The Importance of a Quality Staff

Warning Signals that Your Agency is in Trouble

by Jeff J. Greenwald

Number One Rule: Health club members renew their membership at a facility because they feel they are getting a good value for their money. At $200 or $1,000 per year, a member will only renew if they receive a good value for their money.

A quality staff structure has been one of the primary reasons the Elk Grove Village Fitness Centre has experienced great success. Money spent training and improving staff is rarely wasted. During the past 3.5 years, I have rebuilt a staff structure to include 50 employees (up from 29 in 1989).

Certification of employees is an important part of a staff structure but is not always my top criterion for hiring an employee. Many times I look for a good "people person," an individual that can communicate and interact well with the membership and has a genuine interest in their well-being. Much of the basic fitness knowledge can be taught through an in-house training program. However, I have not found an easy way to teach "people" skills; it seems to be more of a natural instinct. Many service desk employees and basic floor staff will excel in your facility and with your membership if they have this special trait.

The backbone of the Fitness Centre is three shift managers and one exercise technician. These four individuals work nearly forty hours each week and do everything from testing new members and training employees to keeping the members satisfied. These four have their B.S. in fitness, are dedicated to the fitness field, and possess good "people" skills. Do not skimp in this area! The money spent on managers will return two-fold. They are your back-bone.

Is your agency in trouble? Because payroll is usually the single largest line item expense for any business, when times get tough, payroll is often the first area considered for budget cuts. A recent article published in IDEA Business Today and written by A. Peter Winfrey points out that the time to look for important warning signals is before your agency is actually in trouble. Winfrey suggests keeping an eye open for the following warning indicators. See if this sounds like your agency.

• Reduced working capital

• Accounts payable falling behind

• Reduction of return investment

• Stagnant or decreasing sales

• Income statement indicating several quarters of losses

• Increased employee absenteeism

• Increased employee accidents

• Increased customer complaints

• Late financial and management reports

• Lack of confidence in accuracy of internal information

• Increased management and employee turnover

• Loss of market share to competition

• Management conflicts with company goals and objectives (management and company are following different directions)

Winfrey indicates that not all of these signals will necessarily appear, but there is sufficient cause to worry if some do. If you are finding yourself with some of the above warning signals, Winfrey has several steps an owner/manager can take to get his/ her business back on the right track.

• Keep close track of cash management

• Keep close tabs of profit margin

• Build team spirit

• Change as markets change

• Keep major customers happy

• Continually compare key ratios to budget and industry

• Balance a top management team with a participative board

• Clearly focus strategy

Key financial indicators can be valuable tools for spotting potential problems. Winfrey suggests that current ratios be compared to periods and industry averages. By sharing this information with your staff, you can involve them in the problem solving and goal setting of the agency which will increase your agency's quality.

A quality staff structure will be felt by your membership and will develop into a primary reason why your membership will renew year after year.

Reference

Winfrey, A. P., "Recognizing the warning signals that your business is in trouble," IDEA Business Today, April 1993.

About the Author
Jeff Greenwald is the Facility Coordinator for the Elk Grove Park District and member of the IPRA Facilities Section.