will grow at an annualised 1.8% over the half decade through to 2022/23.
In order to better manage the mix of work arrangements, Margaret, the CEO has asked you
to put in place the processes to effectively manage flexible workforce arrangements as part
of your role as HR manager.

Part A – Flexible Work Arrangements Business Case


Margaret has asked that you firstly prepare a preliminary report to provide her with an
overview of flexible work arrangements in general industry and also, more specifically how it
relates to Bounce Fitness. You will then use this business case to inform the organisation’s
policy and procedures relating to flexible working arrangements.

Your report will include the following headings:


 Executive Summary
 Overview of Flexible Work Arrangements
 Potential Benefits
 Future Workforce Requirements
 Management and Staff Capability Requirements
 Possible Issues

Business College at International House


RTO Code: 91109 CRICOS 02623G
Level 1, 203 Clarence St, Sydney NSW 2000 | Floor 1, 237 Oxford St, Bondi Junction NSW 2022
3 Searcy St, Darwin NT 0800 | Level 6, 601 Bourke St, Melbourne VIC 3000
info@ihBC.edu.au| www.ihBC.edu.au
Use the spaces provided below. Prepare a professional report suitable for presenting to the
CEO.

1. Executive Summary (100 words)


Write an executive summary which aligns to the content of your report (this is
completed after the body of the report is written).

This report gives a review of adaptable work plans when all is said in done industry
and how it identifies with Bounce Fitness. For this reason, data will be given by the
Fairwork Australia government site will be utilized, alongside the association's
approach and systems identifying with adaptable working plans. It likewise will be
given an outline of the adaptable workforce and the conceivable adaptable game
plans and its advantages for Bounce Fitness. Furthermore, taking into account that,
The global statistical surveying organization IBISWorld predicts that wellness focus
incomes will develop at an annualized 1.8% over the half decade through to 2022/23,
this report recommends a Bounce Fitness workforce strengthening and raises
potential issues that may occur.

2. Overview of the Flexible Workforce (100 words)


Provide an overview of the flexible workforce and describe each of the following
flexible arrangements.
 Part time employees
 Casual staff and contractors
 Offsite employees (telecommuters)
 Volunteers
Also describe the labour market trends in flexible workforces.

Flexible workforce allows employers and employees to make arrangements about working
conditions that suit them. Employers and employees can negotiate ways to make their
workplace more flexible. Some flexible arrangements are the followings:

 Part time employees: work fewer hours than full-time employees. These employees
are covered by the same legislation as full-time employees and receive the same
entitlements but on a pro-rata basis.
Business College at International House
RTO Code: 91109 CRICOS 02623G
Level 1, 203 Clarence St, Sydney NSW 2000 | Floor 1, 237 Oxford St, Bondi Junction NSW 2022
3 Searcy St, Darwin NT 0800 | Level 6, 601 Bourke St, Melbourne VIC 3000
info@ihBC.edu.au| www.ihBC.edu.au
 Casual staff and contractors: They don’t have a firm commitment in advance from an
employer about how long they will be employed for, or the day/hours they will work.
This means for instance that the roaster could change every week.
 Offsite employees: This flexible arrangement means that employees work in a
different place than office. One example could be home-based work arrangements,
which enable employees to spend part or all of their working time at home, on a
temporary or permanent basis.
 Volunteers: Those who work for the main purpose of benefiting someone else. They
are not employees and therefore they are not paid.

3. Potential Benefits (40 words)


Describe at least 3 benefits of flexible workforces and how these benefits relate to
Bounce Fitness.

1. Increased creativity

Happy, motivated employees - those who are enthusiastic at the Gym, they are likely
to be grateful for flexible working hours, and may be more inclined to engage with
Bounce Fitness and make a valuable contribution.

2. Improved well-being

Employee well-being is a key concern for many managers across Bounce Fitness, and
rightly so. Taking steps to encourage employees to have passion and enthusiasm for
the job can be critical to retain top talent. Offering flexible working to employees can
boost morale and improve their physical and mental well-being.

When staff members enjoy flexible work arrangements, they are likely to be less tired
and better rested, reducing the risks of fatigue, burnout and stress.

3. Increased operating hours without increased wage costs


If we have staffs more flexible, the Gym will be open more hours per day, have a
chance to make more money.

