PsychWorks, Inc. ™

Why does your company need an Employee Assistance Program?

Alcohol, drug abuse, stress, divorce, mental illness, bankruptcy, grief, suicide…these are familiar terms, but somehow, meaningless it happens to us or someone close to us. And, yet the chances that any individual can navigate life from birth to death without facing serious personal challenges are virtually zero. If it were possible for employees to separate their personal problems from their work life, or for employers to ensure that individual productivity was unaffected by personal situations, there would be no need for employee assistance programs. However, the simple fact is that problems affect people, and people affect productivity. As an example, this translates into: 70% of those who reported using drugs are employed; 10 million employed people are currently users of illicit drugs.

Despite ambiguity on what constitutes cost effectiveness, it is clear from various company results that employee assistance programs more than pay for themselves. Subjectively, there is no way to place a monetary value on a job saved, a family put back together, the gratitude of the employee helped, or avoiding the loss of a life. These are not part of any annual report, but these are a very real and satisfying return from loss to an organization. Managed properly, an EAP will prove to be a positive influence on labor-management relationships, employee turnover, productivity and the sense of identity between employee and employer.

NOTE: The above has been quoted from EAPA’s Theory and Operation pamphlet

Additional benefits to your organization of an Employee Assistance Program (EAP):

• Decrease in Workers Compensation Claims.
• Decrease in Health Insurance Exposure & Experience.
• Decrease in Absenteeism & Tardiness.
• Increase in Employee Productivity.
• Increase in Supervisory Effectiveness.
• Retention of Valued Employees.
• Cost Containment of Insurance Claims.
• Proven Return on Investment.

More than 70% of all Fortune 500 companies have implemented Employee Assistance Programs. Firestone Tire and Rubber estimated EAP savings of $1.7 million or $2,350 per person involved. United Airlines reported a return of $16.35 for every dollar invested in E.A.P. costs. Scoville Manufacturing estimates an annual cost savings of $186,550 credited to their E.A.P. McDonnell-Douglas credits their E.A.P. for 44% reduction in missed work days. 81% reduction in attrition rates. $7,300 less health care claims filed by those utilizing E.A.P.

General Motors estimates cost decreases in:

• Lost Time ……………………………………….. 40%
• Sickness & Accident benefit …………………. 60%
• Grievances ………………………………………. 50%
• On-the-job accidents ………………………….. 50%

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