• A majority of businesses with over 500 employees currently have an Employee Assistance Program (EAP). Over 70% of companies with 100-499 employees also have EAP’s and the numbers are steadily growing. An EAP is the most direct and cost-effective way to tell employees that they really are your most important resource.

• The EAP will service 6 to 16% of your company's employees during year one in addition to one third of their family members. Given the average cost of termination, temporary replacements, recruitment selection, and training, if the EAP saves just one job per year it will pay for itself. Productivity is also greatly enhanced as it often takes several months for a new employee to achieve the productivity of his/her predecessor. In addition, if an employee has a problem, which impacts work performance, often other members in the department are affected as well.

• The EAP can manage utilization of mental health insurance benefits, keeping your company's premiums low and assuring that your employee's get appropriate care quickly and cost effectively. Afflictions such as depression, stress and substance abuse comprise more than 25% of employer health costs. Fifty percent of EAP users will have their needs met through the EAP, eliminating the need to utilize their health care benefits for additional counseling. In addition, employees who are referred to mental health providers will have their treatment monitored for effectiveness. This will reduce the likelihood of employees receiving unnecessary or ineffective treatment.

• A small company (70 employees) reduced its workers' compensation and vehicular accident cost by $75,000 by establishing an EAP with an emphasis on safety awareness.

• Studies done at Crestar Bank showed that average psychiatric costs were 58 percent less for EAP participants compared with those who did not use the EAP. EAP participants had an average of 8.8 sessions compared to 13.1 sessions for the non-EAP group. The average cost of $45 per session resulted in savings of $193 per outpatient case.

• The landmark 1988 McDonnell Douglas research study supports the premise that providing EAP services significantly reduces mental health costs. The study suggests that EAP’s average a 3-to-1 return on the dollar overall, but can pay off as much as 13-1 when the employees involved have been recommended to an EAP by their supervisors as a result of poor job performance. Employees using EAP’s have fewer absences, generate fewer medical claims, and remain with their companies longer.

• Managers are given the means to address performance issues quickly and appropriately while avoiding the tendency to become over involved with personal counseling.

• EAP also can provide other training. Topics such as Addressing Workplace Violence and Preventing Sexual Harassment can be offered yearly. Yearly savings for these additional training’s can be substantial.

• Many companies initially hire an EAP to help them comply with the Drug-Free Workplace Act. This act requires all businesses with federal contracts of $25,000 or more to maintain a drug-free workplace. An EAP can facilitate all of the legislation's requirements for a company to establish drug policies and to provide the training and clinical services needed to stay drug-free.

• In addition to cost-savings and compliance, EAP’s enhance employees' morale and loyalty.
  
  

For more information contact Employee Business Solutions, Inc. at: info@ebs-eap.com