4. Future Workforce Requirements (60 words)


Describe the likely workforce requirements for Bounce Fitness to achieve its goals for
memberships and growth. You will also need to consider fitness industry trends.

Business College at International House


RTO Code: 91109 CRICOS 02623G
Level 1, 203 Clarence St, Sydney NSW 2000 | Floor 1, 237 Oxford St, Bondi Junction NSW 2022
3 Searcy St, Darwin NT 0800 | Level 6, 601 Bourke St, Melbourne VIC 3000
info@ihBC.edu.au| www.ihBC.edu.au
You can refer to Appendix 1 - the Fitness Industry Employment Trends and Appendix
2 – Group Fitness Model and conduct your own research if necessary.

As indicated by the objectives set by Bounce Fitness as far as participation and


development, there are significant patterns to be considered. Some of them are
identified with specific abilities required by staff individuals because of industry slants,
some others in regards to the quantity of staff required and the most reasonable
legally binding figure on the grounds of those necessities.

On a time span of 3-4 years Bounce Fitness should employ more Fitness Instructors,
Sport Coaches and Instructors because of the expanding Fitness market request on
these expert administrations. What's more, is worth to make reference to that the
quantity of experts in these occupations is anticipated to increment as well and hence
there will be no hole among offer and request.

With respect to the Bounce Fitness enrollment development objective, the business
needs to consider the business pattern, which is more gathering classes. conventional
huge box rec centers have backed off in their development. The International Health,
Racquet and Sportsclub Association (IHRSA) found that from 2012 to 2015,
participations in customary wellness clubs developed by just 5%, while the littler claim
to fame studios jumped by over 74%.

5. Management and Staff Capabilities (60 words)


Describe the skills and knowledge and capabilities managers and staff will require to
enable flexible workforce arrangements.

For the whole group, It is imperative to have the option to examine the effect that
work plans can have on the association and on business results. Dialogs ought to
likewise incorporate effects on people – assurance, family and way of life needs and
monetary security. Administrators should almost certainly talk about a person's
presentation record, work style, individual reasonableness for explicit adaptable
working alternatives, and suitable home courses of action and life cycle changes which
effect on adjusting work and individual life. A couple of significant aptitudes are viable
correspondence; input; understanding worker's 'entire lives'.

Business College at International House


RTO Code: 91109 CRICOS 02623G
Level 1, 203 Clarence St, Sydney NSW 2000 | Floor 1, 237 Oxford St, Bondi Junction NSW 2022
3 Searcy St, Darwin NT 0800 | Level 6, 601 Bourke St, Melbourne VIC 3000
info@ihBC.edu.au| www.ihBC.edu.au
6. Possible Issues (40 words)
Outline at least 3 issues related to flexible workforce arrangements and at least 1
strategy to deal with each issue.

 Arranging meetings with employees working part-time or flexible hours;


 Managing performance fairly across full-time and part-time employees;
 Building the company’s culture when not all employees work together all the
time.
Managers may need to address the issue of the heightening of work. Utilizing the
framework Monitoring and Reviewing, where you can apply numerous instruments,
for example, time recording, advance reports, ordinary interchanges and the
innovation connected to those devices. Likewise, late propels in advanced innovations
can add to work escalation. For instance, low maintenance staff may as often as
possible browse their messages or answer work telephone approaches non-work days.

Business College at International House


RTO Code: 91109 CRICOS 02623G
Level 1, 203 Clarence St, Sydney NSW 2000 | Floor 1, 237 Oxford St, Bondi Junction NSW 2022
3 Searcy St, Darwin NT 0800 | Level 6, 601 Bourke St, Melbourne VIC 3000
info@ihBC.edu.au| www.ihBC.edu.au
Part B –Flexible Workforce Arrangements and Policy
7. Prepare an individual flexibility agreement for the personal trainers. Consider the
following:
a) Members generally book training sessions between the hours of 9 am and 11
am and 4 pm and 8 pm. Other sessions outside these hours can be booked by
agreement with trainers.
b) Group classes run Mondays to Thursdays between 12 pm and 12.45 pm and
6.30 pm to 7.30 pm
c) Personal trainers will be paid for the hours they spend training members or
delivering group classes only
d) Personal trainers are not required to be on-site if there are no sessions or
classes booked. However, they can use the personal trainer office.
e) Preparations for sessions and group classes are done in the trainers own time
and it is the trainer’s responsibility to leave the group training room clean and
tidy after use
f) Pay rate is $55 per hour
g) Personal trainers have full access to all gym facilities for personal use

