Fitness Center Report 2019 - 1

WORKPLACE FITNESS CENTER REPORT 2019

Drafted by:
James Bailey

Report issued April 30th, 2019

Created for Itasca Country Club INC.

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ABSTRACT

A healthy workplace environment is vital to a productive workforce. Employees do

much more than punch in, work, and punch out at the end of the day. Employees form bonds
with each other, socialize, and more. More companies now than ever before are taking action to
promote a healthy environment for their employees. One of the most popular and effective
methods of promoting health to employees is having an on-location fitness center for employee
use. The purpose of this report is to weigh the pros and cons of establishing a fitness center for a
company of over 200 employees, as well as risks of taking this course of action. It also serves to
convey meaningful data on other companies that tried this approach.
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Table Of Contents

ABSTRACT: page 2

TABLE OF CONTENTS: page 3

TRANSMITTAL: page 4

EXECUTIVE SUMMARY: page 5

FITNESS CENTER ANALYSIS: page 7

INTRODUCTION: page 7
ANALYSIS: page 10
CONCLUSION: page 11
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TRANSMITTAL

Attached to this document is Workplace Fitness Center 2019 which has been created on behalf of
the members of the Itasca Country Club board of sponsors. This report observes conditions in
the workplace environment and how the construction and maintenance of an on-location
employee fitness center for employees to use can improve them. This report explains the
benefits of an employee fitness center, as well as the downsides of it and the risks that need to be
taken in order to construct and maintain. This report also analyzes articles and studies of other
organizations that have taken this course of action, and the results of it.

The objective of this report is to spread information and awareness on our current employee
health conditions and costs, in hopes of increasing employee productivity and morale. Whether
it is using the fitness center daily, or taking part in community-based activity days, or riding
through the bicycle trails on the country club grounds, exercise is important for keeping
employees productive and engaged with their work.

If you have any questions, comments, or suggestions, please contact me through email at
Jbailey59@someEmail.com or call me during work hours at 222-223-3334.

James Bailey
James Bailey
Human Resources Assistant Manager
Itasca Country Club, INC
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EXECUTIVE SUMMARY

This report explores one method to increase the overall health and activeness of employees, as
well as create a more united workforce. This method being the construction of an on-location
fitness center for employee use throughout their work day. The purpose of this report is to
convince the head of operations as well as the Employee Health Department on why this fitness
center should be constructed. This report analyzes the benefits, risks, and negatives of this task
so that if it is agreed upon to follow through with it, we can have a better understanding of the
situation. This report analyzes statistics from companies such as Johnson & Johnson who have
taken this approach and observed the benefits.

There are several benefits to having an on-location employee fitness center. The most obvious
being that employees now have the ability to exercise at their place of work. Many of our
employees would be likely to use this fitness center, as the nearest public gym/wellness center is
almost half an hour’s drive from the country club. It would also be cheaper than subscribing to a
gym membership at other locations such as Planet Fitness. Employees would be more
productive at their job because they would be in better health. Another benefit is employee
longevity. Employees who are more active in their place of work are more likely to stay at that
occupation. Employees who stay at a job longer also feel more comfortable in their work
environment, which could help productivity. Another benefit would be the reduced expenses for
employee healthcare. A case study of Highmark Employee Wellness Programs on healthcare
costs shows that companies are paying more and more each year in employee health-related
costs. An employee fitness center is a multi-faceted solution for lowering costs in the company
that could pay for itself within a few years.

However, there are downsides to this proposition. The most evident being the large cost of
organizing and constructing the fitness center. The facility will need to include locker rooms, a
gym, aerobics room, as well as showers for employees to use. Land is less of a worry since the
country club has plenty of land around the golf course but building such a structure is no small
task. Budget will be key in the acquisition of exercise machines including; squat racks, bench
presses, exercise bikes, treadmills, and free-weights. The building has to be large enough to be
utilized for a multitude of diverse activities to encourage employee use. We also need to confer
with the employees themselves to see how we can fit their needs. Budget is key in a project like
this, and one way to save money is to buy used exercise equipment. Stores such as play-it-again
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sports have a plethora of fitness gear and machines, and park district gyms donate exercise
equipment as well.

One major risk in having an on-location fitness center is injury and liability. Employees who are
not properly trained with gym machinery may seriously hurt themselves if they are unsupervised.
And with a workforce of over 200 staff, accidents are prone to happen. However, this can be
combated by proper training and teaching of how to use the equipment safely. This can be done
through hiring trainers onto the staff or observing instructional fitness videos. Another risk
would be employees not using the fitness center at all. This is less of a risk, as studies show that
the current general workforce is more health-conscious than previous generations, and more
people exercise than previous generations.

