FELLOWES FITNESS INITIATIVE

DECEMBER 9

Fellowes Brands
Authored by: Silvestre Quintanilla

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Abstract
It is a proven fact that we spend a third of our lives working. This means there is not
enough time for much else, not even time to work out. In my research for methods to improve
the overall health of the workplace, I have found that several companies have implemented
new health-conscious programs for its employees. These new programs offer a vast amount
of benefits to improve the overall health of their employees. In a recent assessment made by
our human resources department, the results showed that we are almost paying half a million
in premiums and injury benefits combined. This is something that is worth reviewing. After
careful consideration, I have come to the conclusion that our company would benefit greatly if
a fitness center is available for us before and after our work-shift hours. The following is a
report on various factors to consider when building an onsite fitness center, it will include pros
and cons and case studies supporting the benefits. As you can see this is something to
carefully examine due to the cost and risks associated and I believe the benefits outweigh the
risks and that is worth considering.

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Table Of Contents

ABSTRACT ………………………………………………………………………………..…….…….2

TABLE OF CONTENTS ……………………………………………………………………….……..3

MEMO ………………………………………………………………………………………………….4

EXECUTIVE SUMMARY ...…………………………………………………………………………..5

INTRODUCTION ..…………………………………………………………………………………….6

BENEFITS …………………………………………………………………………………………….7

RISKS …………………………………………………………………………………………………..8

COSTS …………………………………………………………………………………………………9

DESIGN ………………………………………………………………………………………………..9

CASE STUDIES. ………………………………………………………………………………….…10

REFERENCES……………………………………………………………………………………….11

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Memo
To: John Fellowes
From: Silvestre Quintanilla
CC:
Subject: Onsite Fitness Center

Dr. Mr. Fellowes,

Attached you will find the report which includes many elements to consider with building an
onsite fitness center. It offers a friendly solution to our current situation with insurance costs
and work-related injury compensation benefits.

The report includes pros and cons and the many risks involved that may present themselves
in the future. Although there are many risks associated, I have included case studies of other
companies who took similar steps and have improved their work environment. It provides an
informational scope for us on how our employees could benefit if we took the necessary
steps to building an onsite fitness center.

It is my objective to provide you with all the factors and information necessary to ultimately
reach a decision. I understand there is plenty of variables to consider before making this
decision, but I believe having the fitness center available for us can improve the overall work
environment and essentially reduce healthcare costs.

I Look forward to discussing further on the subject at your earliest convenience. You can
reach me at (630) 618-1181 or at my extension 8455. You may also email me at
Hilfidure711@yahoo.com with any questions or concerns.

Regards,

Silvestre Quintanilla

Silvestre Quintanilla
Fellowes Brands
Itasca IL, 60143

Executive Summary
This report includes a lot of information pertaining to how fitness is incorporated into the
business culture. It examines the benefits and risks associated with the development of an
onsite fitness center. The report also provides an example of how companies like Google and
Zappos have thrived implementing new views on employee’s wellbeing.

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How will this help Fellowes you ask? Let me begin by telling you that a healthy employee is a
happy employee. A healthier employee is more likely to be productive and will miss fewer
days of work due to illness and/or injury. Finally, and most importantly, the healthcare costs
will be reduced. This facility in addition to our preexisting wellness program is a great way to
introduce fitness in the workplace culture.

Is there any risk? Just like any other decision, you will make in your life there will always be
risks. We will have the possibilities of injuries. Possibly raise our premiums initially, but do
not let this deter you because ultimately in the long run it will decrease our overall healthcare
costs. We can implement waivers after proper training which could release any kind of liability
towards our company.

Will this decision be expensive? Yes, building anything from the ground up takes lots of time
and resources, but I see this as an investment which will be cost-effective in the long run.
What's more expensive is the money we will have to pay out in insurance premiums and
injury benefits. I believe this is a risk we must take because we cannot continue the uphill
trend with company costs.

With all the information obtained it is my professional recommendation to immediately build

an onsite fitness center in our Itasca manufacturing headquarters. We have the resources
available, the research behind it, and motivation to solve our growing concern with our
healthcare costs.

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Introduction
Workplace culture is often fast-paced,
constantly changing and employees are
often expected to adapt to customer
demands. In an era where time is
money, employees must be efficient
and ready for whatever task presents
itself. To perform accordingly, one must
be physically and emotionally fit. An
option companies could assist its
employees with would be by providing
an onsite fitness center. Though it
sounds unprofitable, it is a solution that
would prove cost-effective in the long
term.
Figure 1.1 Companies that offer Fitness Perks

In the 21st century, there have been plenty of companies who have followed this idea such as
Apple, Reebok, and Under Armour. Its modern companies like this which are breaking
traditional beliefs and investing in the health of their employees. Figure 1.1 shows just a few
companies that offer other fitness services.

Fellowes has proven it can withstand any type of economic climate, especially with its track
record of 100 years of service. However, just like our predecessors we too must adapt and
find new ways to thrive and succeed. I believe we too must adapt and give our employees a
place to work out to help them live healthier lives.

