In addition to general health coverage and a CSA subscription, 37signals employees get a monthly fitness allowance to put toward whatever helps us stay in shape.
What makes this benefit awesome (and effective) is that we get to choose how to make the most of it for ourselves — it’s inspired by the same ethos behind our practice of hiring Managers of One, then leaving people alone and counting on them to do good work. Unlike company wellness programs that include discounted memberships at a particular gym or other specific incentives, the laissez-faire approach trusts employees to decide what works best for them.
While a few of us rarely spend the money or use just part of it, many of us leverage it toward activities that might otherwise by cost-prohibitive: primarily gym memberships, classes and personal trainers. Michael goes to Fulton Fit House in Chicago; Joan belongs to a capoeira group in Portland; and Eron and I are both CrossFit cult members, in Durham, NC, and Austin, TX, respectively. He recently did his first muscle-up!
Andrea uses her stipend toward horseback riding, and Scott puts his toward entry fees for cycling races—when he’s not racing, he uses it to replace stuff that wears out or breaks (tires, tubes, chains, etc.) in the course of training. Other employees use the money for gear as well: Will just bought some weights; Kristin purchased a yoga mat; and Merissa just started tracking her sleep, activity, and diet with Jawbone’s UP band.
Andrea on horseback, Michael at Fulton Fit House, and Kristin in an extended side angle pose. 
Speaking of Merissa, she wins for most inspiring success story: She used the benefit to hire a personal trainer, works out five times per week at a small club near her place, and is now using UP for motivation to be even more active:
Even doing jumping jacks for one minute every hour or so (during my workday) is making a difference. I’ve lost around 70 pounds in the last year. It’s not even about that number, though — it’s about how healthy I am feeling. It’s incredible to work for a company that supports me just as much outside of work as they do at work.
How does your workplace encourage wellness?
GeeIWonder
on 27 Aug 13Activity is great and a personal and corporate strategic interest to be sure. Letting people be active how they want outside office hours is of course the right thing to do, but as you rightly note it is not a given.
Fitness is also a bit about what’s going in the tank and also a bit about e.g. sleep/rest. Does the fitness emphasis discussion ever extend into those conversations? It would seem especially relevant to the support and systems (or whatever you call it these days) teams? If people are trusted outside the office for the activity, are they ENABLED inside the office to cover the other elements? Are there any tips the rest of us could learn to enable our people?
Sandman
on 27 Aug 13You speak of managers of one and leaving people alone, and then in the same breath give them money that they can only spend in a way that you decide (wellness). But what’s wellness? Isn’t anything that people spend money on at all ‘wellness’? I suppose there may or may not be tax breaks for this kind of thing, but why not really let people decide for themselves and just increase their salary by the amount of this wellness benefit?
Matt
on 27 Aug 13You guys never stop inspiring me… thanks.
Emily
on 27 Aug 13@Sandman, people earning a salary still need to work within some constraints (i.e., on projects that further the goals of the company). Same with giving employees money for fitness, and trusting they’ll use it to further their own health goals. In both instances, the parameters are relatively loose, and it’s inspiring how creative people can get within them.
The allowance is specifically for fitness - physical activity - which is a little narrower than wellness. No one is forced to spend the money, but it’s there if we want it. Personally, I probably wouldn’t spend as much on fitness if the benefit didn’t exist but I earned a little more on my paycheck. I’m glad it’s there to provide a little extra motivation and incentive.
Valerie
on 28 Aug 13This is inspirational and timely, as our little company is just now trying to figure out how we can fund employees in ways to inspire ourselves to live healthier. If it’s not too nosey, where can I find further information on how you set this up? From my understanding, these benefits may have tax implications for the employees.
Can you direct me to some getting-started tips?
We’re huge fans, thanks for sharing this info!
Scott
on 28 Aug 13I asked about having this same kind of thing added in our company. It was met with feigned interest. Considering several of us already have gym memberships, others could use one, and some want one but can’t afford it, I thought it would be an awesome perk to offer. We rake in money, have a small company, and great benefits already; this just seemed like a nice little add-on that would benefit everyone.
I wanted to give Cross Fit a shot, but it was out of my monthly budget range for gym membership. If I had an extra amount I could use for it, I would have signed up there rather than a regular gym where I don’t get as much use or benefit.
