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
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.
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.)
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.)
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)
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.)
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.)