This report is going to explain in detail where the center could be built, the benefits of it and
the benefits of having a healthier employee. There also will be research supporting and
opposing the idea, ultimately giving the owner enough information to decide if building a
fitness center is something beneficial to the company.

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 Overall Analysis

Benefits
It is no secret that fitness improves the overall health of the mind and body. Working out does
much more than that, it trickles down into our everyday lives especially at work. In an online
article on corporatewellnessmagazine.com, it states that there are five main benefits to the
workplace fitness culture. Fitness in the workplace creates less absenteeism, less stress,
encourages better work performance, fosters teamwork, and lowers health care costs.

Lowering healthcare costs is something worth looking into as our company pays almost half a
million a year in premiums and work-related injury compensation benefits. Research also
shows that employers who offer wellness programs have a lower turnover rate. One example
is the Biltmore Tourism Organization, they reported their company turnover rate down from
19% to 9% in just four years after they began offering wellness programs to its employees.
As you can see this is not something that will happen overnight but once we implement these
changes we will begin to see the benefits over time.

Figure 1.2 displays how much a

company saves per dollar invested in
wellness programs. Now, if you added
all our 300 employees and invested $1
dollar per employee on wellness
programs. The return in medical costs
alone is $1,179 dollars. This is
something Fellowes could benefit from
and this money could be used to better
our facilities.
Figure 1.2 Company Savings Per dollar invested in employee.

Most importantly, if the employee is in better health, this means our insurance premiums
would decrease and in turn, our work-related injury claims and benefits payouts would also
decrease. It is very important that we pay close attention to this since our projected payouts
are expected to double within the next five years. Most of the research shown explains
wellness programs, but I believe we should take one step further and build an onsite fitness
center. This would save employees money on gym memberships and give them the
opportunity to improve their health and well-being.

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 Risks
Just like the infinite possibilities one can benefit
from fitness in the workplace, there are limitless
risks associated with it. For example, there is a
high probability of slip, trips, and falls. This
possibility is very vague and can happen
anywhere but having a fitness center in the
workplace put us at a higher risk of injury. This
would mean liability issues, we would be
responsible for paying injury related issues such
as time off. Fellowes would have to balance
exercise versus risk.

There are many things one can do to balance the

risks. We could properly train the employees on using the exercise equipment. Have an
onsite fitness expert who could properly educate employees on how to adequately use the
fitness equipment. After training, have them sign a waiver explaining they were properly
taught and releasing the company from any liability should they become injured.

Aside from slips and trips, there is also the risk of strains and sprains. This may result in time
off and decreased productivity. In an online article on prnnewswire.com, called “Five Hidden
Risks Faced by Fitness Centers,” it states that treadmills are the number one injury-related
risk in fitness centers. It also states that the average cost for a treadmill related accident is
about $250,000 dollars. Although there are ways to manage this risk, there is always that
lingering possibility of exposing ourselves to the danger.

In wanting to give our employees incentives and a place to work out, we run the risk of
building this center and the employees not using it. This would result in a loss of hard earned
money and ultimately be a waste of space. Although this is a real scenario, I strongly believe
if we implemented incentives for those who use the fitness center, this problem could be
prevented. Since we already offer wellness programs, building a fitness center would only
compliment the programs we already have in place.

In our search for a solution to one problem, we uncovered multiple risks associated with
wanting to build an on-site fitness center. Making the decision of whether or not to build the
center is not easy but in the end, it will positively impact the company.

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Costs
Starting a gym from the ground up takes a lot of time and effort. In my research I found out
that the average modest gym costs around $65,000 dollars. Although I expect we will not
incur such high costs it is still something to consider when we are planning to open a fitness
center. In order for you to use the fitness facility, you will have to be an employee.

As for space, Fellowes Itasca Facility has about 3,500 square feet of usable space. Paying
rent for an area will not be an expense we will have to cover. Just on that alone, we save a
couple grand a month. Our true costs will come with renovations and upgrades to the facility.

Treadmills, weight machines, building and equipment maintenance will have to be taken
under consideration. We do have maintenance personnel on the manufacturing floor with
plenty of knowledge of electronics and equipment repairs. They can be used for any repairs
for the machines. Treadmill and weight machines may be expensive to repair, we can
research where we could acquire replacement parts at an affordable price.

An additional employee will be required per shift to keep records of who visits the facility.
They will be expected to maintain and inspect equipment to make sure machines are running
properly.

Since showers and locker rooms are already available, we could use that money for more
equipment and the actual design of the center.

Design
I believe we should take the traditional route and include sections throughout the center. A
section for treadmills and ellipticals, another section for the weights.

The fitness center will have televisions throughout, allowing everyone to watch sports and
news if they choose to. I would like to see a positive environment and play uplifting music for
those that do not bring music to workout.

The center will offer towels and

antiseptic spray in order for employees
to clean off the machines once they
finish using them. Carpeted floors will
also be installed and gym mats for those
who wish to lay down and stretch.

