Episode #577: Driving Employee Wellness Participation-Rich Novelli's Platform for Small Business Success

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This is Pete Moore on Halo Talks. I'm Bringing back guest

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245, a good friend of mine for a short 25 years in the

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Halo sector, hailing and living in

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Reading, California, Rich Novelli.

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Welcome back to the show, buddy. Thanks, Pete. It's been a long time, man. You

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haven't changed a bit. Likewise. Good to see you looking

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strong and fit as always. So look,

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last time we chatted you were operating health clubs. You've been in the industry

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for a long time in a legend and a

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vet of doing good things and impacting a lot of people. So give us a

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little update now on what you're doing with Navita on the corporate wellness

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side and also on the, on the small group coaching, which I think is cool,

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as well as the individual coaching. Yeah, it's

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been a kind of a revelation, Pete, that I think technology

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and corporate acceptance has gotten to this

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convergence now where companies are realizing that they

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really can't see employee wellness as a nice to

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have. It's really a need to have. And

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the sector is exploding. Current market value

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somewhere around $19 billion and it's

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projected to grow to about 25 billion in the next five

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years. So this is it really kind of made me sit

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up and take notice and I wanted to continue to contribute outside

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of the health club sector because I've been in it for about

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40 years. And while certainly we can

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really impact a lot of people, what we're finding is that

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10% of the people work out in health clubs. So how could I impact

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their health and wellness in a scalable fashion,

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in more of a participatory engagement type,

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type of platform? So I've partnered with a company called

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nuvita, they're out of New Mexico and they have about a 12 year history

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of working with over 200 very well

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known companies like Pfizer and GE and even

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governments like the city of New Mexico, our city of

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Albuquerque. Sorry. And so I partnered with them and

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developed my own platform called Alegria Wellness.

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And essentially it's a comprehensive platform, it's app based

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that I'm really kind of marketing towards small businesses,

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anywhere from five to 300 employees

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that are really underserved. And as much as the corporate

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wellness sector is exploding, it continues to be really

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more acceptable by larger companies. So how can we get this out to small

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companies? How can I service

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individuals on a personalized coaching basis, but

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using an app that drives basically data

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input across exercise, nutrition,

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stress management, socialization and

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get these people involved where they are not necessarily

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in the health Club. If they're not health club people. We want to drive

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participation through one of these or all

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of these five sectors. And they use

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the app to input information about what they're doing.

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And then I can personally coach them through the data that I collect

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on the coaching portal that I use. And that coaching can be

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anything from zoom call to

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text, email, you name it, we can do that.

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But again, the goal here for me, Pete, was how can I

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get more participation? How can I get more engagement

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than the traditional health club model

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and really drive this? So it makes sense for the employees,

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but it also makes sense for these companies that are saying

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10% participation is not going to cut it for us. We want to

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see 30, 40% participation to justify,

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you know, sponsoring a program like this.

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This is Pete Moore. I want to let you in on a little secret. There's

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this company called Promotion Vault. And what they do is they give out rewards

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from retailers that allow you to incentivize your

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members without having to do zero down and one month free

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or giving away shakes or giving away T shirts. What you want to

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do is build a rewards program that lasts, that people

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value, and that doesn't discount your own products and services.

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So here's the deal. There's something called Rewards Vault. The Rewards

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Vault is going to allow a member to set up their own profile.

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They are going to answer questions, you are going to get those answers. You're going

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to be able to target those members, and you're going to reward them inside your

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club, inside your spa, and outside of the club and

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outside of the spa to get them to become loyal, to get them

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to pay their monthly dues and to be rewarded

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properly for the actions. A lot of companies are cutting back on rewards.

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You shouldn't be Promotion Vaults. Your answer, trust me, this is real.

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People have been talking about corporate wellness and employee wellness for a long time,

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and I feel like there's always been a slight disconnect

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between the amount of benefits and the potential impact

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and the actual usage of. I think that a lot of

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companies thought, oh, I'm just going to put this technology platform on the back end

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of your corporate intranet. And, you know, everyone's just going to gravitate towards it. I

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feel like the reality is that you need a coach, you

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need somebody championing that, whether that's internal or external.

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So I feel like, you know, given your background and your ability to

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motivate people and to hold people accountable,

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it's kind of an interesting play for you to. To go in there and Also

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from a standpoint of going into small, medium sized businesses, I mean that's where

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the, the most of the US economy

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is. From a standpoint of, you know, self employed

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professionals that are going in and they're, they're trying to better

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their lives and have a little more, you know, entrepreneurial

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opportunity and autonomy. Yep. But I think a lot of those people fall

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out of the health and fitness, you know,

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category because they're, you know, deconditioned and nobody's

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actually there to, to help them or, you know, create challenges or, you know,

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executive coaching for small to mid sized businesses

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is probably the lowest percentage

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participation or usage, I think, versus, you know, the financial

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industry and hedge funds and you know, you like watch their show Billions and they

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got like an HR woman that, you know, kind of, you know, like coaches people

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up and you know, would that be great if you know, like the average

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distribution company has 50 people could have somebody like

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that like you to basically say, hey, look, I could actually coach

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up this team. And you could have the same benefits that

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some of these bigger institutions that are spending a lot of dollars

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on their productivity and on their people. Because obviously even

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with AI, AI is like a tool and a weapon.

