'A key reason people don't follow through [with membership] is the personal expense associated with it,' says Co-operators
As Canada battles its largest mental health crisis, there are growing calls among organizations for employers to take charge – by including gym memberships in benefits plans.
After all, research has consistently found that physical activity leads to better mental health, resulting in workplace productivity.
In the current benefits landscape, gym memberships aren’t typically included in benefits plans. Rather, they’re part of a health spending account, explained Holly Fisher, senior manager of group product development and client experience at Co-operators.
“Gym memberships and similar health and wellness items such as yoga or Pilates are a common benefit claimed under a wellness spending account,” she explained.
Health or wellness spending accounts are separate from traditional benefits plans where the employer allocates a set amount or percentage of dollars to a plan member. They can then use this dedicated amount for whatever they choose as their wellness perk.
While employee wellness is becoming a top priority for many workplaces, should gym memberships be part of that equation? Fisher highlighted more than one in three plan sponsors now provide flexibility in their plans, like offering gym memberships, often through healthcare spending accounts or wellness accounts.
According to a recent Co-operators survey, the number one change employers are considering is increasing or adding to their health and wellness spending accounts.
However, Fisher highlighted gym memberships don’t typically fit into traditional benefits plans due to Canadian tax regulations.
“When we're looking at what's included in a benefits plan, it has to adhere to CRA guidelines to be considered a non-taxable benefit, which is why gym memberships are offered outside of a traditional, extended health and dental plan,” she explained.
“When an employer offers an employee a wellness spending account, they have the freedom to direct those funds to eligible wellness benefits, such as a gym membership,” she added.
Beyond tax considerations, the push for fitness benefits is driven by employee demand.
“Up to 93 per cent of plan members are looking to make at least one lifestyle change to improve their overall health, with the top desired change being increased exercise,” Fisher said, pointing to a recent healthcare survey. Still, cost remains a barrier.
“A key reason people don’t follow through [with membership] is the personal expense associated with it,” she added.
The question is whether subsidizing gym memberships is a worthwhile investment for employers or an unnecessary expense.
Not all employers are convinced as some opt for alternative wellness initiatives before committing to gym subsidies. Tammy Brazier, senior vice president of marketing, partnerships & external relations at GoodLife explained that many businesses take a phased approach.
“Some companies start with more high-touch, all-inclusive programming, like workshops on nutrition or sleep, group fitness classes, or on-site wellness perks,” she said, while others move toward gym memberships only after gauging employee interest.
For companies looking to provide fitness perks without covering the full cost, GoodLife offers an alternative model.
“Employers don’t have to subsidize memberships,” Brazier said. “We provide a 10 to 25 per cent discount on membership rates without the company having to pay for it directly.”
The reason is to remove barriers like cost and intimidation, making it easier for employees to prioritize fitness, Brazier added. That said, she argued the broader business case for offering gym benefits.
“It’s become part of workplace culture and gives companies a competitive advantage,” she said, emphasizing that employee retention, engagement, and productivity all tie into well-being.
“People are more in tune with their health and wellbeing so it's really not a nice to have, it's become table stakes for most companies,” she said. “The barrier that keeps some companies from going forward is the perceived investment of dollars and what is the return. We have to change the narrative on that a little bit. The dollars can be as little or as much as they want, they're very customizable.”
Brazier was quick to highlight GoodLife’s success, who’ve seen significant growth in corporate partnerships since launching its workplace wellness program in 2007.
“The success rate has been fantastic. It’s more than quadrupled in size,” Brazier said. And while ROI is often a concern for employers, she believes the focus should shift.
“Rather than return on investment, we think about things like associate engagement, retention, and productivity. Things that signal a positive work culture.”
The case for subsidizing gym memberships goes beyond employee satisfaction as Fisher emphasized the preventive health benefits, noting that companies are shifting from reactive to proactive approaches.
“The more we can support employees to stay healthy with things like gym memberships, the more we contribute to employee resilience and financial security,” she said.
