Why should your company have
an Employee Assistance Program?

    Professionals in Human Resources have known the benefits of Employee Assistance programs (EAP), however, they often encounter resistance to implementing an EAP from management. One of the best strategies for helping management understand the value of an EAP is through cost/benefit studies. Below we have reported some of the research outcomes regarding EAP programs.

    • On the average, an EAP program provides a $3.00 return for every dollar invested in an Employee Assistance Program, and can result in as great as a $13.00 return when employees are referred by their supervisor for poor job performance.

    • McDonnell Douglas studied their EAP program and reported in 1988 that the program resulted in a $3.8 million return on the company's investment. Their savings came from 44% fewer lost work delays, 81% reduction in termination rates, and noteworthy reductions in employee medical claims. What is not quantified in their study are the "soft" benefits which include increased employee morale, greater company loyalty, improved performance and production, not to mention the positive impact on employee relations.

    • Employees who utilize the EAP program for substance abuse or mental health problems have fewer absences, use less medical claims, and often remain with a company longer resulting in a further return on investment.

    • Real cost savings occur as a result of retaining a valuable employee and avoiding the cost of turnover, recruitment and replacement. The annual cost of an EAP program can easily be justified by saving just one valued employee. Productivity is also greater since it takes several months for a new employee to obtain the productivity of the terminated individual.

    • EAP's are not just for controlling health care costs, employers have learned that the services of an EAP program can assist as another line of defense against wrongful discharge suits.

    • For employers with federal contracts of $25,000 or more , the Drug-Free Workplace Act requires that these employers maintain a drug free workplace. To this end, an EAP program can manage the requirements imposed by this Act including establishment of a drug policy and providing the education, training and assessment services needed under these guidelines.

    • Employee Assistance Professionals Association (EAPA) sets the standards for the EAP field. According the EAPA, the definition of an EAP is:

      A work-based program designed to assist in the identification and resolution of productivity problems associated with employees impaired by personal concerns including, but not limited to: health, marital, family, financial, alcohol, drugs, legal, emotional, stress, or other concerns which may adversely affect the employee job performance.

      The specific core activities of EAPs include: 1) expert consultation and training to appropriate persons in the identification and resolution of job-performance issues related to the aforementioned employee personal concerns, 2) confidential, appropriate and timely problem-assessment services, 3) referrals for appropriate diagnosis, treatment, and assistance, 4) the formation of linages between workplace and community resources that provide such services, and 5) follow-up services for employees who use those services. (EAPA Standards, 1992)


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