Date: July 30,2022

To: Asad Riaz, Supervisor

From: Manah hill, Finance Executive

Subject: Feasibility of the club membership for employees fitness and morale

The scheme aimed at improving employees fitness and morale is viable and can be implemented by
January 1, 2023. This report discusses the benefits of the chosen program, relevant costs, issues and
the time frames involved.

Background: Current issues in employees fitness and morale: we currently provide all the employees
with access to cafeteria and lunch that can be delivered upon request by in-house workers or
brought from home. The employees are also given lunch break for an hour during their 8 hour work
shift for lunch and other activities so that they can relax and fuel thier energy. This is flexible and the
timing varies for every employee. We also have a medical insurance policy in our company so
employees can feel a reduced burden when getting certain treatments for medical purposes.
However, complaints regarding the length of the lunch break being too small, lack of any activity to
do indoors or outdoors as the building is located in the middle of retail shops with no seating
arrangement or sports facilities and capacity of the cafeteria not being enough for even 15
employees at one time, are being received. After a brief report, my supervisor deemed the company
sponsored membership of a sports club most suitable.

Problems of the plan: Difficulty in getting employees to accept the plan: our biggest problem will be
getting employees to pay for the membership individually as it may seem expensive and unnecessary
to them which will make it hard for us to cover our membership subscription cost directly. However,
by communicating the benefits and motivating the employees as a whole we can solve this issue. In
addition we can provide them with additional discounts and side perks to motivate them.

Benefits of the plan: Appropriate use of the membership: the membership seeks to increase the
employees morale and fitness by providing all the facilities for sports, gym and ground for walking or
running free for use by those employees who have agreed to pay a small amount of monthly fees.
The membership to the club will be accessible after 1pm till 3 pm and accommodate all employees
at one time hence solving the capacity issue. This will help improve our reputation and allow us to be
known better in the market.

Cost of the plan: subscription fees: Our biggest cost will be the subscription fees which is 1.2 million
rupees annually that the company will have to pay. The company must be in profit and this will
depend on the employees paying for the membership as well. Indirect costs including additional
company workers to be appointed at the club for monitoring and security which will be 10,000 Rs.

Time frame: The entire program will take one month as the subscription fees payments by the
company will be reviewed in detail by the senior management first. By September 10, 2022 all
employees will have access to it tentatively.