Successful personal training businesses can range from the small solo operator who works part time to a company with hundreds of employees. Jennifer Brilliant, the personal trainer in Brooklyn, has six teachers and trainers who work with her as independent contractors. “They work other places and do other things as well,” she says. Many other trainers work alone. Whatever size of company you aspire to have, it’s a good idea for you to understand the human resources aspect of owning a business.
The first step in formulating a comprehensive human resources program is to decide exactly what you want each of your employees to do. The job description doesn’t have to be as formal as you might expect for a large corporation, but it needs to clearly outline the person’s duties and responsibilities. It should also list any special skills or other required credentials (such as specific certifications or education requirements, or a valid driver’s license and clean driving record) for someone who is going to work for your particular type of business.
Next, you need to establish a pay scale. Typically, the personal trainers you hire will get a percentage of what the client pays. Administrative staff should be paid according to the going rate in your area for those particular skills.
You’ll also need a job application form. You can get a basic form at most office supply stores, or you can create your own. In any case, have your attorney review the form you’ll be using for compliance with the most current employment laws.
Every prospective employee should fill out an application—even if it’s someone you know, and even if they have submitted a detailed resume. A resume is not a signed, sworn statement acknowledging that you can fire them if they lie; an application is. The application will also help you verify their resume; compare the two and make sure the information is consistent.
Now you’re ready to start looking for candidates.
Picture the ideal candidate in your mind. Is this person likely to be unemployed and reading the classified ads? It’s possible, but you’ll probably improve your chances for a successful hire if you are more creative in your search technique than simply writing a “help wanted” ad.
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Always be on the lookout for new trainers and other employees, even when you don’t have a specific opening. Keep resumes and applications of qualified people on file so you have a ready resource in the event of an unexpected staffing need.
Sources for prospective employees include suppliers, former co-workers, clients, and professional associations. Put the word out among your social contacts as well—you never know who might know the perfect person for your operation. Bill Sonnemaker, who owns a facility near Atlanta, looks to hire trainers who share his strong interest in helping and educating clients. “You want to hire people with the same vision and the same passion,” he says.
It’s All Relative
While hiring your friends and relatives may not always be a great idea, once you have some employees (or independent contractors) on board, you may find that their friends and relatives are a source of good candidates.
Why? Because people who currently work for you will provide better referrals than those who don’t. Studies show that friends and relatives of a particular employee group will tend to possess values and performance standards similar to those of the members of that group. If you have an outstanding performer, chances are, he or she will recommend others of the same caliber.
Employees will also train and mentor their friends and relatives better than they will strangers. The relationship has already been established, and the senior employee likely has an innate desire to see the friend or relative succeed. Peer pressure is also at work in this situation. Because the reputation of the employee who made the referral is on the line, that person will probably exert substantial influence to ensure that their friend or relative achieves and exceeds your performance standards.
It’s a good idea to have a policy prohibiting relatives and close friends from reporting to one another. Be careful not to allow them to be placed in situations where their integrity could be questioned, such as handling money without a disinterested party supervising them.
Use caution if you decide to hire your friends and relatives—many personal relationships are not strong enough to survive an employee-employer situation. Small-business owners in all industries tell of nightmarish experiences when a friend or relative refused to accept direction or in other ways abused a personal relationship in the course of business.
The key to success as an employer is making it clear from the start that you are the one in charge. You don’t need to act like a dictator, of course. Be diplomatic, but set the ground rules in advance and stick to them.
When you actually begin the hiring process, don’t be surprised if you’re as nervous at the prospect of interviewing potential employees as they are about being interviewed. After all, they may need a job—but the future of your company is at stake.
It’s a good idea to prepare your interview questions in advance. Develop open-ended questions that encourage the candidate to talk. In addition to knowing what they’ve done, you want to find out how they did it. Ask each candidate for a particular position the same set of questions, and take notes as they respond so you can make an accurate assessment and comparison later.
You also need to evaluate their skills. You might ask a prospective trainer to demonstrate how they conduct a training session or how they would handle a specific scenario. And be sure to check out their credentials. Ask for proof of certification and contact the certifying agency to verify the documentation a prospective trainer provides. With literally hundreds of fitness-related certification programs offered in the United States, you need to educate yourself on the differences. See “Possible Interview Questions” below to help you start thinking about the qualities that are important to you in an employee.
Possible Interview Questions
Tell me about yourself. Or: Briefly take me through your resume.
How did you hear about the company? About the job opening?
Why are you interested in this particular position?
What companies do you compare us to?
What is an example of what you consider a “great” company?
Describe a time you had to use creativity to solve a problem.
