SAGE INC.

FITNESS CENTER
ANALYSIS 2017
Made by Sean Gutierrez

DECEMBER 1, 2017
SAGE INDUSTRIES
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Abstract
It is a given that some people live at their work. It might be dedication, duty to their chosen profession, or
an unfortunate buildup of tasks that cant be done in a typical work day. Many of these employees need
some sort of stimulation that does not stem from staring at a screen and sitting still for hours on end. This
report aims to create an inhouse fitness center that will help this sort ease themselves on their off time. The
report will address the negatives and the positives of an onsite fitness center, including cost and
physiological benefits for employees.
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Table of Contents

Contents
Abstract ......................................................................................................................................................... 1
Table of Contents .......................................................................................................................................... 2
Transmittal .................................................................................................................................................... 3
Executive Summary....................................................................................................................................... 4
Introduction .................................................................................................................................................. 5
Positives ........................................................................................................................................................ 5
Negatives....................................................................................................................................................... 7
Design............................................................................................................................................................ 7
Risks .............................................................................................................................................................. 8
Conclusion & Recommendations .................................................................................................................. 8
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Transmittal
Memo
Sage Fitness & Enterprise
To: Management
From: Sean Gutierrez
Subject: Fitness Center
Date: 10/20/17.

Dear Team,
Attached to this is a completed report of the upcoming fitness center project. It addresses the Boards
financial concerns as well as acknowledge the clear benefits for employees who take advantage of the
finished product.
The Report addresses the positives of the projects construction; design, finance and construction time, as
well as the advantages post-completion. In addition, it addresses the possible negatives to satisfy any
hesitant members with reassurances and case studies of similar projects.
It is my hope, as well as my teams, that this report makes an acceptable impression to you and the board.
Should you have any question or concerns, please contact me at Gutierresz123@sagefitness.com.
sincerely,

Sean Gutierrez
Vice Project Manager
Sage Fitness
123 Some St
Place, TM 60321
(123) 666-6666
Gutierresz123@sagefitness.com
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Executive Summary

This report will be going into extensive detail of a fitness center addition to the headquarters of Sage
Industries. In addition to research of the benefits of this project, we go over the phycological and
physical pluses the completed facility will have on the all the employees that take advantage of it. This
reports purpose is to convince the Board Committee on the question Why a fitness center? The
report will go over the express positives of the projects, the possible negatives, and the ever-present
risks associated with any project of this magnitude. The design of the building is briefly discussed, and
the why this benefits the company on a whole.

So, what are the benefits of a fitness center? There are many benefits to an on-site workplace fitness
center that can be enjoyed by the company and its employees. The company will receive a boost to its
reputation, as well as be seen as being expressly more attractive to new applicants looking for a better
job with benefits. The facility will be seen as an incentive as well to current employees to curb turnover
rates. Just as well, current employees will receive the advantage of using the fitness center to elevate
workplace stresses, like anxiety, as well as a means to keep up on physical exercises.

Initially, many of the glaring negatives will poke through at first, but they will quickly be overshadowed
by the numerous advantages that an onsite fitness center will provide. While, yes, this project will not
be cheap to build and maintain once the project reaches its completion, the post benefits it will provide
to employee wellness and productivity will match and exceed the downsides exponentially. In addition,
the upkeep of the gym will also provide some new jobs and positions to fill.

Finally, we will take a look at the risks that always accompany these project, one of the most prevalent
one being, What if we run out of money? Simply, we will introduce memberships post completion to
ensure that the fitness center turns up a steady profit. True, the money might come slowly, but the
profit will come.
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Analysis of a Workplace Fitness Center

Introduction
Since the time of Henry Ford and J.P. Morgan, the common workplace has become unrecognizable to
that of the mid-twentieth century. As Generation X handed off the corporate keys to millennials,
technology has progressed exponentially and took the modern
office design along with it to adapt to current culture and
aesthetics. Gone are the time of compact desk layouts and
typewriters. In its place, now modern desktops and spacious
cubicles designed to give employees legroom and space to
breath. But along with design has come changes to outdated
company policies. Teamwork, personal growth, productivity and
creativity are all encouraged and is meant to be nurtured by the
modern standards. Google and Amazon are prime examples of
this, and we here at Sage Industries are no acceptation to the
rule. And to remain current we, as a company, must always be
ready to adapt.

Sage Industries has grown steadily within the past 15 years.

From a small single floor in a leased office building with just
over 10 employees to now, 200 employees strong and 2 entire
building to accommodate. Since then, our computers have
become sleeker and faster to convince our workers. Since then,
our office space has shifted to leave our workers the breathing
room they deserve. And since then, our company polices have
shifted and changed to meet the needs of our work-force. So
how do we continue to adapt and persist in the current world?
Simply put, the creation of an on-site fitness center; one of
which both the employee and the company could benefit from.
In this report, we will go over these benefits, as well as some of
the risks involved with the undertaking of creating an onsite
fitness center.

Positives
There are many positives that stem from an onsite fitness Figure 1
center that work in ways to benefit both employee and
Application of Ergonomics
company alike. In terms of company image, it will only help to
improve us. In standing, it makes Sage Industries look much
more appealing to applicants, and attracted better qualified employees to our office positions. Just as
well, it can lead to our company strengthening employer-employee relations, such as Google has.
According to Fast Company, Google considers its relationships with there employees as the driving force
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of their performance and dominance in the industry. The

presence of an on-site fitness center alone is a perfect tool to
incentivize applicants and currently employed workers to remain
for the benefit alone.

