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Onsite Fitness Center Proposal

The director of human resources proposes building an onsite fitness center to improve employee health and reduce healthcare costs. Healthcare expenditures for employees have risen 4% annually, costing employers $880 billion per year. Inactivity at work contributes to health issues for 86% of American workers, costing over $500 billion per year in lost productivity from absences. An onsite fitness center coupled with an employee wellness program could reduce healthcare costs by encouraging exercise. Companies see a $6 return for every $1 invested when employees engage in wellness programs that promote non-sedentary lifestyles. The proposal aims to lower costs from healthcare, absences, and boost employee retention through improved health.

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10 views2 pages

Onsite Fitness Center Proposal

The director of human resources proposes building an onsite fitness center to improve employee health and reduce healthcare costs. Healthcare expenditures for employees have risen 4% annually, costing employers $880 billion per year. Inactivity at work contributes to health issues for 86% of American workers, costing over $500 billion per year in lost productivity from absences. An onsite fitness center coupled with an employee wellness program could reduce healthcare costs by encouraging exercise. Companies see a $6 return for every $1 invested when employees engage in wellness programs that promote non-sedentary lifestyles. The proposal aims to lower costs from healthcare, absences, and boost employee retention through improved health.

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© All Rights Reserved
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PWN Health

Memorandum
To: John Max, CEO of PWN Health
From: Director of Human Resources
Date: November 13, 2020
Subject: Fitness Center Proposal

A failure to meet the business’s annual projected earnings has prompted a thorough analysis on
causative factors. The data shows that a potential area affecting earnings is the indirect costs of
employee health. The average cost of employee healthcare has risen by 4% from 2018 to 2019
and is expected to increase again in the next year. In order to prevent an exponential growth in
healthcare costs, certain measures must be taken.

Approximately 86% of American workers remain seated for the duration of the shift. An increase
in health risks associated with sitting for prolonged periods of time include muscular-skeletal
disorders, obesity, heart disease, diabetes, etc. Employees who suffer from these conditions as a
result of their work environment or as pre-existing conditions create the highest costs in terms of
healthcare expenditure, absenteeism, and decreased productivity. US Employers spend nearly
$880 billion annually in employee health benefits. On top of this, they suffer over a $500 billion
loss per year due to illness-related reduction in productivity and a loss of 1.4 billion workdays
per year due to health-related absences. In contrast, healthy employees cost employers about
50% less in healthcare compared to their less healthy counterparts. Individuals who exercise
regular are shown to have less health complications, greater focus, and improved mental health.
With all the available evidence, onsite fitness centers have been gaining in popularity amongst
employers in all fields.
Building an onsite fitness facility is only a part of the solution. Corporate-wide health promotion
is key to the success of this initiative. Many companies do not see their return on investment in
these corporate gyms due to low engagement and participation. The implementation of an
employee wellness program will encourage employees to utilize the onsite fitness center. By
rewarding employees for their involvement and promoting non-sedentary lifestyle changes, the
company will experience a great reduction on healthcare costs with an eventual return on
investment of $6 for every $1 spent.

The creation of an onsite fitness center coupled with an appealing employee incentive program
will help lower healthcare expenses, losses in productive, and employee absences. Such a
solution will also help increase employee retention and satisfaction. Employees are the backbone
of a successful company and caring for the staff solidifies our reputation as a quality employer.
References:
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