Describe a time when you had to work in a group to overcome an obstacle.
Describe a time when you had to become the leader of a group.
Tell me about your certifications and those you plan to add to your resume.
What two or three accomplishments have given you the most satisfaction? Why?
What are your long-range goals and objectives?
What are your short-range goals and objectives?
How do you plan to achieve your career goals?
What are the most important rewards you expect in your career?
What are your preferred areas within the personal trainer career field?
How important is it to you to be prompt?
Describe a situation in which you had to work with a difficult person (another student, co-worker, customer, supervisor, etc.). How did you handle the situation? Is there anything you would have done differently in hindsight?
What motivates you to put forth your greatest effort? Describe a situation in which you did so.
How do you determine or evaluate success?
In what ways do you think you can make a contribution to our organization?
Describe a contribution you have made to a project on which you worked.
What qualities should a successful manager possess?
Was there an occasion when you disagreed with a supervisor’s decision or company policy? Describe how you handled the situation.
In what kind of work environment are you most comfortable?
How do you work under pressure?
Describe a situation in which you worked as part of a team. What role did you take on? What went well and what didn’t?
What two or three things would be most important to you in your job?
What criteria are you using to evaluate the organization for which you hope to work?
Will you work outside in weather for boot camps?
Are you willing to travel?
Are you willing to spend at least six months as a trainee?
“Because more clubs and employers are making certification one of the requisites for employment, some individuals will try to take a short cut and forge their credentials,” says Tony Ordas, formerly with the American Council on Exercise (ACE). “It’s important that employers and potential clients check with the respective certification organization to confirm that the individual is in fact certified.”
For administrative and clerical positions, you can administer typing and other tests that allow you to assess applicants’ skills and abilities. You can either make up your own test or purchase tests through commercial testing firms or human resources consultants.
Don’t accept what candidates put on their resume or application at face value; interview, test, and check credentials to be sure they have the knowledge and skills necessary to produce results for your clients.
stat fact
Reuters Health reported findings from a new Japanese study that showed women who spend a lot of time exercising or eat a heart-healthy diet appear to reach menopause earlier. While that doesn’t prove workouts and healthy foods are directly responsible, the American Cancer Society indicates that reaching menopause before age 55 may reduce lifetime exposure to estrogen and therefore reduce breast cancer risk.
When the interview is over, let the candidate know what to expect. Is it going to take you several weeks to interview other candidates, check references, and make a decision? Will you want the top candidates to return for a second interview? Will you call the candidate, or should they call you? This is not only a good business practice; it’s also just simple common courtesy.
Always check former employers and personal references. Though many companies are very restrictive as to what information they’ll verify, you may be surprised at what you can find out. Certainly you should at least confirm that the applicant told the truth about dates and positions held. Personal references are likely to give you some additional insight into the general character and personality of the candidate; this will help you decide if they’ll fit into your operation.
Keep in mind that under the Immigration Reform and Control Act of 1986, you may only hire persons who may legally work in the United States, which means citizens and nationals of the United States, and aliens authorized to work in the United States. As an employer, you must verify the identity and employment eligibility of everyone you hire. During the interviewing process, let the applicant know that you will be doing this. Once you have made the job offer and the person is brought on board, you must complete the Employment Eligibility Verification Form (I-9) and then retain it for at least three years, or one year after employment ends, whichever period of time is longer.
Be sure to document every step of the interview and reference-checking process. Even very small companies are finding themselves targets of employment discrimination suits; if it happens to you, good records are your best defense.
The hiring process is only the beginning of the challenge of having employees. The next thing you need to do is train them. Of course, a certified personal trainer should already know how to work with a client, but you need to take the time to teach him or her your own policies and procedures, as well as particular training philosophies you follow. Administrative staffers need to be taught your systems and have their responsibilities thoroughly explained.
Evaluating Certifications
How do you determine the quality of a certification agency? Legitimate agencies will be happy to provide you with information to help you make a decision about whether their programs are suited to your needs. Only a few organizations are accredited by the National Commission for Certifying Agencies, the accreditation body of the National Organization for Competency Assurance. Whether considering a certification for yourself or a prospective employee, here are some additional questions to ask:
Is the examination nondiscriminatory? Be sure there are no biases that would allow for an unfair advantage for any group. Ask for demographic data to support the answer.
Does the agency promote ongoing education? Certified fitness professionals need continuing education to stay on top of developments in their field. Look for agencies that require a number of Continuing Education Units (CEUs) to maintain their certification.
Does the agency have a formal disciplinary policy? Such policies are designed to protect the public by requiring the fitness professional to adhere to specific standards and policies.
