EAPs: Great Benefits at Low Cost

02/27/07

You have a problem in the workplace that probably costs you a lot more than you think it does. What is it? The harm done to your operations when employees bring their personal troubles into work.

Depressed employees, for instance, cost U.S. businesses $23 billion in lost work days, reduced productivity, and injuries per year. Workers who abuse drugs, alcohol, and tobacco cost as much as $100 billion a year. And people experiencing a hodgepodge of other problems—grief, relationship concerns, trouble managing anger, financial pressures, domestic violence, and that workplace favorite, stress—add billions more to the total.

And don’t underrate the extent of such problems. One study shows that 20 percent of your workforce is, at any one time, grappling with a personal problem that reduces productivity by 25 percent. Another says that 68 percent of us experience problems, at some point, that keep us from handling day-to-day duties.

EAPs to the Rescue
There’s a simple, extremely cost-effective way to deal with personal problems that affect on-the-job performance: Sign up with an Employee Assistance Program, or EAP. According to the U.S. Department of Labor, each dollar you invest in an EAP will save you anywhere from $5 to $16.

Among many other success stories, a University of Michigan study estimated that 122 staff members enrolled in an EAP saved the school $65,341 over five years.

How EAPs Work Magic
At the core of most EAPs are counseling and referral services for just about any personal problem that impedes success on the job or off. EAP counselors assess problems, provide short-term counseling, make referrals in serious cases, and follow up. They also offer training to prevent problems, as well as workshops that help supervisors spot problems that hamper productivity.

The mission of Vermont’s INVEST EAP sums up the purpose of an EAP well. It sees its job as working “with employers to provide a cost-effective prevention/ intervention program to employees and their families to address personal issues that may impact their work life.”

The “personal issues” handled by invest EAP counselors most often concern family and relationships problems, stress, substance abuse, and adverse financial and legal situations.

The Cost Is Minimal
Good EAPs, says INVEST EAP specialist Wendelin Patterson, “offer comprehensive services for a wide range of personal issues and problems. They maintain their own staff, don’t rely solely on affiliates, and maintain a strong worksite presence.”

That presence comes in the form of orientation sessions for employees, wellness workshops, and frequent meetings with employees in need.

Such services must run well into the hundreds or thousands of dollars for each employee, right? Wrong. Most EAPs cost in the neighborhood of $6 to $40 per employee per year. They can keep the cost low because utilization rates the extent to which people use EAPs—are fairly low, only 5 to 6 percent of the workforce per year.

Also, in many cases, health insurance kicks in. Says Patterson, “Most EAPs do initial assessment and short-term problem resolution. Employees with problems requiring either the attention of a specialist or longer-term care are referred to an appropriate outside service provider. Medical referrals, and mental health and substance-abuse counseling, are typically the responsibility of employees and their health insurance.

Yet despite the minimal cost, only 21 percent of firms with 50–99 employees nationwide have EAPs, while 76 percent of the firms with more than 1,000 employees have them.

Get the Most Out of Your EAP
Many studies suggest that adding an EAP to your benefits package can result in large decreases in absenteeism, much less conflict at work, a decline in the number of sick days used, and a significant decrease in injuries. Without a doubt, an EAP is thus an extraordinarily cost-effective way to increase productivity and improve retention.

But you don’t get benefits like these without a little effort on your part. Best practice: Appoint a person to work closely with the EAP, especially to examine utilization figures and trends like increases in sick days used or the number of people seeking anger-management counseling. “When you identify trends,” says Patterson, “you and the EAP can come up with an appropriate intervention, like a wellness workshop or organizational development consultation.”

It is also critically important that any employee’s contact with an EAP remain completely confidential. Your organization’s relationship with an EAP can succeed only when employees are sure their problems won’t become public.

In House or Out
Some companies set up their own in-house EAP. That’s usually more expensive than contracting with an out-of-house service, and it’s harder to maintain confidentiality.

“The beauty of using an outside EAP,” says Patterson, “is the confidential nature of the service, the breadth of expertise, and the ease of access. All it takes is a phone call. For people reluctant to seek help, the fewer the steps the better.”

Some companies do have successful in-house EAPs. If you go that route, Patterson offers this advice: “Make sure the EAP staff is truly separate and distinct from other employees. Usually, a separate physical location is important. Staff should always have the option of seeing an outside provider to prevent potential conflicts, embarrassments, and compromises in confidentiality.”

EAPs Don’t Replace Insurance
Whichever way you go, remember that EAPs don’t replace health insurance policies. “People sometimes think EAPs replace mental health crisis centers,” says Patterson. It surprises some, she adds, that counselors often have to refer people to outside specialists, who will need to be paid separately.

She also notes that some people expect the impossible out of EAP counselors, like resolving mental health problems swiftly.

Educate Workers
If people aren’t reminded constantly that the EAP exists to help them resolve problems great and small, they won’t use the service. Publicize your EAP extensively through brochures, workshops, and worksite posters. Send information home, too, so spouse and family become aware of what’s available.

Ongoing education serves as a good reminder that help is only a phone call away. Have an EAP representative come in to explain the benefits of the program, or to present brownbag seminars on a regular basis. Topics can include managing common mental health problems, dealing with substance abuse, reducing exposure to financial or legal problems, or gaining the benefits of daily exercise.

It’s also important to train supervisors to refer their people to the EAP. If they learn to see warning signs, for instance, they can gently push the employee toward the EAP. Their incentive: Healthy, happy employees make them look good.