Employee Assistance Programme (EAP) – A Cost or A Benefit? ��Presented by � Ainsley Deer (Dr)��Training Dynamics & Consultants Ltd. (TD&C)�

Definition:

• An EAP is a service sponsored by the employer and designed to Provide assistance to employees, who are experiencing personal problems that may be negatively affecting their job performance.

Personal Concerns include

• Health Family Drugs
• Marital Financial Legal
• Work Alcohol Stress
• Child/family problems
• Compulsive gambling
• Violence
• Abuse
• Psychological trauma
• Critical incidents
• Bereavement counselling
• Suicide intervention

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Common types of problems that affect Personal Productivity

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Employee Assistance Programme

Not to be reproduced

Network Services Centre, Inc.

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Prevention �& �Early Intervention

The Toll of Behavioural Disorders

Mental disorders collectively account for more than 15% of the overall burden of disease from all causes

(major depression, alcohol abuse, manic

depression, schitzophrenia, obsessive- compulsive disorder)

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Murphy & Lopez, 1969.

Role of the Supervisor

Critical to the level of productivity and motivation of the employee

EAP

can be the bridge between the

‘distressed’

or

‘troubled’

employee and professional help

The Benefits� of � EAP

SYMPTOMS

• Feel physically drained
• Out of emotional control – feel good one minute; in the pits the next
• Can’t eat – food makes you sick. People tend to loose up to 40 pounds while grieving
• Susceptible to illness
• “Zombie Effect”. Feelings shut down due to your body’s natural coping mechanism

SYMPTOMS Contd.

• Brain is scrambled; can’t think clearly or remember things
• Cry continuously
• Can’t cry – bottle it up (it will come out years later)
• Stay extremely busy so as not to have time to think
• Drink too much
• Take too many drugs
• Can’t sleep at night
• Take naps frequently and are constantly tired
• Sigh a lot
• Talk about it over and over and dwell on it every moment

SYMPTOMS Contd.

• Lose interest in work; house; physical appearance
• Neglect personal hygiene (don’t brush teeth, take regular baths, or wash hair very often)
• Fantasize about the past
• Suffer from loneliness
• Have lots of guilt about things you did or didn’t do
• Lack of interest in sex
• Engage in self-criticism
• Have a huge hole in your heart and soul
• Think you will never recover from your loss
• Suffer from severe depression
• See no reason to exist

Reduction in Measurable � Losses

• Health Insurance claims
• Sick Leave
• Accidents & Injuries
• Absenteeism
• Turnover

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Reduction in Hidden Losses

• Poor Decision-making
• Public Image
• Staff working relationships
• Grievances �

How Do Employers Benefit �from the EAP?

• Given a chance to rebuild their lives

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• Assisted with utilizing coping mechanisms to manage their personal and work worlds

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• Given a chance to improve their lives and that of their dependents

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• Enabled to make a positive contribution

to the participating company’s bottom line

How the EAP Works

Key Points

• EAP Referral is
• Non-disciplinary
• Not a substitute or extension of disciplinary action.
• Voluntary
• No penalty for not going.
• No cost to client
• Employer pays.
• Confidential
• Governed by EAP ethics and company policy

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Employee Assistance Programme

Not to be reproduced

Network Services Centre, Inc.

​

What the EAP Services Offers

1. Crisis Intervention
2. Assessment, Counselling, Referral & Follow-up
3. Supervisory Training
4. EAP Orientation
5. Educational Seminars / Workshops
6. Management Reports

Does the Programme �Affect the Employee’s �Job Security?

Do Unions Support �the EAP?

Who Do We Serve?

Cost Benefit of EAPs

Substance abuse and mental illness cost

U.S. companies over $110 billion per year,

i.e. $3000 per employee

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(Employee Assistance Report 2001)

For every $1 spent, employers save �$5 to $16 per employee���(US Department of Labour)

Examples of Cost Benefits

1. Philadelphia Police Department reduced their sick days by an average of 38% and their injured days by 62 percent.

Examples of Cost Benefits cont’d.

b) Oldsmobile’s Lansing, Michigan Plant saw the following results in the year after its alcoholic employees underwent treatment

- Lost man-hours decline by 49 percent

- Health care benefits by 29 percent

- Leaves by 56 percent

- Grievances by 78 percent

- Disciplinary problems by 63 percent

- Accidents by 82 percent

Examples of Cost Benefits�cont’d.

3. United Airlines

estimates that it has a $16.95 return for every dollar invested in EAP

Absenteeism �(EAPA Facts) �

• 30% in lost time

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• 60% in accident and sick pay

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• 50% in grievances filed

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• 70% in accidents

Healthcare Savings �(EAPA)

Savings of $116.00 per employee

Productivity

Canadian Mental

Health Association

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• 10-15% of employees have severe personal problems

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• Work performance 35% below normal

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• Reduced productivity cost 3.5%-5% of payroll

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�Turnover�

• Inability to perform accounts for

15% of terminations

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• Personal/Interpersonal factors account for 65-80% of all

terminations �

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(Employee Assistance Report 2001)

Other Benefits �According to the Substance Abuse and Mental Health Services Administration (SAMHSA) EAPs created �

• 75% reduction in inpatient alcohol and substance abuse treatment costs
• 33% decline in utilization of sickness benefits
• 65% decline in work-related accidents
• 30% decline in workman’s compensation claims
• 66% reduction in absenteeism when alcohol abuse is identified and treated

Real Examples of Savings

• Firestones, Tire & Rubber

Estimated a savings of $1.7million or $2,350 per person involved

• Scoville Manufacturing

Annual cost savings of $186,550

• McDonnell-Douglas

44% reduction in missed days

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81% reduction in attrition rates

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14% improvement in employee productivity

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$7,300 on average less in filed health care claims by those utilizing EAP services

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Real Examples of Savings contd.

• Oldsmobile

Health care costs decreased overall by 29%

Grievances by 78%

Disciplinary problems by 63%

absenteeism due to inpatient treatment by 49%

• Chevron Corp.

realized savings of $14 for every $1 spent on EAP

• The City of Los Angeles Department of Water & Power

Alcohol-abusing employees referred to their EAP demonstrated a 33% decrease in sickness absenteeism with savings estimated at $349,763 over a three-year period (Yandrick,1992)

• Virginia Power

Realized a 23% drop in medical claims over a four-year period for individuals who accessed the EAP compared with those who accessed behavioural health benefits of their own (SAMHSA),1995)

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Services Covered by an EAP

Other Services

Retirement

Some Key Points

What Makes An EAP Successful?

Summary

• Handles variety of problems
• Provides high quality counseling
• Is available to the employee and his/her dependents 24 hours per day
• Has several ways of referring
• Is easy to access
• Is completely confidential
• Helps to maintain job security
• Has the support of the unions
• Bolsters a take-charge attitude and rebuilds confidence
• Is voluntary

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