Olli M
on 28 Aug 13In Finland there is a tax incentive to do a similar thing: a company can give up to 200€/year per person as sports vouchers, which can be redeemed at most sports venues – neither the company nor the employee have to pay any taxes on this money. This program is quite popular, but there have been quite a few people criticising its effectiveness.
The main problem is that the program is the most effective for those who need it the least – people who would exercise anyway use the vouchers, those who don’t like to exercise still don’t.
I’m glad to hear about your success, but I think it is based on more than just the money: it seems you encourage, support and motivate your peers to get fit – it’s this support that’s the key, the money is helpful but only secondary.
Andrea
on 28 Aug 13@Valerie Glad you found Emily’s post so inspiring! To get started yourself, I’d recommend first chatting with your accountant. Benefits work differently at every company, so a professional who’s familiar with how you work can best determine how to structure a fitness benefit for your company. Good luck!
Chris
on 28 Aug 13I tend to agree with Sandman. While you describe the form and structure of this benefit as “laissez-faire”, I’d argue it simply a slightly more relaxed form of paternalism.
While I don’t necessarily begrudge the company for structuring things in this manner, let’s be careful to realize that it is still treating employees a bit like children vs. simply giving them the extra money as salary, it attaches a specific condition to it that fits in the values of the firm’s management.
While Valerie attempts to equate this condition to the conditions a person is under to receive their salary (i.e., doing the things that further the goals of the company) that comparison seems tenuous. This is reaching outside to start speaking into how someone should be spending their time and living their lives.
Mind you, I think the company and management have every right to do it (and employees every right to ignore it or find employment elsewhere if they consider it intrusive in anyway), let’s just call it out for what it really is.
JS
on 28 Aug 13@Chris – You raise an interesting point, though I don’t agree. I can assure you that we are fairly compensated by our salaries. The health benefit is just that—a benefit.
In other circumstances, you would be correct. If 37signals repeatedly bugged me to use my fitness benefit, that would be paternal and troubling. But that’s pretty much the exact opposite of what’s going on here.
Other than letting us know the benefit (along with other benefits, like CSA, insurance and continuing education) is available at the start of each year, it isn’t really mentioned. In fact, I didn’t use my benefit for almost 2 years, and no one paid it any mind.
I don’t know that i would appreciate $X more in my paycheck every month as much as I appreciate knowing that if I want to make an effort to be healthy, my company supports me. I don’t really have to think about the cost that much, if at all. The only effort I have to make is the personal decision to say, “Yes” and get off my bunda.
In addition, it allows me to be more creative with how I spend that benefit. Rather than being locked into joining a gym for a discount, I get to use my benefit to pay for capoeira classes, which I’ve been sadly absent from for a few years.
Anonymous Coward
on 29 Aug 13“In addition, it allows me to be more creative with how I spend that benefit. “
Well I think the point others were making is that it actually doesn’t—more creative than not having the benefit, and more creative than having a more stringent benefit (i.e. gym membership), but outside of that less creative.
Speaking of being creative. I also ‘get’ the difference between wellness and fitness - but I think pretending like there’s some kind of clear line is hardly defensible. I can think of any number of salacious activities that would get the heart rate up and could be considered ‘fitness’ for the sake of applying a benefit. Getting a go-kart membership isn’t -really doing much for your fitness. So it comes down to trust, as it usually does. That’s not a bad thing.
Anyhow I think it’s a good deal and smart business too—and if it increase company morale by making people feel like you care more for them than paying the extra whatever would, that’s great value for money (especially as there may also be tax relief in some places).
Derek
on 29 Aug 13Some people will find anything to complain/debate about.
Emily: Nice post. Thanks for sharing another great thing about 37Signals.
David Friel
on 31 Aug 13Inspirational! At Entrepreneur Handbook were moving to London soon and increasing the team. Definitely considering a similar program for the team as opposed to just Silicon Drinkabout!
Gabe
on 03 Sep 13Great post! For others interested in offering flexible fitness benefits on their workplace, check out spotmefit.com. We let employees get the same type of flexibility described here and handle all of the administration and verification of activities for employers.
This discussion is closed.