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It's not a, you know, a place for executives to

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be replaced. You know. Exactly. I was just gonna, I was just gonna say

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that too, that AI can do a lot. But

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you know, the whole point of accountability, coaching,

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keeping people accountable for what they want to do in their wellness

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lifestyle, has to be a personalized touch. And a lot of times

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that's just listening. Right. So, you know, from

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an employee perspective, this really kind of hits a lot of my

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sweet spots because it's about exercise, it's about

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nutrition, it's about stress management, it's about socialization.

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But I can meet them where they're at if they're not going to a gym.

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That's great. We have on demand workouts. I can walk them through

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walking platforms, I can walk them through weightlifting platforms, whatever it

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is that kind of sparks their motivation and then I can hold them

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accountable. And on the nutrition side, we talk a lot about being

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consistently good instead of occasionally perfect on your

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nutrition. But there's a lot of tools that I can provide through

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this platform that shows them how much to eat, when to eat,

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portion size, even suggestions for protein

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sources, carbohydrate sources, and again, I can coach them

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on that stuff while not necessarily having to be face to face

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face with them. Now what's cool is on the corporate side, of course, a lot

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of the small companies now are seeing employees health as a

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strategic business asset. They need a competitive

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advantage, they need improvements in recruitability and retention. And

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the technology that's now kind of caught up in this sector, such

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as AI and wearable trackers have made

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this a lot more approachable but also a lot more

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affordable. So the average cost for something like this for a

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small company could be anywhere from

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a small to medium sized health club membership. It's really

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very affordable and the more participants that we have,

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the more that that cost can come down. So from a

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company's perspective they can justify it from all the ROI

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that they see. But the employees that are participating

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in being engaged in this now at larger numbers

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are really what's going to also justify this for these, these small companies.

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Awesome. Well, you know, from a standpoint of companies that

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you want to target, you know, obviously you can do everything

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remotely and through ZM Zoom and so on and so forth.

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But are there certain areas of the country where you know,

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you say hey, I'm going to, I'm going to be there hands on and in

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person or how do you kind of view this business?

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Yeah, that's a great question and I thought a lot about that. Obviously I'm

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west coast based and a lot of what

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I've approached small companies with in this regard is

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look, I can come out and do workshops, I can come out and do

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employee meetings, we can do lunches and those

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kind of things. So you know, for companies that are cross country obviously

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that becomes a little bit more problematic and people that, but

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if they have the appetite for that, I can certainly do that. I

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really don't want to limit too much of my geographic

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participation because so much of this can be done

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remotely. I can really customize this to what the

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companies are looking for. But I am targeting these

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smaller scale companies because that's where I feel the

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underserved market is at this point. It's getting with these small companies

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and really making a difference in an impact. And not to put too

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fine a point on it Pete, but these small companies also you

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get this team building type of attribute to this

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when you've got a smaller group of people. I can break this program up

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into teams where you know, one team is competing

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against another team. We do six week challenges.

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So you're talking about a minimal commitment for people that aren't really

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fired up about exercise. Well, it's six weeks and

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we're going to make this. So I'm with you every step of the way. And

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after that first six weeks. The participation rate historically

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has gone from 30% to 45%. And

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these companies do three or four of these six week challenges a year

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and now it becomes the ROI just jumps after

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that. So that's kind of where I'm at. I don't know if I answered

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your question that much, but. Yeah, you did. You did. I think,

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you know, look as people kind of turn into their 2026

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budget and turn into, you know, understanding that

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a coach in every sport makes the team better. You're more likely

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to win when you've got player personnel that are actually out there,

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you know, managing your employees. And you know, there's a lot of things going on

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with mental health right now. There's a lot of things going on with, you know,

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people taking GLP drugs and you know, some of these things are,

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you know, like quick fixes. But at the end of the day, like having a

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coach that's predictable, that's sustainable, that, you know, is

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looking out for your team and looking out for each one of your players. Because

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I view every employee is just an athlete that just happens to be in the

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business world. There should probably be called business ball. And then people would actually take

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this a little more seriously from like an athletics athletic

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standpoint and like being fit to work. Yeah. Actually benefits

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everybody. You know, when they roll out of bed and they come into the office

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and they feel strong and confident, it pervades into

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everything you do. But at the bottom line is when, when I talk to

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companies and I ask them, have you tried in employee wellness? Yeah, we have. Well,

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what did you do? Well, we did a health club membership. Okay, why did

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that work? Well, we got some people that saw that as a positive and they

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participated. What percentage? About 7 to 10, 12%.

