EAP and ROI

Do Employment Assistance Programs (EAP) create a return on investment (ROI)? EAP and ROI has been a controversial issue in the business world for a long time. Studies have shown that EAP creates a ROI, but a lot depends on the EAP program and the company’s commitment to support EAP. Also, some EAP programs are more effective than others.

If a company signs a contract with an EAP company yet doesn’t train supervisors and employees on what EAP is and how it should be used, then it won’t likely be effective. Yet, if company leadership buys into EAP and assures employees and supervisors that the program has backing from the CEO down, then EAP can help the company deal with costs related to behavioral/mental health. Billions of dollars are wasted among companies yearly due to absenteeism, accidents, low productivity, and other costs that arise when employees are negatively affected at work from marital problems, substance abuse, stress/burn out, financial problems, retirement concerns, depression, etc. For a company to simply ignore these problems is asking for trouble.

It’s common sense that if employees can access help through an EAP, they can improve their work performance and lower costs to the company. Several Large companies, like Dupont, GM and Ford, did follow up studies in the 80s and 90s covering over a decade of EAP and they found that for every dollar spent on EAP there was a 2 to 3 dollar return on investment. EAP has been around in some or another since the 1940s, although in the beginning it was mainly a program helping companies with their alcohol problem — they were called Occupational Alcoholism Programs (OAP).

EAP really took off in the 70s when they expanded the area of concern to all types of personal difficulties that employees experience, such as a anxiety over company downsize or merger. EAP can help with financial planning, elder care, and other such concerns, although the EAP professional might not handle these problems alone — EAP professionals usually see an employee, assess the problem, deal with the problem if it’s easily resolved in a few sessions, but refer the problem to the appropriate resource if outside the EAP professional’s ability to address. EAP maintains a database of local resources for referral so that an employee can find the needed help if the problem is more complicated and needs long term, specialized care.

A good EAP that’s supported by upper management creates trust between employees and the company, thus the company avoids excessive turn-over and increases productivity through a more healthy and happy workforce. The troubled employees have an opportunity to improve their mental/emotional health, avoid job problems, thus enhance their chances for advancement and long term job security. EAP and ROI makes for a win-win situation.