Employee Assistance Program or EAP is an employer sponsored service allowing staff to confidentially utilise counselling to resolve problems (whether personal or work). This approach is used by most large and many smaller businesses to maximise productivity, morale and staff loyalty.
The cornerstone of most EAPs is usually a confidential short-term counselling and referral service. This may be complemented by mediation services, referrals, education programs, and/or training courses.
The design of the service, cost-constraints and monitoring processes are contracted with individual employers to ensure the cost-efficiency and effectiveness of the service.
EAPs have been clearly demonstrated to provide significant savings in terms of:
• Absenteemism
• Dealing with substance abuse
• Staff retention/turnover
• Accident rates & claims costs
• Team orientation and organisational loyalty
LEAPING TO PRODUCTIVITY & PROFITS
If you could be confident of getting between $3 and $15 back for every $1 you out-laid, would you hesitate to invest?
There is convincing data from a large number of studies that employee mental health, physical state and the treatment options for these significantly impact on workplace safety and productivity.
Addressing these issues by implementing an Employee Assistance Program (EAP) is proving to be a very cost-effective solution.
Case 1:
At McDonnell Douglas, implementing an EAP cut lost work days, medical claims costs, absenteeism and turnover. The company reported a 4:1 return on its investment. (Stern (1990). Why EAPs are worth the investment. Business and Health, 14-19. Washington DC. Collins, K. r. (1998). Cost/Benefit analysis shows EAPs value to employer. EAPA Exchange, 28 (6), 16-20.)
Case 2:
In one study where an EAP was implemented, work loss was avoided in 60% of cases with an average savings of 17 hours per case. 72% of these cases showed improved work productivity with an average gain of 43%.
(Attridge, M. (2001, August). Personal and Work Outcomes of Employee Assistance Services. Presented at the American Psychological Association Annual Meeting. San Francisco, CA.)
Case 3:
A study of Chevron’s EAP in 1992 found that there were 37%-46% fewer terminations, with savings of $50,000 per case for avoided turnovers.
(Stern (1990). Why EAPs are worth the investment. Business and Health, 14-19. Washington DC.; International Foundation of Employee Benefit Plans – Survey Results May 2002)
Case 4:
Another study found an average of a $3.00 return for every $1.00 invested in the EAP; when employees were recommended to the EAP by their supervisor due to poor job performance, returns significantly increased to $13.00 on every $1.00 invested.
(As reported by Masi Research Consultatants, Inc. based on their study with the federal government, Merrill Lynch & Co and the National Fire Protection Association.)
Case 5:
The establishment of an EAP with an emphasis on safety awareness saved one small company (70 employees) $75,000 by reducing its workers’ compensation and vehicular accident costs
(Substance Abuse Prevention: It’s Your Business. Center for Substance Abuse Prevention. U.S. Department of Health and Human Services – 1992.)