Personal Trainer Work Agreement

Name: Fernando Nogueira

Date: 26 September 2019

Duties: Training sessions, group classes

Hours: 8am- 11am; 1pm-3pm – 5pm-6pm

Use of Facilities: All Gym facilities, including Personal Trainers office

Responsibilities of Payment to Trainers, Marketing, follow the laws imposed by the Australian
Bounce Fitness: Government, provide classe’s place.

Responsibilities of Preparing sessions and group classes, leaving training room clean
Staff Member: and tidy

Pay: $55 per hour.

Signatures: Bounce Fitness Manager Personal Trainer

Business College at International House


RTO Code: 91109 CRICOS 02623G
Level 1, 203 Clarence St, Sydney NSW 2000 | Floor 1, 237 Oxford St, Bondi Junction NSW 2022
3 Searcy St, Darwin NT 0800 | Level 6, 601 Bourke St, Melbourne VIC 3000
info@ihBC.edu.au| www.ihBC.edu.au
8. Prepare a policy describing how centre managers can maintain team
communications, cohesion, cooperation and performance. This policy will be
circulated to all centre managers to help them manage the flexible working
arrangements of their staff and maintain high standards of service and performance.
Use the following template and include the following in your policy.
a) Purpose of the policy
b) A description of the flexible working arrangements
c) A communications strategy to help centre managers maintain team
communications, cohesion, cooperation and performance. Include examples
of how you can do this in a face to face situation and how this can be done
using technology. Describe how this will be done and how often. Provide one
example of how you would accommodate staff who cannot attend meetings
through the use of technology.
d) A description of the enabling technology that centre managers can use to
maintain communications with staff and help in managing staff in flexible
work arrangements.
e) Responsibilities of staff in responding to and initiating communications and
general workplace duties.
f) A description of how performance management will be undertaken.
g) A description of coaching services that will be available for centre managers
and for centre staff.

Flexible Workplace Policy

Purpose of the This policy has of purpose to ensure that employees and managers are aware
Policy of the range of Flexible Working Arrangements available at Bounce Fitness,
maintain team communications, cohesion, cooperation and performance and
understand the roles and responsibilities of each person involved in the
application and approval process.

Flexible Working  Part time


Arrangements
 Casual staff

Staff Managers need to be able to discuss an individual’s performance


Communications record, work style, personal suitability for specific flexible working
options, and appropriate home arrangements and life cycle
changes which impact on balancing work and personal life. A few
important skills are effective communication; feedback;
understanding employee`s `whole lives`. And with the use of
technology, communication becomes easier, since everyone has
Business College at International House
RTO Code: 91109 CRICOS 02623G
Level 1, 203 Clarence St, Sydney NSW 2000 | Floor 1, 237 Oxford St, Bondi Junction NSW 2022
3 Searcy St, Darwin NT 0800 | Level 6, 601 Bourke St, Melbourne VIC 3000
info@ihBC.edu.au| www.ihBC.edu.au
access to a mobile phone and the internet. Therefore, calls,
messages, emails and video calls can be made daily. In addition to
allowing employees to attend remote meetings, through video
calls.

Enabling Will be available to have communication among manager and


Technology staff through email, intranet, video calls, social media.

Staff Representatives are in charge of: Identifying individual needs and


Responsibilities potential arrangements, and being sensible about what is
conceivable; Taking duty regarding conveying their own
remaining task at hand as concurred with their director;
Reporting any work environment episodes, wounds or sicknesses
that happen while undertaking Flexible Working Arrangements;
Reporting any potential risks that may exist in the Home Working
Arrangements condition as it changes now and again; Ensuring
that any Home Working Arrangements conform to all Bounce
Fitness strategies and methodology including Corporate Security
and satisfactory use rules.

