1. Banking USA Inc.
Human Resources Division
Interoffice Memo
To: John Smith, CEO
From: Chris Snow, Director, Human Resources Division
Date: January 24, 2016
Subject: Improve Employee Health and Productivity: The Fitbit Wellness Program
Providing healthcare to employees is expensive. In the US alone, estimates
show that employers pay 30% of the total health costs through employee benefits
(Danna, 1999). By 2021, federal, state, and local government healthcare spending is
expected to reach nearly 50% of the national health expenditure (Keehan, 2012). Health
is a crucial component of employee productivity. Many factors contribute to decreased
health in workers such as work-related stressors and an inactive lifestyle. The Fitbit
wellness program initiative addresses the rising costs of healthcare, the need for
increased productivity, and the importance of employee health. Customers are the
foundation of Banking USA Inc. Employee relation with customers is the beginning of
customer loyalty. Thus, it is imperative that our employees are in a healthy state to
provide services.
Problem
Many of our employees lack the ability to provide customer service in a way that
mimics our company’s goals. The current way in which our employees work has several
problems:
1. The demands of the company can often be stressful, resulting in tired and
unproductive employees that reduce company productivity.
2. Health Care is offered to most of our employees, payout costs are steadily
increasing and will be reduced with an increase in overall employee health
3. Customers have reported a lack of energy by employees.
To elaborate, our employees spend the majority of the work day sitting in a desk
chair, which causes fatigue. Workers spend 40 hours or more per week on the job. The
amount of inactivity can lead to general health problems. Health care is offered to
employees, but costs are constantly increasing for employees as well as the company.
Improving the general health of our employees would reduce money spent by both the
company and employees. An internal survey, shown in Figure 1, conducted by the
An active
lifestyle is
important
to all.

2. Human Resources Division, shows 71% of employees reported feeling tired most days
at the office. Fatigued employees are unable to demonstrate their full potentials.
Therefore, adapting an active lifestyle would greatly increase employee work
productivity.
A key issue is that most of our employees live deskbound lifestyles. This can
lead to obesity. While there is no consensus in the scientific community that office work
correlates to obesity, an increasing number of our employees are overweight. In a
recent study, it was found that more than one-third of American adults are obese. It has
also been estimated that health care spending is up to 36 percent higher in obese
adults (Strum, 2002). These health issues correspond to rising healthcare costs for the
company. Obese workers file more compensation claims than employees of a healthy
weight. The increased spending associated with obesity is shown in Figure 2. While our
company is not footing billions of dollars in obesity related healthcare costs, we are
increasing our healthcare spending every year and the growing number of overweight
and obese workers is a large factor in this increase.
Figure 1: Self Reported Employees
Energy Levels
Reported being tired most
days (71%)
Reported normal levels of
energy most days (29%)

3. Figure 2
Proposed Solutions
The Human Resources (HR) Division proposes a three-step solution
to combat employee obesity and improve health in the workforce:
1. Implement a corporate wellness program through the Fitbit. Fitbit is an activity
tracker, allowing us to actively support our employees towards a healthier
lifestyle. The product will lead us to a healthier, happier, and more efficient work
environment. The introduction of the Fitbit must be seen as a positive initiative.
The HR division will distribute brochures about the program to all our
employees. We will also try to cater to the individual health needs of each
employee. Tying the product to employee benefits will incentivize them to
participate in the program.
2. Offer the participants a range of incentives based on monthly or yearly activity.
Employees who meet our goals in each period will be awarded with cash and
prizes. The HR division will collaborate with our employees to create a pool of
desirable rewards. Goals can be anything from walking a certain amount of
steps to sleeping a certain amount of hours over the month. The turnkey
software, provided free-of-charge by Fitbit, will allow us to track each individual’s
progress in real-time.
3. Analyzing feedback and making adjustments to the wellness program. The HR
division will gather feedback from our employees after a three- and six-month
period to gauge active participation. The results will help us determine the
A healthier,
happier,andmore
efficientwork
environment.

4. adjustments needed to improve the program and to further motivate the
employees.
Cost and Benefits Analysis
Our research department shows an overall advantage
of the costs to benefits of this program. A recent study found
that when wellness programs are introduced in the workplace,
medical care costs fall by $3.27 for every $1.00 spent.
(Baicker, 2010). Fitbit has agreed to bulk pricing of $67.00 per
Fitbit Flex. To further reduce costs, we recommend using a
cost-sharing plan with the participants of the program. We want to introduce the device
to 50,000 of our employees at larger Banking USA Inc. establishments for the initial
purchase. Once we receive and review the feedback from the first six-months of
program implementation, we will decide if program expansion will be necessary.
There are additional concerns regarding the real-time tracking of the Fitbit. These
concerns include violation of privacy, startup costs, and loss of interest over time. After
the program begins, employees and participants will have the choice to opt in or out of
the program. The information gathered by the Fitbit will be used only as a part of the
wellness program. Regarding startup costs, the payback from improved employee
performance and lowered health care costs will cover the initial expenditure. The
wellbeing of our employees is a long-term asset that will pay for itself. The HR division
will prioritize the wellness program in terms of our working environment. We will plan
and execute fun, creative, and engaging events to ensure the participants are
maximizing this opportunity.
Recommendation and Conclusion
Our department recommends that Banking USA Inc. implements the Fitbit
program as soon as possible. The Fitbit will show our employees that we are committed
to their health and wellness. We believe this program will increase employee morale
and build company loyalty. The program will also see a decrease in health care costs
related to obesity and an increase in productivity due to a revitalized workforce. If the
proposal is accepted, we will announce the wellness program to all employees through
meetings, newsletters, and word of mouth. I recommend our top executives sign up first
so the program will be seen in a favorable light that encourages participation. We
propose April 1st as the start date of the Fitbit wellness program. Your authorization is
requested by noon on February 15 to secure timely distribution of the Fitbit. I look
forward to discussing additional details about the program with you and answering any
questions you might have. You can reach me at chris@bankingusa.com.
Medical care
costs fall by
$3.27 forevery
$1.00 spent

5. Works Cited
Baicker, K., Cutler, D., & Song, Z. (2010). Workplace wellness programs can generate
savings. Health affairs, 29(2), 304-311.
http://content.healthaffairs.org/content/29/2/304.short
Danna, K., & Griffin, R. W. (1999). Health and well-being in the workplace: A review and
synthesis of the literature. Journal of management, 25(3), 357-384.
http://jom.sagepub.com/content/25/3/357.full.pdf+html
Keehan, S. P., Cuckler, G. A., Sisko, A. M., Madison, A. J., Smith, S. D., Lizonitz, J. M.,
... & Wolfe, C. J. (2012). National health expenditure projections: modest annual
growth until coverage expands and economic growth accelerates. Health Affairs,
10-1377.
http://content.healthaffairs.org/content/early/2012/06/11/hlthaff.2012.0404.short
Sturm, R. (2002). The effects of obesity, smoking, and drinking on medical problems
and costs. Health Affairs, 21(2), 245-253.
http://www.ncbi.nlm.nih.gov/pubmed/11900166