We appreciate your involvement and support in today’s #TalentNet event! On behalf of our case study sponsors 24 Hour Fitness and SHRM, a very warm welcome and thank you!

Sincerely,

The #TalentNet Team

Craig Fisher (@fishdogs)Matt Charney (@mattcharney)Crystal Miller (@theonecrystal)

24 Hour Fitness TeamMark Foley (@fmarksthespot)Lance Sapera (@LSap3pc)

Welcome to the 3rd Annual TalentNet Live conference event during Austin Interactive. The TalentNet team has worked hard in concert with our sponsor partners to put on what is a very different learning event for our industry: TalentNet Interactive - a “living case study” excersise to be conducted through hands-on workshop sessions. These workshop sessions will be held as a track option in addition to the valuable general learning sessions on pertinent industry topics that TalentNet conference attendeeshave enjoyed over the years.

The workshop will begin with a brief overview of 24 Hour Fitness’ talent function and interview with Director of Talent Acquisition, Lance Sapera. In the weeks leading up to the conference, TalentNet team members haveworked in concert with 24 Hour Fitness leadership to conduct a brand, culture,and recruiting audit of their programs.

After the overview session, attendeeswill participate in three sessions acting as “focus groups” exploring how toimprove 24 Hour Fitness’ talent programthrough:

1. brand story & messaging/content2. social media platforms3. candidate pipelining and engagement

At the conclusion of each session, recommendations will be recorded bythe session facilitator. Following the conclusion of all three sessions, track participants will reconvene to presentrecommendations & obtain first impression feedback from Lance. Templates are provided in workshopworkbooks for attendee use.

Overview –

For the last 20 years, 24 Hour Fitness has worked to bring value to over 3.5million members across 400+ clubs nationwide through �tness. The execution of this mission to “improve the lives of others through �tness” makes each of the team members that work for the company part of something that’s bigger than just themselves, their individual roles.

Until recently, 24 Hour Fitness had a limited online presence with very little employment brand presence. The roughly 3,000 positions that were open and candidates being recruited for were largely managed through job boards and club-level recruiting. Upon reviewing their recruiting process, 24 Hour Fitness identi�ed several areas of concern that were a�ecting both their brand and recruiting program:

1. An inadequate applicant �ow of candidates who match company culture requirements of commitment to �tness & healthy lifestyle.

2. 25 years of poor perception from previous/outdated practices such as high-pressure sales from commissioned sales people.

3. Fragmented brand messaging & recruitment processes due to recruiting disconnect between corporate and club levels.

4. Employer reputation issue that club level employees were not adequately supported or prepared for their career by corporate.

5. Perceived lack of internal mobility

6. Poor compensation leveling and structure, impacting candidate �ow in certain highly-competitive talent segments (i.e. tech, cash-driven commission sales)

7. Signi�cant levels of negative reviews on sites such as Indeed and Glassdoor (where the company has invested in a branding presence)

24 Hour Fitness: Current Talent Attraction Strategy

Leadership not only took measures to address the issues impacting their employer reputation, but determined that a more deliberate focus on culture creation, employment branding, and social recruiting was needed. In an e�ort to improve their online footprint, 24 Hour Fitness created a strategy centered around their .jobs career portal and SEO footprint, with the help of the Direct Employers Association. The strategy includes 15 microsites to address regional recruiting & specialized recruiting needs such as college, diversity, and military hiring. As a result, 24 Hour Fitness has seen a 661% improvement in Google Indexing (see graph) since April of 2011, with growth from 2% to a 25% conversion rate from visitors to actively clicking to begin the apply process.

24 Hour Fitness also created a talent network, Careers Facebook page and career site leveraging SAP’s Jobs2Web platform. In the �rst 4 months, they gained 105k talent network members. Finally, they are in the process of creating a focused careers strategy for Twitter, utilizing the Company-created hashtag, #24HRFitness, and tweeting from their consumer account via their corporate Social Media Team.

Bene�ts Overview: Brand Perceptions

Perhaps the strongest bene�t and aspect of 24 Hour Fitness’ strategy is their brand promise alignment with employees. 24 Hour Fitness has been extremely deliberate in educating both consumers and employees on their mission/promises and then “living out” those values.

Both current and former employees consistently re�ect on this delivery as a reported positive aspect of employment. This is a strong, underlying factor of their reported employee engagement levels of 86% - signi�cantly above the industry average.

24 HOUR FITNESS BRAND STRATEGY: Maintain values alignment through shared consumer and employment vision. One story, One Voice.

24 HOUR FITNESS BRAND STORY: Primary Vision: “Our team members are dedicated to improving lives through �tness.”

Secondary Vision: “More than a career… part of something bigger than ourselves.”