Performance Performance the executives will be embraced intensive an


Management unmistakable expected set of responsibilities, investigating it
normally with staff, making all staff take an interest on an
acceptance program when they become some portion of Bounce
Fitness and utilizing channels stablished by the association to
address issues on schedule (gatherings, messages, video calls).

Staff Coaching Bounce Fitness will have coaching services available from a certain period of
time for managers and staff and also mentoring sessions available.

Prepared by Fernando Nogueira

Date: 26 September 2019

Part C – Managing Flexible Workforce Arrangements

Business College at International House


RTO Code: 91109 CRICOS 02623G
Level 1, 203 Clarence St, Sydney NSW 2000 | Floor 1, 237 Oxford St, Bondi Junction NSW 2022
3 Searcy St, Darwin NT 0800 | Level 6, 601 Bourke St, Melbourne VIC 3000
info@ihBC.edu.au| www.ihBC.edu.au
9. Jim, the manager at the Melbourne city centre has made a request to HR to reduce
work hours to a 0.8 time fraction. Accepting this request would potentially pose
problems for the running of the centre.
a) Under what circumstances can an employee make this request? (80 words)

If he have being with us for more than 12 months and if he fit in one of the following:
- are the parent, or have responsibility for the care, of a child who is school aged
or younger
- are a carer (under the Carer Recognition Act 2010)
- have a disability
- are 55 or older
- are experiencing family or domestic violence, or
provide care or support to a member of their household or immediate family who
requires care and support because of family or domestic violence.

b) Suggest 3 options for dealing with this request, with one option being to
refuse the request. (80 words)

- Accept the request;


- Refuse the request;
- Compensate the hours working from home.

c) Select the best approach. Assume you have discussed this with Jim and that
he has agreed. Draft a written response to Jim informing him in writing of the
agreed work arrangement. (80words)

Dear Jim,
As discussed previously, to your position requires to work full time because of your
responsibilities. But due to your special case, we will be happy to make your hours
flexible by allowing one day of your service to be performed remotely. In that way you
will not need to be present at the service location.
Thank You.
Best Regards,

Business College at International House


RTO Code: 91109 CRICOS 02623G
Level 1, 203 Clarence St, Sydney NSW 2000 | Floor 1, 237 Oxford St, Bondi Junction NSW 2022
3 Searcy St, Darwin NT 0800 | Level 6, 601 Bourke St, Melbourne VIC 3000
info@ihBC.edu.au| www.ihBC.edu.au
10. You have recently received a request from a part time admin assistant in the Brisbane
centre. The request is as follows:
“My child care arrangements have changed and I now need to work Monday,
Tuesday and Wednesday, instead of Monday, Thursday and Friday”.
You are happy to agree to the request. The only issue is that there is a team meeting
on Fridays. Provide a written response for the employee approving the request,
confirming the revised days and a suggestion for accommodating the team meeting.

Your request has been accepted, and we at Bounce Fitness are happy to support our
employees. But as you know, we have a team meeting every Friday. That is why we ask
you to book Friday hours to attend the meeting by Skype. This time will be paid based
on your normal rate.

11. Jan, the marketing manager in head office has an exceptionally long commute and
has requested a telecommuting arrangement for two days a week to save time and
reduce the stress of peak time travel. A proposal which includes an analysis of the
amount of time spent on face-to-face tasks and individual-based tasks has been
undertaken. A convincing argument has been made that a telecommuting
arrangement would enable all tasks to be effectively undertaken, while also
improving work-life balance and well-being.
Jan’s request has been approved. Describe what technology Jan will require to work
from home. (60 words)

As a marketing manager, Jan needs to a brand new notebook including camera and
microphone to communicate and delivery message to all employees. An Smartphone
could be helpful as well and also, an high speed internet, providing a good
communication between everyone.

12. Describe how you will advise centre managers to monitor and review the flexible
workforce arrangements. (60 words)

I will use the time recording to help to control the time. I will use progress reports and
Business College at International House
RTO Code: 91109 CRICOS 02623G
Level 1, 203 Clarence St, Sydney NSW 2000 | Floor 1, 237 Oxford St, Bondi Junction NSW 2022
3 Searcy St, Darwin NT 0800 | Level 6, 601 Bourke St, Melbourne VIC 3000
info@ihBC.edu.au| www.ihBC.edu.au
regular communications to Keeping track their development during the job. First step
in the beginning of the day “huddles” to make clear the goals of the day and
constantly get feedback from staffs with a form. And I will use the technology to help
me.

