From: Joseph Mirola, Head of Claims Dept
Date: Sept 9 2013
Subject: Those are why you should maintain the fitness center
Dear Mr. Evans
As discussed in our meeting last week, I understand that you have some reasons to close the fitness center (FC). As a regular user, I was greatly benefited from using the fitness center. During the past 8 months, I have instituted a new program to encourage the use of the center and have seen great benefits. I will present my findings in response to some of your concerns.
Firstly, you concern that the fitness center serves a minority of the employees. Statistics shows that after 3 years of opening, about 35% of our staff have become regular users. These early adopters will be the key element to attract their peers joining in FC. We must now focus on providing incentives to other employees in order to be profitable. Our “Wellness Program”, using peer encouragement and team-building concepts to promote use of fitness center, has increased the number of Users from 35% to almost a 100%. I believe that by instituting this program widely in the company, the other parts can achieve the same result as We did.
Secondly, you worry that the cost to maintain the fitness center is to big. The fitness center was built three years ago at $1 Mil. If we shut it now, it would cost $300k for each year of its operation. Furthermore, the place was originally built as a fitness center, I really do not if it is conversable to CISD and if the cost will outweigh benefit for such conversion. Looking at the greater picture, instituting our” Wellness Program” shows that productivity was up 18% and absenteeism reduced up to 5%. If this is true applied to the whole companies, the benefit for maintaining the fitness center is far more than its cost. | Current | Medical Costs to employee | Sick days | Instituting “Wellness Program” | Freq Users | 25 (10%) | $100/year | 6 | About 100% userProductivity up