Persuasive Essay Rocky Mountain Mutual

Persuasive Essay on Fitness Center at Rocky Mountain Mutual Insurance Company

To: Mr. Zachary Evans, Vice President of Operations

From: Joseph Mirola

Date: 14/7/2015

Subject: Profit and benefits of having Company Fitness Center

Thank you for giving me the opportunity to explain the advantages of having company’s own fitness center. As I said to you in the meeting last week, I want to highlight the benefits of the company fitness center both in tangible and intangible aspects. Company reports reveals that the fitness center has led to an overall decrease in employee absenteeism, reduction in employee medical bill as insurance and an increase in productivity at work. I did extensive research about the value of the fitness center for the past eight months and did launch a new wellness program to encourage employees to use the center during this time period and found its great benefits from employee perspective as well as from company perspective. I will explain my findings below and will try to respond to your concerns regarding the fitness center.

One of the main concern of last week’s meeting was cost. Just three years ago we invested almost $1 million to build the fitness center. This cost has been shown as the substantial capital expenditure in the balance sheet over the time. It would be unwise to shut it down now as we have to allocate $333k as fixed costs for the past three years balance sheets. Shareholders would not be happy because this fixed costs would not improve profits from the balance sheet point of view. Also as the fitness center requires $100000 to be maintained annually, consider the savings in medical costs, absenteeism and productivity which will eventually add value to the company. Currently, out of 250 employees, 25 employees use the fitness center frequently, 62 employees use it occasionally and 163 users do not use it at all.

* The average medical costs for non-users i.e. 65% of the employees are $500/employee/year which is...