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Okay. What about the other 90%? Yeah. Well, it wasn't for

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them. So the barriers have been affordability,

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participation and personalization. Right. So

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if I can be, I'm going to be that accountability coach for every one of

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those people that signs up and those, those

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workouts and those nutrition program and that stress management program can be

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different for every person. And the platform

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allows me to personalize that and then coach them up to that

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point. So if we've removed those barriers, then

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we can see greater amounts of participation and that's what's going to get

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catch the attention of these smokers. One important

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point I think that you kind of just touched on is people that have not

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had success with corporate wellness. They have to really go back and

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diagnose like what they really had like you didn't really have a

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coach, you didn't really have a, you know, person that was, that was

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accountable. There was account exec. You basically had a website that might have

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been private labeled on the back of your corporate intranet, that had no

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connectivity or stickiness or challenges or

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communication tools or, you know, calls to action or

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motivation. You just basically had a rebranded,

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you know, skin of a website that had some cool shit on it

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that somebody could go and they could take, oh, wow, I can get like this

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discounted health club membership. Okay, that's like not really a call to

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action. That's just like an employee benefit that happened to be on the

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back of your corporate Internet that has a thousand other links on it. So I

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think people as they go into 20, 26 here, you know, reframe how you

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think about corporate wellness, maybe erase what you thought it was

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and say, hey, if I could actually bring in an executive coach and I

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could actually bring someone in to help me optimize my team

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and then he's, he or she and you are bringing in these weapons

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of how can I actually get people off the couch, make the right

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decisions and become more productive and more of a

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team player. Like that's really the objective that we're going with. It's not

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a website or just an app. This is like a, you know,

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hands on approach to corporate optimization. It

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really is. And what's really cool on the back end of this, Pete, is that,

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you know, we'll do all the heavy lifting. So if you've got a small

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HR department or maybe no HR department to get something like

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this kicked off, we provide all the marketing.

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So we provide the marketing materials. We give this to you to

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review and approve. You push it out through your normal employee

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communications, but you don't have to create any of this

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marketing material that's going to go out to your employees to get them excited.

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And then we also provide weekly bimonthly

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analytics tools. So how is it being received?

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What is the feedback that we're getting from your employees so that

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your employees and the company can

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see kind of how this is going for you? So we remove

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a lot of the heavy lifting that a company would have to do because everybody's

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busy. I get that. And you may not have a wellness expert as you

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alluded to early in the conversation. The larger companies can

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afford to do that, small companies can't do that. So how can we provide

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a soup to nuts kind of solution for them? That really makes

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sense. And like I said, that's very Affordable for them on an

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employee scalable basis.

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This is Pete Moore. Here's the last tip for you of the podcast.

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We are partnered up with a company called higher dose

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higherdose.com they are the leader in

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workout recovery products. Infrared technology,

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LED light masks, neck enhancers, and

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other products such as PEMF mats and sauna

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blankets. If you have not gotten on the workout

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recovery train yet, your time and your stop

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is now. You got to get these products in there before these workout

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recovery and spas end up saturating your market.

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Having your members walk out of the club and going into one of their locations

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for 200 bucks per month where they're paying 39 to

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you. Let's become an expert in workout recovery. If we

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are already an authority in workouts, Higher dose,

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check it out. There's a wholesale code and we look

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forward to helping you augment your products and services

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to meet the demands of your members. And hey, let's get people

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happy, healthy and sweating. And the recovery should be

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just as good as the workout.

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Well, I will say in closing here that if you said to me,

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give me a top five list of people who actually care. C A R

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E Rich Novelli makes a top five list over the last 25

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years. So if you're looking for a coach that actually takes things not just from

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a business standpoint, but it takes things personally. It says like, I am coming

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in here and I'm going to do this, that I am going to help you

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optimize your team. Team. It's not just him as a business person, it's him as

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like a human and wanted to make an impact and contribute. So, Rich, I, I

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think I'm excited about where you're going with this. I hope more companies get involved

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and hopefully this podcast leads us from good groups that say, hey, I want

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to jump in here and I want, I want Rich to help me optimize my

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team. So look forward to, to 2026 and let's,

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let's get people more healthy, motivated and productive and that

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leads to a society, you and I want to live it well. Pete, thank you

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as always for your support and for you leading the way in this

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sector. Halo sector has never had a better champion and you

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do so much for all of us in this, this area. So

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thank you for that and thanks for having me on, brother. I mean, it's great

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to see you. It's good to see you, man. Awesome.

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This is Pete Moore on Halo Talks, your captain speaking. I am the

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founder and managing partner at Integrity Square We've been around now

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for 15 and 1/2 years. We have been helping

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people like yourselves get capital, do mergers and

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acquisitions, consulting strategic advice in the health,

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active lifestyle and outdoor halo sector. Trying to

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help as many entrepreneurs as possible will get to the next level,

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take that inflection point and be the force behind your growth.

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We are helping companies that have at least $3 million of

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EBITDA, around $10 million of revenue, and we

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are positioned to help you get institutional growth capital

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or to negotiate deals with strategic partners.

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If you go to integritysq.com

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isq you can see our capabilities. Deck Happy to set up a

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consultation at any time that is free of charge and we

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look forward to you helping solve obesity, loneliness and

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diabetes. Go halo.

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Sam.