Employee Assistance Program Savings

Employee Assistance Programs

Employee Assistance Programs (EAP) are growing in popularity in the business world as a human resource tool to help employees in need. EAPs were created to provide confidential, easy-to-access programs to help maintain well-being, health and employee productivity.

This program covers a wide range of services which are tied to emotional, psychological, and financial factors. EAPs are offered to employees through their place of employment, and in some cases the government. The services are free for the benefactor. Most importantly, the information is kept confidential. Though employees attend these programs voluntarily, without the EAP programs many employees would not be able to continue on in their current circumstances.

Employee Assistance Program Savings

Using the Employee Assistance Program can help save your business money in the long run. According to the U.S. Department of Labor, for every dollar that is invested in an EAP, businesses see a return of anywhere from $5 to $16. When it comes to the bottom line, this can make a huge difference.

Employee Savings

Employee Assistance Program Savings go more in depth than just financial. In a report from The Substance Abuse & Mental Health Services Administration (SAMSHA), EAP's created:

• 75% reduction in inpatient alcohol and substance abuse treatment costs
• 33% decline in utilization of sickness benefits
• 65% decline in work-related accidents
• 30% decline in workman's compensation claims
• 66% reduction in absenteeism when alcohol abuse is identified and treated

Company’s who take advantage of these programs also see an increase in employee productivity, reduction in attrition, fewer grievances filed, and less disciplinary problems.

Real Examples of Savings

According to the website, EAP Preferred, there is a great cost benefit to using employee assistance programs. Numerous large corporations have reported tremendous savings using the Employee Benefits Program. Here is how a few businesses credited EAP’s savings in their bottom line:

Firestone Tire & Rubber

• Estimated a savings $1.7 million, or $2,350 per person involved

Scoville Manufacturing

• Annual cost savings of $186,550

McDonnell-Douglas

• 44% reduction in missed days
• 81% reduction in attrition rates
• 14% improvement in employee productivity
• $7,300 on average less in filed health care claims by those utilizing EAP services.

Oldsmobile

• Health care costs decreased overall by 29%
• Grievances by 78%
• Disciplinary problems by 63%
• Absenteeism due to inpatient treatment by 49%.

For more examples of how EAP’s saved business money, visit EAP Preferred.

Services Covered by an EAP

Employee Assistance Programs offer a wide range of services.

Psychological and Mental Health

Employee mental health can affect their job performance and ultimately your bottom line. EAP’s are used as an intervention procedure to help employees in times of:

• Depression
• Anxiety
• Stress
• Grief and bereavement
• Mental disorders

According to Avera Health Plans website:

• Nearly one in five workers who call in sick are suffering from stress rather than illness. (CCH, Inc. Unscheduled Absence Survey, 2002)
• Stress has increased 316% in 5 years as a reason for absenteeism.
• Personal (21%) and family issues (20%) show as leading causes respectively (CCH, Inc. 2002) and stress contributes to 85% of workplace accidents. (Employee Assistance Report, 2001)

Family and Marital Issues

Family and marital issues is another cause of stress and depression. Employee Assistance Programs intervene to help in these areas. Family issues can lead to depression and anxiety, so intervention early can help deviate potential bigger problems.

Financial Issues

An EAP can help employees with financial issues involving bad credit, debt, and bills. They can also provide resources to help with housing.

Substance Abuse

Substance Abuse is common among the work force, and it’s effects on productivity influence employees in numerous ways. Employees who abuse alcohol or drugs:

• Are late more often
• Request more time off
• Utilize more sick benefits
• Are involved in more accidents
• File more workman’s compensation claims than employees not on drugs or alcohol

Other Services

Employee Assistance Programs help in other areas as well including:

• Legal
• Child Care
• Elder Care
• Career Planning
• Retirement

This program provides a great savings opportunity for your company by helping your employees in non-work related areas of their life which affect their work pattern.