13. Describe how you can support staff with flexible work arrangements by answering
the following:
a) Describe 3 ways that you can create a culture within Bounce Fitness that
supports the flexible workforce. (60 words)

Regular workshops for trainers


Have a uniform for all trainers
Social events for staff
Intranet: articles, content about Bounce Fitness culture
Policies
Awards

b) Describe 3 ways that you can ensure part time and casual staff feel a part of
the team they work with and with the overall Bounce Fitness organisation (60
words)

Social events
Conferences
Uniform

c) Describe 3 ways you can prevent discrimination against staff with flexible
work arrangements (60 words)

Have flexible role model. Recognizing they are doing a good job despite of working in a
flexible way

Business College at International House


RTO Code: 91109 CRICOS 02623G
Level 1, 203 Clarence St, Sydney NSW 2000 | Floor 1, 237 Oxford St, Bondi Junction NSW 2022
3 Searcy St, Darwin NT 0800 | Level 6, 601 Bourke St, Melbourne VIC 3000
info@ihBC.edu.au| www.ihBC.edu.au
Make it as normal as possible, which means integrating all employees
Manage issues quickly
Flexible work arrangements Policy has to be clear

14. One of the issues with flexible work arrangements, especially where there is a large
number of casual staff such as personal trainers relates to the protection of
corporate knowledge and information and intellectual property. Draft a clause that
can be included in employment contracts and work plans that address the following:
a) Privacy of members’ information (60 words)

The mindful recognizes that the person in question has turned out to be mindful of
Bounce Fitness' private data, which can and ought to be viewed as an industry or
business mystery. These Such data will be dealt with privately under any conditions
and may not be unveiled unapproved outsiders, including workers of Bounce Fitness
and mindful, without the express composed assent of the legitimate agent consenting
to the Arrangement.

b) Intellectual Property (60 words)

Bob Fitness Personal Trainers comprehend and concur that any protected innovation
created or made for individuals, for example, new preparing plans, works out,
nourishment plans, among numerous others, they all have a place with Bounce Fitness

15. List the questions that you would ask in a feedback form that centre managers can
use to obtain staff’s views on the flexible working arrangements. Your feedback form
should include at least 8 questions that address the following:
 Access to required tools
 Communications with manager and team members
 Feeling part of the team and organisation
 Support from the organisation
 Benefits to them and the organisation
 Productivity improvements
 Any issues
Business College at International House
RTO Code: 91109 CRICOS 02623G
Level 1, 203 Clarence St, Sydney NSW 2000 | Floor 1, 237 Oxford St, Bondi Junction NSW 2022
3 Searcy St, Darwin NT 0800 | Level 6, 601 Bourke St, Melbourne VIC 3000
info@ihBC.edu.au| www.ihBC.edu.au
 Are you feeling part of the team and organization?
 Do you have easy access to the tools required during the job?
 How is your communication with manager and team members?
 Do you consider yourself someone who brings benefits to the
organization?
 Do you have any suggestions for improve the organization?
 Did you have any issues with the organization?
 Are you receiving all the necessary support from the organization?
 Do you consider the organization beneficial to you?

End of Assessment.

Congratulations, you have completed this assessment task.

Please ensure all questions are answered and upload the following:
 This completed workbook

Business College at International House


RTO Code: 91109 CRICOS 02623G
Level 1, 203 Clarence St, Sydney NSW 2000 | Floor 1, 237 Oxford St, Bondi Junction NSW 2022
3 Searcy St, Darwin NT 0800 | Level 6, 601 Bourke St, Melbourne VIC 3000
info@ihBC.edu.au| www.ihBC.edu.au
Appendix 1 – Fitness Industry Snapshot
The employment level in the Sport and Physical Recreation industry has risen
substantially over the period between 2000 and 2018, with a further increase projected up
until 2023. The Amusement and Other Recreation Activities industry has also seen a rise in
employment levels over the same period and a further increase is predicted over the next
five years.
Fitness Instructors make up 9% of the Sport and Recreation Activities industry workforce
(excluding Horse and Dog Racing Activties) and Sports Coaches, Instructors and Officials
make up 16%. Employment levels in these occupations are projected to further increase
between 2018 and 2023, by 18.4% and 20.1% respectively.
From Australian Industry and Skills Committee – Dec 2018
https://nationalindustryinsights.aisc.net.au/industries/sport-fitness-and-recreation/fitness

