What's an EAP: EAP Cost Effectiveness
Offering an EAP is not only ethical and compassionate; it is a smart business strategy.
EAPs help employees cope with critical issues in an increasingly complex and challenging world. An organization benefits as employees are better able to work to their full potential. Employees challenged by emotional, financial, and legal troubles are absent more often, utilize more healthcare benefits, file higher rates of disability claims and grievances, have more workplace accidents, create supervisory problems, disrupt their work group, spoil morale, and are more likely to abuse substances.
Information gathered from 53,224 Morneau Shepell EAP clients during 2010 found that intervention through EAPs translates into improved employee mental health and higher productivity, as well as a 25 per cent reduction in costs due to lost productivity. "Workers with depressive disorders, in particular, can have almost four times more health-related lost productive time than those who do not suffer from these problems. The toll on the bottom line is huge," states Karen Seward, Senior Vice-President, Morneau Shepell.
In a recent survey by Accountemps, a financial and accounting staffing firm, more than 1,000 managers said they spent, on average, 18 percent of their time handling staff conflicts. That's almost one day a week, and it accounts for a lot of lost productivity.
The bottom line: EAPs help employees, their families, managers, and an organization’s bottom-line.