Megamind Inc.

330 Sen. Gil Puyat Ave., Makati City

P R O J E C T

P R O P O S A L

FROM: Jade Silva Internal Auditor Accounting Department

TO: Lorenzo Icasiano Senior Vice President Human Resources Department Megamind Inc.

Mr. Icasiano: As we all know, human capital will always be the biggest asset of any business. Employees are central to the smooth functioning of a business and to provide quality service. One of the greatest values that employees provide to a business is accumulated knowledge. Replacing an employee is much more expensive than the cost of recruitment. A long-term employee that leaves the business takes with him or her vast sum of knowledge and skills. The new employee has much to learn before it is possible to become fully productive.

Background and Purpose

Absenteeism and tardiness are one of the most that has an impact in our company performance. Some identified causes are legitimatepersonal illness or family issues, for examplebut they can often be traced to other factors such as a poor work environment or workers who are not committed to their jobs. If such behaviors become excessive, they can have a seriously adverse impact on our business's operations and, ultimately, its profitability.

Main Problem
Accumulated reports regarding our company summarize that absenteeism and tardiness among our employees increases abruptly since last year. According to research conducted, the most common causes of these are unhealthy lifestyle and low employee morale.

Proposed Project
Implementing a wellness program in our corporate culture will not just decrease the companys health care costs, but also, it will increase our employees productivity and morale.

Project Description
Not only would a wellness program substantially reduce costs associated with employee health care, but our company would prosper through many other benefits. Businesses that have wellness programs show a lower cost in production, fewer sick days, and healthier employees. Our healthier employees will help to cut not only our production and absenteeism costs but also potential costs such as higher turnover because of low employee morale.

Project Implementation
Implementing a good wellness program means making small changes to the work environment, starting with a series of information sessions. Simple changes to our work environment should include healthier food selections in vending machines and in the employee cafeteria. A smoke-free environment, inside and outside the building, could be a new company policy. An important step is to educate our employees through information seminars and provide health care guides and pamphlets for work and home. In addition, the human resources department could expand the current employee assistance program by developing online materials that help employees and their families to assess their individual health goals. Each health program is different in its own way, and there are a variety of programs that can be designed to meet the needs of our individual employees. Some programs that are becoming increasingly popular in the workplace are the following: health promotion programs subsidized health club membership return-to-work programs health-risk appraisals and screenings

For this project, six-month trial implementation will be sufficient to see the improvements among our employees behavior regarding their absenteeism and tardiness. During such period, monthly evaluation will be conducted.

Possible Risks and Consequences

The largest barrier in a wellness program is changing the habits and behaviors of our employees. Various incentives such as monetary bonuses, vacation days, merchandise rewards, recognition, and appreciation help to instill new habits and attitudes. Providing a healthy environment and including family in certain programs also help to encourage healthier choices and behaviors. The costs of incorporating a wellness program will be far less than rising costs associated with health care in the long run. An employees sense of recognition, appreciation, or accomplishment is an incentive that has relatively low or no costs. Research showed that a certain company who implemented a wellness program a year ago gained financially after providing programs including free healthy lunches for employees. Researcher believes that higher morale and keeping valuable employees have helped his business tremendously. This wellness program will not just resolve our companys current issues but also it will give our employees a long run benefit. It is important that we value our strongest assets in every way possible. To maintain our lead in the industry, we must continue not just in giving the best to our customers, but also in making our companys employees the best and at the top of their game. Thank you for your time, and Im looking forward to discuss this matter further with you next week.

Jade Silva Internal Auditor