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Case Studies
Below are two companies that have included wellness programs or have onsite fitness
centers with results of how these programs/facilities have affected their workplace.

Over the past couple of years, Google has become an increasingly

popular place to work. Mainly due to their innovative ways of running
their business like providing fitness classes, pools, and Ping-Pong
tables to use during breaks. There is no doubt that their orthodox
approach to corporate culture has gained them popularity and made
them into the company it is today. Fitness has become a key part in
the workplace culture and is successful because of it. Google has also
created a People and Innovation Lab (PiLab) which conducts research
from within. They try to find unique ways to improve the health of its employees. This is very
beneficial to them because it ultimately increases productivity and simultaneously decreasing
healthcare costs.

This company has the belief that fitness should be something that is
done voluntarily and not something that one should be imposed
upon. They offer free fitness memberships, free fitness classes, nap
rooms, and marathon reimbursements. Wellness Coordinator, Kelly
Maher has this activity called Wellness Adventures, where she likes
to take employees from random departments and take them on hour
long trips, like golf lessons, and laser tag. She tries to incorporate
fun into the everyday routine. This company is a prime example that one does not have to
follow what others are doing. They are taking employee wellness to a whole another level. In
turn, saving themselves millions of dollars in healthcare costs and having fun at the same
time.

There are thousands of companies which have tried the same approach and failed. I believe
it starts with how you present it and how far you are willing to involve it into the corporate
culture. It seems as of late that plenty of companies have implemented wellness programs
but ultimately it comes down to the presentation. You have to make wellness appealing
whether it be a pool like Google does or wellness adventures like Zappos.

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Conclusions and Recommendations
Building an onsite fitness center would benefit Fellowes because it would improve the overall
health of its employees and greatly reduce healthcare costs. Not only it would complement
the wellness program already in place but it would also boost morale by getting employees
motivated to work out. It will also promote teamwork by doing athletic activities together,
reduce absenteeism and finally improve employee productivity. After many hours of research,
I have found that the benefits do outweigh the risk, even if the new problems do present
themselves. Before researching my main goal was to gather all of the facts and find out if in
reality it was a great idea to build an onsite fitness center. I honestly do believe building a
fitness center will achieve our main goal which is reducing healthcare costs. I am confident I
have presented you with sufficient facts to make an informed decision. I believe anywhere in
our Itasca facility would be a great location because it already contains locker rooms,
showers, and sufficient empty warehouse space to build it.

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Refrences
Online Articles
VanDyke, M. (2018). Energizing Workplace Wellness Programs: The Role of Incentives and
Recognition | Research | The Incentive Research Foundation. [online] Theirf.org. Available at:
http://theirf.org/research/energizing-workplace-wellness-programs-the-role-of-incentives-and-
recognition/128/ [Accessed 2 Dec. 2018].

Drevits, T. (2018). The Five Benefits of Workplace Fitness Culture. [online] Corporate
Wellness Magazine. Available at: https://www.corporatewellnessmagazine.com/worksite-
wellness/five-benefits-workplace-fitness-culture/ [Accessed 2 Dec. 2018].

Sinclair, D. (2018). Exercise in the workplace — Managing the risk - The Work Place
Solution. [online] The Work Place Solution. Available at:
https://www.theworkplacesolution.com/exercise-workplace-managing-risk/ [Accessed 2 Dec.
2018].

Sage.com. (2018). How Much Does It Cost to Open a Gym? | Sage US. [online] Available at:
https://www.sage.com/en-us/accounting-software/startup-costs/gym/ [Accessed 2 Dec. 2018].

PLATFORM, I. (2018). 5 Fantastic Corporate Wellness Case Studies To Get Inspired By |

inKin. [online] Inkin. Available at: https://www.inkin.com/blog/en/5-Fantastic-Corporate-
Wellness-Case-Studies-To-Get-Inspired-By [Accessed 2 Dec. 2018].

Rothfeld, L. (2018). 7 companies with amazingly unique wellness programs. [online]

Mashable. Available at: https://mashable.com/2015/05/15/unique-corporate-wellness-
programs/#GgiSNBVEUEq8 [Accessed 2 Dec. 2018].

Exploreyork.org.uk. (2018). Discover Google Services | Explore York. [online] Available at:
https://www.exploreyork.org.uk/event/discover-google-services/ [Accessed 2 Dec. 2018].

Facebook.com. (2018). Zappos.com. [online] Available at: https://www.facebook.com/zappos/

[Accessed 2 Dec. 2018].

Pwsc.alaska.edu. (2018). Health & Fitness Center | | Price William Sound College. [online]
Available at: https://pwsc.alaska.edu/health-fitness-center/index.cshtml [Accessed 2 Dec.
2018].

Health24. (2018). Understanding back pain. [online] Available at:

https://www.health24.com/Medical/Backache/About-backache/understanding-back-pain-
20161212 [Accessed 2 Dec. 2018].

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