Business College at International House


RTO Code: 91109 CRICOS 02623G
Level 1, 203 Clarence St, Sydney NSW 2000 | Floor 1, 237 Oxford St, Bondi Junction NSW 2022
3 Searcy St, Darwin NT 0800 | Level 6, 601 Bourke St, Melbourne VIC 3000
info@ihBC.edu.au| www.ihBC.edu.au
Appendix 2 – Group Fitness Model
This sector has experienced an explosion in growth over the last number of years. There is no
exact birthdate for these types of fitness businesses, but the big players in the game came to
prominence in the early 2000s with the likes of Equinox and Soulcycle establishing a new type of
fitness experience.
As a result, the more traditional big box gyms have slowed down in their growth. The
International Health, Racquet and Sportsclub Association (IHRSA), a leading trade organization,
talks about this trend in a recent report. They found that from 2012 to 2015, memberships in
traditional fitness clubs grew by just 5%, while the smaller specialty studios jumped by over 74%.
This trend has been driven primarily by the Gen Z and Millennial generation, with a report by the
IHRSA stating that the 18 to 25-year-old generation are more likely to attend fitness studios than
other age groups. It also found that the higher age bracket of 35 to 54-year-olds were more likely
to attend traditional fitness facilities.
There are plenty of reasons for this. The younger generation is looking for a more engaged
fitness experience centered around three main pillars.
 Community: Group classes bringing together people who have similar fitness
goals
 Consistency: Boutique and group studios are providing quality workout
programs on a regular basis that deliver real results for their members
 Constraint: Classes are limited in their attendance which eliminates the
overcrowding experienced in big box fitness centers
What is interesting about this part of the fitness industry is its high retention rates compared to
the big box gyms. The Association of Fitness Studios says that the retention rate among fitness
studios sits at 75.9% and this number has been consistent since 2016. Meanwhile, the retention
rate of more traditional health clubs has sat at around 71.4%.
In the past number of years, there have been more and more studies that back up the theory
that running group classes in your studio delivers a higher rate of retention. Recently, a Nielsen
study of more than 3,000 participants of group fitness classes around the world highlighted that
more than 85% of class members visit their facility twice a week specifically to engage in group
classes. And 43% of members visit their facility four times per week for this purpose.
Another really interesting study was conducted by Dr. Jinger Gottschall of Penn State University.
Reviewing the impact of group fitness on exercises, the study examines a group of 25 adults
between 25 and 40 who did not exercise regularly. The group contained 15 women and 10 men
and they had to complete a 30-week group exercise program.
Business College at International House
RTO Code: 91109 CRICOS 02623G
Level 1, 203 Clarence St, Sydney NSW 2000 | Floor 1, 237 Oxford St, Bondi Junction NSW 2022
3 Searcy St, Darwin NT 0800 | Level 6, 601 Bourke St, Melbourne VIC 3000
info@ihBC.edu.au| www.ihBC.edu.au
During the study, the intensity and regularity of the workouts increased every couple of weeks.
On top of the improved fitness levels of the members, the study produced an astonishing result.
There was a completion rate of 98.8%, meaning the subjects completed the majority of the
classes they signed up for, something that has been unheard of in previous fitness studies.
So it’s clear that group fitness is driving higher retention rate for members. In the next section of
this article, we look at member retention reports that deal with engagement and how it impacts
the retention of members.
From Glofox blog article - The Gym Membership Retention Statistics Worth Retaining in 2019
https://www.glofox.com/blog/the-gym-membership-retention-statistics-worth-retaining-in-
2019/

Business College at International House


RTO Code: 91109 CRICOS 02623G
Level 1, 203 Clarence St, Sydney NSW 2000 | Floor 1, 237 Oxford St, Bondi Junction NSW 2022
3 Searcy St, Darwin NT 0800 | Level 6, 601 Bourke St, Melbourne VIC 3000
info@ihBC.edu.au| www.ihBC.edu.au

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