Return on Investment and Benefits of EAP

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PsychWorks, Inc. ^™
Behavioral Healthcare For The 21st Century©

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. For more proof click here 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%

Success Proven

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PsychWorks, Inc,
10191 W. Sample Road, Suite 207
Coral Springs, Florida 33065 USA

visit our subsidiary company:

A place of information for those in business, benefits brokers, and other corporate representatives who are interested in behavioral risk management and cost containment. Featuring a members only secure site for all our EAP employee members. On the web at: employee-assistance-programs. net		Advanced Workplace Solutions a division of PsychWorks, Inc.

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