Episode #565: Building Winning Teams in Fitness-Tom Johnston on Talent Optimization and Employee Engagement

On today’s episode, Founder of Integrity Square and HALO Talks host Pete Moore sits down with longtime friend and Talent Optimizer Group founder, Tom Johnston. They dive deep into the power of talent optimization and why having the right people in the right seats is the ultimate game-changer for HALO (Health, Active Lifestyle, Outdoors) sector businesses. Tom unpacks how health clubs can move beyond traditional hiring practices, bring rigor to their people strategy, and use data-driven insights—like employee engagement surveys and behavioral assessments—to build winning, high-performing teams.

From real-world case studies with leaders like Club 16’s Trevor Linden to practical advice on boosting employee retention and preparing your business for sale, this episode is packed with actionable strategies to help club owners turn their workforce into a true differentiator. Whether you’re scaling up, planning an exit, or just want more engaged employees and less churn, you’ll get an inside look at the role of compassionate leadership and systematic talent development.

On bridging the gap between 'business strategy' and 'people strategy,' Johnston states, "Most organizations have a business strategy. They know what results they're looking to achieve, but they don't necessarily have a people strategy. There's a discipline around how we go about hiring the right people for the right role, and how we go about retaining talent."

Key themes discussed

• Importance of talent optimization in business strategy.
• Building and retaining a high-performing team.
• Role of data and surveys in employee engagement.
• Value of organizational transparency and action.
• Impact of employee retention on company valuation.
• Process of talent acquisition and onboarding.
• Significance of compassionate leadership for team success.

A few key takeaways: 

1. Talent Optimization Is a Discipline, Not a Buzzword: Tom emphasizes that talent optimization goes beyond simple recruiting—it’s about aligning "business strategy" with a well-thought-out "people strategy." This means intentionally hiring, retaining, and developing employees to match organizational goals, much like building a high-performing sports team.

2. Data-Driven Approaches Improve Employee Engagement: Tom discusses using tools like the Predictive Index to survey and assess team fit, manager-employee relationships, and overall engagement. These surveys, which are anonymous and concise, provide actionable insights leaders can use to improve employee satisfaction and retention.

3. Cultural Fit and Leadership Matter Just as Much as Skills: It’s not just about a person’s resume (“the briefcase”); hiring should prioritize behavioral fit (“the head”) and passion or values alignment (“the heart.”) Compassionate leadership and a focus on psychological safety foster a winning, loyal team.

4. Optimizing Talent Directly Impacts the Bottom Line: Tom shares case studies (like Club 16) illustrating how improved organizational structure and engagement have led to multi-million dollar gains. Reducing turnover, maximizing existing payroll, and scalable talent systems translate into real, measurable financial value—especially important when positioning a company for sale.

5. Winning Cultures Are Built on Transparency and Action: Both Pete and Tom stress the need for leaders to be transparent with teams—sharing survey results, explaining the “why” behind changes, and taking meaningful action. This not only helps employees feel seen and valued, but also drives consistent improvement and business success.

Resources: 

• Tom Johnston: https://www.linkedin.com/in/thomassjohnston 
• Talent Optimizer Group: https://www.talentoptimizergroup.com 
• Club 16 Case Study: https://talentoptimizergroup.com/case-study 
• Integrity Square: https://www.integritysq.com 
• Prospect Wizard: https://www.theprospectwizard.com 
• Promotion Vault: http://www.promotionvault.com
• HigherDose: http://www.higherdose.com