An on-location fitness center would be a positive addition to our company. The risks and
drawbacks, while important to keep in mind, are substantially overshadowed by the positives that
would become of it. By observing actions taken by companies faced with a similar situation, we
can take the steps to reduce costs and create a more effective and energetic workforce. We have
the available land and resources to construct the fitness center, as well as some of the necessary
facilities already, including a pool. This addition would also call for possible staff additions,
such as a personal trainer(s) for employees as well as someone to repair fitness equipment.
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WORKPLACE FITNESS CENTER ANALYSIS

Introduction

The workplace environment is essential in keeping employees healthy both physically and
socially. In an environment such as the Itasca Country Club, employees’ day to day tasks often
require some degree of physical fitness, such as cataloging and moving golf equipment. There
are also those who maintain the machinery and golf carts for the company. Increased physical
fitness would help keep these employees capable and engaged in providing their services. Costs
of paying for employee healthcare have increased as time goes on, so eliminating these
unnecessary costs is of utmost importance. A study shown to support this was conducted for
Johnson & Johnson Inc. in 2009. The results of which are shown below:

After incorporating a fitness center and encouraging activity to employees at several key
locations, Johnson & Johnson’s financial analysts observed savings of $535 per employee for
that year. Savings like these, although on a smaller scale because we are a smaller organization,
would still reduce employee costs greatly.
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Maintaining a healthy workforce is also important to a service-based company such as ourselves.

Employees who are more physically fit also have higher energy levels and are found to be the
some of the most productive members of the workforce. A study by the United States
Department of Labor shows the results of a collection of different fitness programs created by
companies with a similar goal to us in mind:

Highmark, INC is a company known for orchestrating wellness and fitness initiatives for
businesses and companies. The aim of their fitness programs is to reduce the employer’s costs
they pay for employee healthcare. Employees who maintain a state of good physical fitness
generally have fewer hospital visits than someone less physically capable. If we can keep as
many of our employees out of the hospital as possible, less of our revenue will go towards these
costs. With rising hospital costs, healthcare costs will naturally rise as well. The following
graph displays the rise in cost of healthcare participants for employers following a fitness plan
versus those who do not:
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The results of a fitness program for employees such as Highmark are astonishing. Costs are
reduced greatly because employees visit the hospital less frequently. The results of a four year
fitness program are shown below:
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Analysis

Establishing a fitness center would be extremely beneficial to our company. Not only are these
benefits monetary, but also observable in the workplace. Employees engaged in the fitness
center and other activities will feel more connected with their colleagues, and also feel more
comfortable at work. A fit staff will boost productivity during the work day, and also bring
employees together more. As seen in the following graph, 38% percent of all employees in the
United States are overweight. Those who are overweight are several more times likely to incur
increased medical expenses.

There are drawbacks to this plan of action, however. The up-front cost of building the fitness
center will no doubt be expensive, but employee fitness is a long-term investment. There are
several construction contractors in the area, and we have the necessary land and funds to follow
through with the project. Another drawback will be employee injury. As employees get used to
the fitness center, everything may not go perfectly. It is possible for employees to injure
themselves exercising if they are unsupervised of unaware of how to use the equipment. With
proper training and teaching, this can be overcome. It will also be required to hire someone who
can maintain the equipment so employees remain safe.
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CONCLUSION

An efficient, content workforce is key for success in the business world. With costs of employee
healthcare rising by the year, changes need to be made in order to stay competitive. Constructing
an on-location employee fitness center will accomplish this. Employees will have more energy,
be more engaged with their job as well as each other, and they will have a place to socialize.
This fitness center would reduce expenses greatly, and also make us more desirable to potential
employees. The largest hurdle is the construction of the fitness center itself, which if executed
properly, would not present too big a challenge. If the decision is made to follow through with
this, then we will likely need new staff to maintain the fitness center as well as instruct the
current staff on how to use it.
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REFERENCES

Black, Alxandra. “Five Reasons Employee Wellness Is Worth the Investment.” News & Events |
Health.gov, 7 Nov. 2018, health.gov/news/blog/2017/05/five-reasons-employee-wellness-is-
worth-the-investment/.

Henke, Rachel M. “Recent Experience In Health Promotion At Johnson & Johnson: Lower
Health Spending, Strong Return On Investment.” Health Affairs, Feb. 2011,
www.healthaffairs.org/doi/full/10.1377/hlthaff.2010.0806.

Naydeck, Barbara L. “The Impact of the Highmark Employee Wellness Programs on 4-Year
Healthcare Costs.” Highmark Wlellness Program,
origin.healthyworkplaceproject.com.cn/media/134768/case study overall highmark wellness pgm
roi.pdf.

theirf.org/am-site/media/energizing-workplace-wellness-programs-the-role-of-incentives-and-
recognition.png