Perceived Primary Brand Personality Traits: Passionate, Service, Teamwork, Community, Opportunity

24 Hour Fitness Brand Positioning Statement:

More than a career:

- A passion: We improve lives every day by helping our members succeed in �tness. - A community: We work and play as a team to create an exceptional experience for all. - A lifestyle: We make �tness a way of life, for ourselves and the people we inspire.

Benefits: Culture Branding

Employees are screened for and expected to maintain a passion about improving lives through fitness – and must firmly believe in that mission as an essential element of both 24 Hour Fitness corporate culture and hiring criteria. Enthusiasm about fitness and a healthy lifestyle, passion about great customer service and helping them on a fitness journey is engrained into the Company DNA.

The company provides every employee with a complimentary gym membership, pays for therecertification of personal trainer employees, and has expanded onboarding training for personal trainers to eight weeks to help ensure employees are properly trained to know and share fitness best practices with club members.

Recently, select employees from both club and corporate levels were used for recruitment marketing videos that have been integrated into branding efforts and are visible on 24 Hour Fitness’ careers sites and YouTube channel.

One of 24 Hour Fitness’ primary selling points is the enthusiasm of employees for their work and its fitness-driven mission. Periodic employee engagement surveys have shown internal engagement at 84-86%, well above industry benchmarks.

Within its category, 24 Hour Fitness enjoys the highest sentiment of employee reviews on employee review websites, specifically Glassdoor.com, where the company has made a significant branding effort.

According to Glassdoor, when current and former employees are asked whether or not they’d recommend working at each respective organization to their friends, almost 50% of respondents for 24 Hour Fitness responded yes, compared with only 32% at LA Fitness, and 28% at Lifetime Fitness, two of their primary competitors.

Additionally, CEO Carl C. Liebert III enjoys a 64% approval rating, compared to 23% for his counterpart at LA Fitness or 43% for the CEO of Lifetime Fitness.

Recruiting Program:

Organizational Structure:

Under the leadership of Chief People Officer and Corporate EVP Mark Foley, 24 Hour Fitness’ dedicated talent acquisition team consists of one Director (Lance Sapera), and two in-house recruiters who handle corporate requisitions for:

1. San Ramon headquarters 2. Technology group based in Carlsbad, California, 3. Field positions at the General Manager level or higher.

Typically, these recruiters are actively managing 18-20 open requisitions. Despite many hard-to-fill roles such as IT and finance staff, there is almost no usage of third party agencies or search firms, and limited investment in traditional job boards such as CareerBuilder or Monster.24 Hour Fitness does utilize the use of LinkedIn and Dice for technology postings as needed.

For exempt positions at the department manager level or lower and all non-exempt roles such as personal trainer, recruitment and hiring is the responsibility of the General Manager at each respective club.

The in-house recruitment team is responsible for driving applicants to the club level for review through the use of Brassring’s Talent Scout Product. The General Manager at each club can access this ATS to view relevant resumes for their location and oversees screening, selection and hiring at the local level.

Microsites:

The recruiting program maintains 15 microsites to help with optimizing online presence, SEO, & driving applicant flow through the .jobs initiative created by the Direct Employers’ Association (DEA):

All candidates receive an automated response upon receipt of application acknowledging their candidacy and offering them a link to sign up for a free trial membership, an effort that’s designed specifically to improve candidate experience while aligning employer and consumer brands.

Referral Program:

Although their hiring function is extremely lean, 24 Hour Fitness does not have a formalized employee referral program – primarily because for the vast majority of their volume hiring (front desk receptionists, service representatives, etc.), they do not have the internal capacity to support the candidate experience and personal touch 24 Hour Fitness believes is necessary to maintain a successful program. Referrals are accepted on an individual basis.

Recruitment Advertising:

24 Hour Fitness’ core career site is built on Jobs2Web; for corporate or GM positions, recruiters initiate a kick-off meeting with the hiring manager to capture key requirements and build a job description which is optimized for search engines through keyword targeting, organically driving candidates with relevant experience and skills directly to the primary 24 Hour Fitness Careers Site (http://careers.24hourfitness.com/).

Once a position is created, it is automatically posted to their Careers site via the Jobs2Web platform, as well as relevant microsites. These position descriptions are also scraped by aggregators such as Indeed, SimplyHired and Glassdoor. 24 Hour Fitness has invested in building enhanced, branded profiles on both Glassdoor and LinkedIn, as well as specialized job boards such as Dice for specific hiring needs such as technical and accounting professionals.