Who serves on the governing board? Consider the credentials of these individuals. Ideally, at least one member of the board should be a public member—that is, a representative of the people who are being served by the certified individuals.
What are the eligibility criteria? There should be a logical and appropriate connection between what the certification requires and what the actual position requires.
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Don’t expect to find workers who have all the qualifications, experience, and training you want from the start. Look for a solid foundation of credentials, integrity, and character. Then be willing to train people to do things your way.
Proper training in the business’s approach helps instill confidence in the trainers, says facility owner Bill Sonnemaker, who requires each of his new trainers to go through a training period of two weeks to four months, depending on the person’s experience level. “If they lack confidence and they’re out on the floor, the clients are going to see that and they’re going to recognize the difference,” he says. And because trainers come from various professional backgrounds that may reflect different exercise philosophies, a formal training period helps ensure everyone is on the same page. “It’s okay that each trainer has their own personality, but the entire facility should be speaking the same message and providing the same information,” Sonnemaker says.
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Training employees and independent contractors, even those who come with impeccable credentials, to your way of doing things is extremely important. These people are representing your company, and they need to know how to maintain the image and standards you’ve worked hard to establish.
Whether done in a formal classroom setting or on the job, effective training begins with a clear goal and a plan for reaching it. Training falls into one of three major categories: orientation, which includes explaining company policies and procedures; job skills, which focuses on how to do specific tasks; and ongoing development, which enhances the basic job skills and grooms employees for future challenges and opportunities. These tips will help you maximize your training efforts:
Find out how people learn best. Delivering training is not a one-size-fits-all proposition. People absorb and process information differently, and your training method needs to be compatible with their individual preferences. Some people can read a manual, others prefer a verbal explanation, and still others need to see a demonstration.
Be a strong role model. Don’t expect more from your employees than you are willing to do. You’re a good role model when you do things the way they should be done all the time. Don’t take shortcuts you don’t want your employees to take, or behave in any way you don’t want them to behave. On the other hand, don’t assume that simply doing things the right way is enough to teach others how to do things. Being a role model is not a substitute for training; it reinforces training. If you only role model but never train, employees aren’t likely to get the message.
Look for training opportunities. Once you get beyond basic orientation and job skills training, you need to constantly be on the lookout for opportunities to enhance your employees’ skill and performance levels. You can provide the training yourself or send them to continuing education programs.
Make it real. Whenever possible, use real-life situations to train—but avoid letting clients know they’ve become a training experience for employees.
Anticipate questions. Don’t assume that employees know what to ask. In a new situation, people often don’t understand enough to formulate questions. Anticipate their questions and answer them in advance.
Ask for feedback. Finally, encourage employees to let you know how you’re doing as a trainer. Just as you evaluate their performance, convince them that it’s OK to tell you the truth. Ask them what they thought of the training and your techniques, and use that information to improve your own training skills.
Get Them Involved
Ask employees for their ideas on articles, website material, or newsletter content, and give them credit for it publicly! Pride is a wonderful thing and can motivate employees to confidently create more, and take on more responsibility. You can make article creation a contest by giving some examples of three-paragraph, humorous article ideas like these:
Metabolism with a Minimal Time Commitment
Put Down the Snickers, Put Your Hands on the Wheel, and Tighten Your Buns: Exercises That Fit into Your Schedule Anywhere and at Any Time
Yeah, Yeah. You Just Gave Birth. But Can You Do a Sit-Up? How to Quickly Get Back in Shape after Having a Baby
No More Dog Walks. You and Fido Need Aerobics! Fun Workouts You Can Do with Your Dog
Whether trainers are employees or independent contractors, they typically get a portion of the fee the clients pay. Jennifer Brilliant says her trainers get 50 to 60 percent, although new trainers get less than that until they’re up to speed. Her trainers are independent contractors, and she pays them every two weeks.
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Rewards other than money sometimes go further in expressing gratitude for a consistent job well done. Gifts are especially nice if they are unexpected. Try giving your employees gift certificates for Massage Envy (www.massageenvy.com). An hour-long massage will set you back just $50, and having refreshed and happy employees is priceless.
Another trainer we interviewed had a different arrangement, with trainers paid based on their revenue; the more they bill for the company, the greater their percentage. For a part-time trainer billing $3,000 a month, for example, there is a 50-50 split. For a trainer working full time and doing well, their revenue may be $10,000 a month, and they would earn 75 percent of that. “We only take 25 percent,” he says, “and the facility is still making more off that trainer than the one who is billing less and we’re getting 50 percent from.”
