The Gym Group plc Potential changes to member service proposition (8737W)
November 17 2017 - 8:55AM
UK Regulatory
TIDMGYM
RNS Number : 8737W
The Gym Group plc
17 November 2017
17(th) November 2017
The Gym Group Plc
("The Company" or "The Gym")
Potential changes to member service proposition
Since the Company opened its first site in Hounslow in 2008, the
Gym Group has grown rapidly. During this time the Company has used
an operating model that enables it to partner with wholly
self-employed personal trainers. Whilst member satisfaction remains
high, with Net Promoter Score of 63.2% at the half year,
increasingly the Company believes that its operating model does not
deliver the consistency of service we believe our members
expect.
As a result of its rapid growth, The Gym Group has been
evaluating over recent months, the benefit of potentially offering
part-time employment to some of its self-employed personal
trainers. The rationale for this potential change to our operating
model is to deliver an even more compelling offer to members
ensuring we can deliver consistently high standards of service in
all our gym locations.
Offering part-time employment to some of its personal trainers,
whilst enabling them to continue to operate their personal training
businesses on a self-employed basis, would deliver a more effective
arrangement for members, General Managers, personal trainers and
the Company. As part-time employees, personal trainers would be
remunerated for their time (12 hours a week) working on behalf of
The Gym on various operational tasks. As self-employed personal
trainers, these same individuals would pay a rent to The Gym to
operate their personal training businesses outside their contracted
hours. It is proposed that self-employed trainers, who choose not
to accept part-time employment would have no tasks to perform on
behalf of The Gym and would be charged a market rent to practice in
the gyms.
This new approach should benefit those personal trainers who
choose to be employed part-time, by offering them an element of
fixed remuneration together with all the rights and
responsibilities that come with employment. Additionally, there may
be potential career opportunities within the Company for those that
want to apply. The benefit for The Gym will be the ability to
manage its Gym operations more effectively.
We are planning on trialling the new operating system in a small
number of gyms in early 2018 and, if successful, we anticipate that
the new arrangement will be rolled out across the Company over the
next six to nine months.
It is anticipated that the overall financial impact would be
neutral.
John Treharne, CEO, said:
"We constantly review our business to determine the best way of
operating The Gym as it continues to grow. We are evaluating the
benefits of having some of the personal trainers employed on a part
time basis, reporting directly to the in-house team to deliver a
consistent offer and the highest levels of service for our members.
(They will remain self-employed when delivering personal training
services to their clients). We plan to pilot the new model before
potentially rolling it out more widely across the Company's
portfolio. "
Enquiries:
The Gym Group via Instinctif
John Treharne, CEO
Richard Darwin, CFO
Numis 020 7260 1000
Oliver Cardigan
Oliver Hardy
Toby Adcock
Instinctif 0207 457 2020
Matthew Smallwood
Justine Warren
This information is provided by RNS
The company news service from the London Stock Exchange
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