Social Recruiting Program:

24 Hour Fitness’ consumer Facebook page (http://www.facebook.com/24hourfitness) has a dedicated careers tab, exposing job opportunities to an active community of approximately 225,000 fans:

Social Recruiting Program:

24 Hour Fitness Social Sites:

Twitter: http://twitter.com/24hourfitnessFacebook: http://www.facebook.com/24hourfitnessLinkedIn: http://www.linkedin.com/company/24-hour-fitnessFitness Community: http://community.24hourfitness.com/YouTube: http://www.youtube.com/user/24HourFitnessIncFoursquare: https://foursquare.com/24hourfitnessInstagram: http://instagram.com/24hourfitness/Pinterest: http://pinterest.com/24hourfitness/

Appendix A: Sample Job DescriptionJob Description: Sr Java Web Developer

24 Hour Fitness is a leading health club industry pioneer, serving nearly four million members in more than 400 clubs across the U.S. Throughout our 30+ year history, we've held fast to our mission of helping people improve their lives through fitness. Join our energetic team and deliver high-quality software applications while enjoying what you do.

We are looking for an energetic and team focused Java developer with experience in website design to join our team, using technology to reach potential customers and give a competitive advantage to our team members. This is an exciting opportunity to develop for multiple platforms, both mobile and desktop, that will reach consumers both internally as well as externally through our corporate website.

ResponsibilitiesSenior Java Web Developer will design and develop new features and applications supporting the sale of memberships and ancillary services. You will play a critical role in the design, implementation and delivery of the application releases. You will work on projects with cross-functional teams building new applications and creating new features.

Core job functions include:· Develop, design, and troubleshoot new and existing Java-based applications· Design and develop reusable components/services using industry standard design patterns to access business data· Create necessary technical design documents based on functional requirements from the Business Analyst· Create prototypes and mock-ups, and translating those into working applications· Review and approve code solutions and deployment instructions provided by other team members to ensure adherence to standards and to validate quality· Provide both technical and leadership direction to less experienced teammates and resolves issues at the lowest possible level and escalates when appropriate

Required Skills· 6 or more years of development experience with Java enterprise applications (JEE)· Java experience in web application environment required; JSP, JavaScript, jQuery, HTML, and Web Services· Knowledge of object oriented design principles· Knowledge of UML· Frameworks including Spring and Hibernate (or other ORM)· PL/SQL and Oracle database development knowledge· Knowledge of Adobe Flex a plus· Strong debugging and problem solving skills; analytical skills· Excellent communication skills· Leadership skills: ability to lead a team to accomplish goals and mentor others

KeywordsJava, Spring, Hibernate, Web Services, Oracle, JSP, JavaScript, jQuery, HTML, San Diego

To leverage the considerable work that 24 Hour Fitness has made into creating a cohesive, authentic brand story that resonates with both its consumers & employees to create a scalable and sustainable recruitment marketing & social recruiting programs that positions 24 Hour Fitness as the employer of choice within the �tness industry at both the corporate and individual club level.

This strategy should support 24 Hour Fitness’ long term talent objectives of expanding and diversifying 24 Hour’s Candidate Pipeline as well as developing passive candidates and brand advocates with in-demand experience and skills in a highly competitive industry and marketplace.

You will work in teams to develop a strategic employer brand and interactive recruiting framework to be delivered to Lance Sapera, Director of Talent Acquisition for 24 Hour Fitness. Your recommendations should include how to develop, launch, manage and sustain a comprehensive talent acquisition strategy for candidates across functions, levels, titles and geographies.

When developing your recommendations, please note:

1. The maximum budget allocated by 24 Hour Fitness for these initiatives is $5,000/yr. All strategies must �t within these budget parameters.

2. 24 Hour Fitness’ talent function is lean, composed of one Director and two in-house recruiters; all strategies must not take more than 10 hours a week to implement/ integrate into current workload due to these resource limitations.

You will work with teams to develop a strategic employer brand and interactive recruiting recommendations that at the conclusion of the workshop will be presented to Lance Sapera, Director of Talent Acquisition for 24 Hour Fitness.

Your recommendations should include how to develop, launch, manage and sustain a comprehensive social talent attraction & acquisition strategy for candidates across functions, levels, titles and geographies.

After the conclusion of the conference, Lance and 24 Hour Fitness’ executive leadership will review your recommendations for potential implementation, documenting and delivering feedback which will be shared directly with conference attendees no later than April 17, 2013, at the conclusion of the SHRM Talent Management Conference.

The information on the preceding pages provide the background information on 24 Hour Fitness’ current talent acquisition initiatives and recruitment strategy necessary to answer the question:

How can 24 Hour Fitness position itself as the top career destination within the �tness industry to attract, hire, and retainthe best talent possible, while ensuring a candidate experience which makes even those applicants who are not selected feel engaged and positive about the 24 Hour Fitness consumer brand?

Lance and the entire TalentNet team are here as resources to answer or address any outstanding questions, concerns, feasibility information or context you’ll need to succeed in helping one of the world’s leading consumer brands become one of the world’s leading employment brands for today – and tomorrow.