Why Your Company Needs An EAP
An employees performance and productivity on the job is dependent on his/her sense of well-being. Anything that negatively affects that sense will have a direct Impact on work performance. Factors which can affect well-being:
- Physical Fitness
- Nutrition
- Medical Conditions
- Use/Misuse of Alcohol, Drugs or other Addictive Behaviors
- Personality, Temperament, Attitude
- Social Support from Friends & Family
- Access to Health Care and Health Education
- Career or Occupational Satisfaction
- Financial Stability
- Relationships
- Repertoire of Effective Coping Strategies When Adversity Strikes
- Relaxation, Stress Management, and Recreation
Return on Investment
Did you know that by investing in one of our workplace programs, may it be a traditional EAP, work-life services or a substance abuse specific program, you will earn a significant return on your investment?
Absenteeism & Productivity Savings:
- In one study, 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%.
- Another study looked at legal/financial work life-services, finding that work loss was avoided in 39% of the cases and that work productivity was improved in 36% of the cases.
- A McDonnell-Douglas study compared EAP cases with a control group of employees who accessed their helath services directly without first contacting the EAP. It was found that employee absenteeism was lower for the EAP users that the NON-EAP user group. In fact, for those who presented with alcohol, tobacco and/or drug problems, the absenteeism raters were 44% lower; for those presenting psychiatric conditions, the rates were 34% lower.
Retention & Reduced Turnover:
- A study of Chevron's EAP in 1992 found that there were 37%-46% fewer terminations, wiht savings of $50,000 per case for avoided turnovers.
- The McDonnell-Douglas study mentioned above also found that over 4 years, employee turnover was 7.5% for EAP users, while it was 40%for non-EAP users who accessed their health services directly for alcohol related problems and 60% for non-EAP users who accessed their health services
Health Claims Savings
- The International Foundation of Employee Benefit Plans surveyed 185 benefit plan administrators about substance abuse services for multiemployer fund participants and reported:
- The EAP resulted in reducted health plan costs for 66% of respondents;
- 49% of those surveyed reported reduced disability costs thanks to EAP;
- The EAP reulted in reduced workers compensation costs for 41% of respondents.
- An abbott Labs Study reported a 6:1 return on investment due to lower overall net inpatient and outpatient medical costs for EAP cases.
Cost Effectiveness
In 1995 Blum and Morgan conducted a review of the coat-effectiveness of EAPs. The U.S. Department of Health and Human Services and The Substance Abuse and Mental Health Services Administration commissioned this review. Blum and Morgan found:
All of the published studies indicate that EAPs are cost-effective. There Is no published evidence that EAPs are harmful to corporate economies or to individual employees. Blum and Morgan to conclude: In this report we have considered what the appropriate role of the EAPs might be, with attention to their contributions to the prevention of mental health problems, especially alcoholism and other drug dependence. We examined numerous studies that consistently demonstrate the cost-effectiveness of EAPs.
In Canada, the annual cost of lost productivity from health and emotional problems is estimated to be as high as 14 billion dollars. Research shows that 90% of employees benefit from using EAP services. Investment benefit analysis proves that employers save $4 to $17 dollars per dollar investment Almost all large and most mid-size organizations offer some form of EAP to their employees. Employees in any occupational sector can benefit from an EAP.
-- quoted from The Hurst Place
Proven Return on Investment
More than 70% of all Fortune 500 companies have implemented Employee Assistance Programs.
United Airlines reported a return of $16.35 for every dollar invested in EAP costs
Scoville Manufacturing estimates an annual cost savings of $186,550 credited to their EAP.
General Motors estimates cost decreases in:
- 40% decrease in Lost Time
- 60% decrease in sickness and accident benefit
- 50% decrease in griveances
- 50% decrease in on the job accidents