Why Offer Employee Assistance Program?
Today’s small investment improves your bottom line due to:
- Lower medical claims.
- Reduced absenteeism, tardiness and sick leave.
- Decreased utilization of insurance plans.
- Reduced turnover.
- Increased employee productivity.
- Reduced risk of litigation.
- Increased supervisor effectiveness.
- Decreased workplace violence.
- Improved employee morale.
- High quality services at low cost.
Return on investment – A study of McDonnell Douglas Corporation noted a 4:1 return on investment.
Lower medical claims – A study of McDonnell Douglas Corporation revealed that employee medical claims per case averaged $715 less for EAP clients than for non-clients.
Decreased use of mental health insurance – A Campbell Soup study identified mental health costs as a percentage of total medical costs and revealed a reduction from 11.5% to 6.7%.
Reduced turnover – A study by the National Institutes of Mental Health reports that 66% of all terminations are personal-problem related rather than job related. Furthermore, a good employee may choose to leave a job to deal with overwhelming personal issues.
Improved employee morale – Employees appreciate easy access to this free, confidential service, and they value the commitment their employer makes to their personal well-being.
High quality services at a low cost – All of these EAP benefits are available to your organization at a fraction of the cost of most medical insurance benefits.
Decreased workplace violence – Workplace murders claim the lives of 1,000 people each year. Another 2 million people per year are victims of a violent event or threat in the workplace. EAP has three tools to reduce the risk of workplace violence: confidential and accessible consultation for employees who feel stressed, anger management training, and assistance for supervisors who are addressing potentially violent situations.
Reduced absenteeism, tardiness and sick leave – The 2002 CCH Unscheduled Absence Survey identified the average per-employee absenteeism cost as $789 per year. Absenteeism costs hit an all-time high in 2002, despite a slight decline in the absenteeism rate. Two-thirds of absenteeism incidents were due to reasons other than illness. Employers pay a high price, adding lost productivity costs to wage dollars. Early intervention through an EAP promotes quick resolution of personal problems, allowing employees to focus on work rather than family problems and mental health issues.
Increase employee productivity – A Chevron study reported a 50% improvement in employee performance after supervisors referred them to an EAP.
Reduce risk of litigation – Each year, approximately 80,000 civil cases are filed with the Equal Employment Opportunity Commission. Excluding legal costs and punitive damages, award costs average $100,000 per case. Fortunately, early workplace intervention can prevent lawsuits.