CrossFit NYC is in the coaching business. Our coaches are
our product. We compete for coaches, not only with other affiliates, but also
with other sources of employment. We’ve had several people give up high-paying
jobs to coach for us. In order to keep good people, we need to make it worth
their while to be here—and we do.
A part-time coach starts at $25 per hour, and shortly after
making it to twenty hours per week (usually over two to four months) goes to
$30 per hour. Our top rate is about $50 per hour. An average coach works 22
hours per week for about $40 per hour. Taxes and benefits for coaches cost us about
$12 per hour. We pay everything on the books. All our coaches are employees, no
independent contractors, no 1099’s.
We maintain a separate
checking account to cover payroll, so there is zero chance of a check bouncing.
We outsource our payroll, so that all taxes are filed correctly and on time. Meeting payroll is our number one priority. Everyone gets paid on time each week via direct deposit.
New York City has a sick-time policy that mandates one hour
of paid sick time for every 30 hours worked to a maximum of 40 hours for an
employee who works 1200 hours in a year. We improved on the system, with no
upper bound on time-off earned. For employees who have been with us two years
or longer, we give one paid hour off for every 20 hours worked.
We offer medical to coaches who work 20 hours per week and
to administrative people who work 35 hours or more per week. We pay the first
$400 per month on policies that cost about $750 per month, so the weekly copay for
the employee is about $75.
Overall, it costs us just over $50 per class for the coach
and an additional $20 per class hour for administrative overhead (head coach, operations
manager, customer service manager, Front Desk personnel, etc.) Our goal is to
keep payroll expenses below $75 per member per month.
When it comes to personal training, we borrowed a page from
Greg Glassman’s “least rents” model. We take next to nothing from our coaches who
train personal clients. Its money we leave on the table. CrossFit NYC is not in
the personal training business. We have conceded that market to our coaches as
either their primary or their secondary source of income (their choice).
CrossFit NYC is strictly in the business of running group classes, about 360 classes per week. (We are also not in the business of renting our facilities to people
who want “Open Gym” memberships.)
A full-time coach at CrossFit NYC (20 hours or more of
scheduled classes) pays us $2.50 per hour per private client. A part-time coach
pays $5 per hour per client. The charge is mainly to insure that there is a
process in place. Private clients check in at the Front Desk, so we can make
sure they have a waiver on file; and they sign a logbook, so we have a record
in case of an incident. Beyond that, private clients pay their coaches
directly. Starting this year, we will
require that anyone doing private training have a separate personal policy with
the CrossFit Risk Retention Group.
At the high end, we have a coach who teaches five classes per day, two days per week, and gets paid an additional weekly salary to manage our
mentee program. Along with our head coach, she acts as the gatekeeper for new
hires. She has maybe twenty five personal client hours per week, for which she pays us about $60 total. Another senior
coach who manages our blog and social media chooses to work a bit under twenty
hours over four weekdays. In addition, he gets a salary for his administrative
role. Our head coach teaches about fifteen classes per week and gets a separate
salary for doing our programming and managing the coaching staff.
We do our best to accommodate our coaches’ preferences for
when they want to teach. With the number of classes we run, we can be fairly
flexible—to a point. As a general rule, we respect seniority in making
scheduling decisions, and our ten most senior coaches pretty much have the
exact hours they want. New hires start out taking what we can offer them, fewer
hours at first, often on the weekends, gradually more hours. Many senior
coaches cut back on their days and hours, so that they can handle more
privates, which is where the money is for them. This is fine with us, because
it allows newer coaches to gain hours, and it keeps great coaches on our staff.
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