When you set a payment structure that lets your superstars make a substantial income, you accomplish two important things: You keep them working hard, because they’re being rewarded, and you give them the incentive to stay with you rather than move elsewhere or open their own businesses. If the trainer is an employee and has other responsibilities in addition to working with clients, you might want to pay them a small hourly rate plus a percentage of their clients’ fees.
The actual wages you pay may be only part of your employees’ total compensation. While many very small companies do not offer a formal benefits program, more and more business owners have recognized that benefits—particularly medical insurance—are extremely important when it comes to attracting and retaining quality employees. Offering a benefits package makes you more attractive to prospective employees.
Typical benefits packages include group insurance (your employees may pay all or a portion of their premiums), paid holidays, and vacations. You might offer year-end bonuses based on the company’s profitability. You can build employee loyalty by seeking additional benefits that may be somewhat unusual—and they don’t have to cost much. For example, if you’re in a retail location, talk to other storekeepers in the area to see if they’re interested in providing reciprocal employee discounts. You’ll not only provide your own employees with a benefit, but you may get some new customers out of the arrangement.
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If you have employees, consider using a payroll service rather than trying to handle this task yourself. The service will calculate taxes; handle reporting and paying local, state, and federal payroll taxes; make deductions for savings, insurance premiums, and loan payments; and may offer other benefits to you and your employees.
One type of insurance may not be optional. In most states, if you have three or more employees, you are required by law to carry workers’ compensation insurance. This coverage pays medical expenses and replaces a portion of the employee’s wages if he or she is injured on the job. Details and requirements vary by state; contact your state’s insurance office or your own insurance agent for information so you can be sure to be in compliance.
Beyond tangible benefits, look for ways to provide positive working conditions. Consider flexible working hours, establish family-friendly policies, and be sure the physical environment is comfortable and designed to enhance productivity.
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Before you hire your first employee, make sure you are prepared. Have all your paperwork ready, know what you need to do in the way of tax reporting, and understand all the liabilities and responsibilities that come with having employees.
Employees or Independent Contractors?
An important part of the hiring process is deciding whether you want to hire employees of your own or go with independent contractors. There are advantages and disadvantages to both approaches. What’s important is that you clearly understand the difference so you can avoid unnecessary and costly mistakes when it comes to tax time.
As an employer, you have greater control over employees than you do over independent contractors. Employees must comply with company policies, and with instructions and direction they receive from you or a manager. As a result, you’ll be more likely to have all of the trainers in your facility deliver a common message to clients than in the case of using independent contractors. Also, you can set their hours and other conditions of employment, along with their compensation packages. Of course, you must also pay payroll taxes, workers’ compensation insurance, unemployment benefits, and any other employee benefits you may decide to offer.
The IRS has established guidelines to assist you in determining the appropriate tax status of someone who is working for you. Essentially, you need to examine the relationship between the worker and the business in three primary categories: behavioral control, financial control, and the type of relationship itself.
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Before allowing independent contractors to use your facility or work with your clients, obtain proof of certification and insurance. Verify the proof by checking with the certifying agency and the insurance company.
Behavioral control means that the business has a right to direct and control how the work is done, through instructions, training, or other means. Financial control deals with issues related to the business aspects of the worker’s job. This includes the extent to which the worker is reimbursed for business expenses, the extent of the worker’s investment in the business, the extent to which the worker makes services available to the relevant market, how the business pays the worker, and the extent to which the worker can realize a profit or incur a loss. Finally, the type of the relationship includes written contracts describing the relationship; the extent to which the worker is available to perform services for other similar businesses; whether the business provides the worker with employee-type benefits, such as insurance, a pension plan, vacation pay, or sick pay; and the permanency of the relationship. For more information, consult your accountant or tax advisor, or see Publication 15-A, Employer’s Supplemental Tax Guide, which is available from the IRS.
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As unpleasant as it may be, it’s important to address employment problems early—such as showing up late or not being properly prepared ahead of time to train clients. Letting these situations go unchecked can make for even more aggravation down the road.
Noncompete and Confidentiality Agreements
To protect your company from an employee or independent contractor leaving you to start their own company that directly competes with you, you may want to ask everyone who comes to work for you to sign a noncompete agreement. Noncompete agreements typically consist of time, geography, and industry restrictions, and their enforceability varies by state. Have the language of your noncompete checked by an attorney familiar with employment law before you ask anyone to sign it.
Jennifer Brilliant says the noncompete that her trainers sign basically stipulates that the client belongs to the company. “It’s more of a good faith thing that says ‘I wish you to respect my work,’” she says.
Keep in mind that even though your employees sign noncompete agreements, they may choose to violate them. Then you have to make the decision whether or not to take the issue to court.