The negative impact on employees by closing the Fitness Center. The statistics below will be able to prove that by keeping the facility open will in turn improve the output of all departments. By implementing an exercise routine and mandatory usage of the facility, the benefits will greatly outweigh the costs to run the facility. Through utilizing the statistics from the Claims Department and assistance from my administrative assistance Jane Thomas, I will be show that production will increase with a companywide Wellness Program.
I chose Mrs. Thomas to gather these facts for me due to her passion and love for the Fitness Center. Mr. Evans you gave me the opportunity to produce a positive impact that our fitness center has on our employees. I will be using the claim’s department numbers to show that there was an increase in production and decrease in days of work missed by sick employees. I had Mrs. Thomas compile the number for the previous 8 months and this is what she came up with. Over the past two years that employees have lower medical costs.
Twenty-five percent of the employees (62 people) using the facility twice a week showed medical costs of about $300 per person (total cost $18,600). The costs for the 10 percent of employees (25 people) who used the facility three times a week or more were only $100 a person (total cost $2,500). The remaining 65 percent of the employees (132 people) who never used the facility had medical bills of approximately $500 per person (total cost $81,500). Fitness Center users missed half as many days of work as non users.
Users missed an average of six days a year, whereas non-users missed twelve days. Scientific studies prove that exercising improves people’s health. By doing a physical exercise for thirty minutes a day can improve one’s attitude at work and relieves stress. These two factors can improve one’s thought process and decreases the level of health risks (Armstrong, 2009). If the company would begin an exercise program for the employees, getting them into a routine, the amount of medical costs would dramatically decrease.
My Claims Department has started a Wellness Program that in open to everyone in the department. Together by using motivation such as peer encouragement and team-building concepts to promote the Fitness Center usage. Since the Wellness Program started eight months ago our productivity has risen 18 percent, sick days decreased by 5 percent when compared to the previous eight-month period. Most of our departmental employees are using the facility at least twice a week.
The morale of the department is better than ever and some have even started support teams to encourage each other to continue their exercise programs. I have discussed the Wellness Program with colleagues in other parts if the company. I believe that increased use of the Fitness Center would benefit the firm, just as it did for my department. The approximate cost of the Fitness Center is $100,000 yearly. When compared to the Claims Department decrease of medical visits, sick days and production the numbers may seem minimal.
However, if we include each department in the company, take the same number of personnel as my department; you will see the amount saved yearly (see attachment). In the Claims Department alone, you can see the total amount spent for this year on medical claim is over $100,000. Our department has made a decrease in medical costs by 40 percent with only half departmental participation. Imagine what can be saved if we include half of the company into their own Departmental Wellness Program?
The company can have competitions between departments with percentage weight loss, strength categories like total pounds lifted. We can save money in the long run by using what we have not throwing it away for more office space. By utilizing the Fitness Center as a company tool versus an hindrance, we will reach higher production levels, encourage recruiting levels and overall keep our employees healthy and with our company for the long haul. I encourage you to look over the benefit that our Fitness Center has on our active employees and what can be gained by including others to do the same. Respectfully,