146 PART THREE PRINCIPLES FOR BUSINESS MESSAGES FIGURE 5.7 Underlining is added to distinguish between facts, conclusions, and positions. Refer to Figure 5.6 to see how the Latisha's Memo to Justify a Wellness Program planned message structure matches the final document. To: From: Date: Subject: Jeff Brody, Personnel Director Latisha Jackson, Intern June 14, 2015 Increasing Profitability with a Corporate Wellness Program Thank you for giving me a few weeks to provide you with some additional information about how wellness programs could benefit Eastmond. Based on a cash flow estimate from Lisa Johnson in Finance and other studies about corporate wellness programs, we can be confident that a wellness program here at Eastmond would increase profitability. A wellness program would directly reduce health care costs and indirectly increase revenue through lower absenteeism and higher productivity. $400k $300k $200k $100k Sk -$100K -$200k Key Point 1. Most important key point placed first for emphasis. Reduced Expenses Due to Wellness Program Net Cash Flow Related to Investment in Wellness Program over First Six Years -$23k $84k $298k $298k $298k III Primary message as subject line and topic sentence. -$130k Year 1 Year 2 Year 3 Year 4 Year 5 Year 6 Assumptions: 1. Per-employee savings are 0% of health care costs ($10,700 annually) at Year 1;: 5% at Year 2; 10% at Year 3, 20% at Year 4 and after, 2. Per-employee costs to run a wellness program are $650 per year. Key Point 2A. Lisa Johnson's initial estimates show that Eastmond could achieve net savings of about $820,000 over the next six years by implementing a wellness program. She emphasized that her estimates are "safe" and "modest." In other words, she used assumptions that projected low-end savings and high-end expenses. She estimated that Eastmond would save approximately $1.6 million in health care costs over six years. It would cost approximately $780,000 to run and manage the wellness program over this time period (see Lisa's attached estimate for assumptions and other details). Increased Revenue Due to Wellness Program We can expect that a wellness program will reduce absenteeism A recent review of 56 scientific studies about corporate wellness average of 27 percent. In our case, the average employee takes programs showed that sick leave absenteeism was lowered by an seven sick leave days per year. Assuming a similar reduction in sick leave absenteeism for our 200 full-time employees, we would gain approximately 380 workdays per year from our employees. FIGURE 5.7 (Continued) Jeff Brody Key Point 2B. Key Point 2. Call to Action. CC: Effect ASO HO Page 2 June 14, 2015 We can also expect that a wellness program will increase productivity. Many studies have been conducted about improved productivity due to wellness programs, with productivity increases ranging between 2 and 52 percent. Regarding exercise, one recent study found that on days that employees exercised, their mental performance and time management were 15 percent better. Recommendation for Developing an Implementation Plan Please let me know when you would be able to meet. We could further discuss the estimates for how a wellness program could impact Eastmond. Also, if you think we should pursue the wellness program initiative, we could discuss an implementation plan. This plan would address some of the following issues: By reducing absenteeism and increasing productivity, a wellness program would indirectly increase revenue. Lisa explained that precisely estimating the exact value of lower absenteeism and higher productivity is difficult but that we would most likely increase revenue. As an example, she said that last year we turned down two major contracts worth nearly $100,000 due to a lack of personnel. Were we to have our employees working at their highest levels of performance, perhaps we would be able to accept lucrative projects such as those. 1. Lifestyle (such as nutrition, stress, exercise) and disease management options 2. Advantages and disadvantages of in-house versus outsourced wellness programs 3. Potential wellness program vendors L. Johnson 4. Communications and marketing for gaining employee buy-in 5. Incentives for maximizing employee participation Enc.: 5-Year Financial Impact Estimates of Wellness Program Evaluation Exercises 5.4 Evaluating Latisha's Proposal for an Implementation Plan of a Wellness Program (LO 5.2, LO 5.3, LO 5.4, LO 5.5) Based on the completed message from Latisha in Figure 5.7, answer the following questions: A. How effectively is this message framed? Would you suggest any changes? B. How effective is the business logic? Would you suggest any changes? C. How effective is the tone? Would you suggest any changes? 5.5 Evaluating a Business Message (LO 5.2, LO 5.3, LO 5.4. LO 5.5) Choose a business message to evaluate. You could find a recent letter you have received from a business, go to a website and Before sending important written messages, I... Make sure I gather all the facts. Think carefully about what the facts mean. 5.6 Self-Assessment of Approach to Writing (LO 5.2, LO 5.3, LO 5.4, LO 5.5) Evaluate yourself with regard to each of the practices listed in the table below. Circle the appropriate number for each. Take time to think about what my audience wants and needs. Spend time envisioning how my audience will respond. Think about how the gist of my message could be captured in one short statement. Map out the main supporting ideas for my primary message. CREATING EFFECTIVE BUSINESS MESSAGES CHAPTER FIVE 151 Check the message for logical consistency. Make certain the tone is positive (as appropriate). Ensure that the tone is other-oriented. Reread the message to make sure everything is correct. choose a message for customers or stockholders, or use a message specified by your instructor. Select a message that contains at least three or four paragraphs. Evaluate the message in the following ways: A. How effectively are facts and conclusions written? B. How effectively is the message targeted to its audience? Do you have any suggestions for how it could have been better adapted for the audience? C. Does it have any logical inconsistencies? Explain. D. Does the message portray a tone of positivity? Other-orientation? Describe your viewpoint with examples. 2 3 (Rarely/Never) (Sometimes) (Usually) 2 3 2 2 1 1 1 1 1 2 2 2 2 2 2 2 www 3 3 m m m 3 www 3 3 3 (Always) 4 ** 57 at st st 4 cistent however. Focus on prepar-