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The
EAP will service 6-10% of your employees during the first year including up to
one third of their family members. Given the average cost of termination,
temporary replacements, recruitment and training, IF THE EAP SAVES JUST ONE JOB
PER YEAR, IT WILL PAY FOR ITSELF. Productivity is greatly enhanced as it often
takes several months for a new employee to achieve the productivity of his/her
predecessor. Additionally, if one employee has a problem at work it often
affects other employees within the same department. The
EAP can manage utilization of Mental Health/Substance Abuse benefits.
Employees can receive adequate care quickly and cost efficiently.
Depression, stress and substance abuse comprise more than 25% of employer health
costs. Managers
and supervisors are trained on how to identify problem employees and address
performance issues appropriately while avoiding the tendency to become too
involved with employee problems. Training
includes how to identify and refer a troubled employee to the EAP. In
addition to cost-savings and compliance, EAP’s enhance employee morale and
loyalty. 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
have fewer absences, generate fewer medical claims, and remain with their
companies longer. A
compilation of 11 studies from Hazelden Foundation Research (Bureau of National
Affairs, 1987) conducted between 1976 and 1981 concluded: employees who used the
EAP...
Another
review of 8 studies by Kurtz et al. (1984) found...
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