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Fitness Center Proposal: Costs & Benefits

The company is facing rising healthcare costs for employees, which doubled from $6,500 to $13,000 per employee last year. To address this, the memo proposes establishing an on-site fitness center that could help employees lead healthier lifestyles. Studies show exercise relieves stress and increases productivity. The fitness center could benefit employees and lower healthcare costs, while also generating revenue. Potential risks include employees not participating and difficulty generating revenue, but these could be addressed by making the center open to the public. The initial cost would be $500,000 along with part-time trainers and staff.

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5 views1 page

Fitness Center Proposal: Costs & Benefits

The company is facing rising healthcare costs for employees, which doubled from $6,500 to $13,000 per employee last year. To address this, the memo proposes establishing an on-site fitness center that could help employees lead healthier lifestyles. Studies show exercise relieves stress and increases productivity. The fitness center could benefit employees and lower healthcare costs, while also generating revenue. Potential risks include employees not participating and difficulty generating revenue, but these could be addressed by making the center open to the public. The initial cost would be $500,000 along with part-time trainers and staff.

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To: Executive officer, Safety Manager

From: Eric Garcia


Sent: July 7th, 2019
Subject: Benefits, Risks, and Costs of a Fitness Center

Fitness Center

Recently, there has been an increasing number of new employees joining the company. The
main concern that has been arising is that the cost of health care for an employee has been
increasing at an alarming rate. In the previous year, the health care cost was $6,500 per
employee. This year’s cost has risen to $13,000, which is double from last year. If no action is
taken, we will continue to see this trend.

After some consideration, a method we can take to approach this situation is by establishing an
on-site fitness center. What this fitness center can do for the employees is make them have a
healthier lifestyle, for the 200 employees that we currently have. Studies have also shown that
due to exercise, it relives people of stress, and it would make them happier and more
productive. As you can see, this would benefit the employees as they would take advantage of
this fitness center, but it would also benefit us, as we can generate more revenue, and it can
also help lower the healthcare cost, if the employees were to use this fitness center.

Although, we could potentially face more problems with this concept. Main problem being that
the employees would not want to participate in this lifestyle, but hopefully, with it being
complementary, it can convince them to join. And there may be an issue with generating
revenue, but this can be easily resolved by opening the fitness center out to the public.

The initial cost of this fitness center would be $500,000, along side with trainers and employees
that would maintain the fitness center. These employees would be paid by the hourly wage and
they would be considered part time.

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