Secondly would be how the onsite fitness center would benefit

our employees on a personal level. According to the NIOSH
(National Institute for Occupational Safety and Health) Report,
40% of workers believe their jobs to be very stressful and 26% of
workers say that they were often or very often burned out or
stressed by their work [load]. Workers that feel stress and
overworked will more often the not be less productive, and will
overall hurt the company.

A common counter-point often used is for a good application of

ergonomics. But even so, proper application of ergonomics can
only go so far as to satisfy workers physical needs day by day.
We, as humans and people, were not designed to remain seated
and stationary for routine hours a day. In fact, every time within
90 seconds of standing up-right, our systems begin to process
blood sugar, triglycerides, and cholesterol all molecular
mechanisms activated to simply help us carry our own body
weight (Mercola, 2015). Without a way to off-set this, we may
leave our employees to develop invisible illnesses in the future;
Figure 2
among them back pain, strained necks and shoulders, muscle
Sitting Disease degeneration, leg disorders, and at worst, lasting organ damage.

Not only would routine exercise nullify these risks, but it will so
help the mental health of the individual employee. See, it has been scientifically proven that Exercise
improves a persons mood, and helps elevate common workplace anxieties such as depression and
stress. As a rule of thumb, it is always best for a person to aim for at least 30 minutes of physical
exercise every day to avoid the symptoms above (Laskowski, 2016). With the inclusion of a fitness center
our employees will be able to work off their daily stresses, and reap the mental and physical benefits of
whatever exercise routine they choose. The convenience alone will provide better worker performance.
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Negatives
Fair to opposed voices, there are downsides to a project like this. My team and I firmly believe that the
positives far out way the negatives, but it is always wise to address them.

One of the main difficulties to be had will be build an onsite fitness center will be its construction, both
cost and position of the new building. A full sized and fully stocked fitness center will require ample
space to occupy and operate. Along with that, new plumbing and water piping will be required to create
to new bathrooms and shower that our employees will need after a workout. Equipment, will of course
be needed. Treadmills, bench presses, Olympic bikes, etc. Employee input will be implemented to see
what equipment is favorable, so equipment will be one of the more malleable expenses of the project.
Just as well, new sanitation personnel will need to be hired and/or reassigned to accommodate a new
building, as well as its purpose.

In essence, keeping the new sanitation workers and utility will be the only long-term expenses that will
come from post-completion of the product.

Design

Below is the proposed floor plan for the fitness center. As we have planned it, we hope to have the
majority of the treadmills by the window as then the employees will have a clear view of the outside.
The windows themselves will be placed by towards the north so the glare from the sun will be
minimized for both sunrise and sunset. Televisions will be placed around the walls of the gym, and few
to hang off from the ceiling. Two medium sized studios will be placed towards the back to hold Zumba
classes, or which ever activity would like
to be held there.
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Risks
Much like any massive project or undertaking like this, there are risks to be considered, obvious or
otherwise. One of the more glaring ones, and perhaps the most possible one, is for Sage Industries to
run out of money before the facility is complete. Our way around this is to charge for memberships from
employees and outside visitors. Sage Industries can charge $50 as an entrance fee and $20 per month
thereafter for nonemployees and 20$ entrance fee with $15 monthly charges for active employees. This
way we gain a steady profit from anyone who uses our gym while also providing incentive to our
employees to utilize our fitness center over other because of the discounted rate. Another potential risk
would be that the fitness center will fail post-completion. We fully believe that with proper planning, the
chance of that is next to none.

Conclusion & Recommendations

Our company is steadily growing and doesnt seem to be stopping anytime soon. Our purpose as
management is to accommodate this growth so we dont struggle under the weight of it. This fitness
center will not only benefit the growth of Sage Industries and its employees, but it will ensure that we
remain a competitor to our rivals by utilizing the good health, mental and physical, of our employees.

As stated before, with proper use and design, we can ensure that our employees remain in top form, as
well as attract future generations to our name.
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References
Mercola, D (May 08, 2015). Heres what Sitting Too Long Does to Your Body. Retrieved from
https://fitness.mercola.com/sites/fitness/archive/2015/05/08/sitting-too-long.aspx

Harvard, (February 2010). Mental Health problems in the workplace. Retrieved from
https://www.health.harvard.edu/newsletter_article/mental-health-problems-in-the-workplace

Tracer, Z (September 19, 2017. Rising Health-Insurance Costs Are Eating Into Employees' Paycheck Gains.
Retrieved from https://www.bloomberg.com/news/articles/2017-09-19/rising-health-insurance-costs-
blunt-employees-paycheck-gains

Laskowski, E. R. (August 20, 2016). How much should the average adult exercise every day? Retrieved
from https://www.mayoclinic.org/healthy-lifestyle/fitness/expert-answers/exercise/faq-20057916

Crowley, M. C. (March 21, 2013) Not A Happy Accident: How Google Deliberately Designs Workplace
Satisfaction. Retrieved from https://www.fastcompany.com/3007268/not-happy-accident-how-google-
deliberately-designs-workplace-satisfaction

The National Institute for Occupational Safety and Health (1999) STRESS...At Work.
https://www.cdc.gov/niosh/docs/99-101/