What Is an Employee Assistance Program (EAP)? Your In-depth 2024 Guide

Employee stress has been rising for more than a decade, which is not good news for business. Worldwide, according to Gallup’s 2022 Workplace report 44% of employees said they had experienced a lot of stress the previous day, making it the second year in a row worker stress reached record levels.

In a poll by ComPsych, 50% of employers say mental health support for their employees is the area of greatest concern and need today. When asked themselves, nearly 100% of employees polled said mental health support is a top concern. These figures have significant implications when it comes to productivity, absenteeism, work quality, wasted and workplace safety. They also highlight the need for more employee support.

An employee assistance program (EAP) is a workplace benefit program designed to provide confidential and professional assistance to employees who are dealing with personal or work-related problems that could affect their well-being and job performance. EAPs are offered by employers to support their employees’ mental health, emotional well-being, and overall productivity. Let’s dive into the essential aspects of EAPs, their benefits, potential downsides, formats, and, most importantly, how to implement one in your organization effectively.

Contents
What is an employee assistance program?
Example of employee assistance program (EAP) services
5 Benefits of employee assistance programs (EAPs)
Types of employee assistance programs 
Cost of employee assistance programs
Employee assistance program (EAP) jobs 
American Express Case Study: An EAP example
Implementing an employee assistance (EAP) program 
Employee assistance program (EAP) maturity model

What is an employee assistance program?

When an employee is dealing with mental health and stress-related concerns, it can have a significant impact on their job performance. Investing in an EAP is an investment in strong business outcomes.

EAPs contribute to derisking a company by promoting early intervention, improving employee mental health, mitigating conflicts, reducing staff turnover, and ensuring compliance with legal and ethical standards. By investing in the well-being of employees, your company can create a healthier, more productive, and safer work environment, minimizing potential risks and liabilities.

An EAP provides a timely intervention and support for a wide range of issues that employees face, such as stress, anxiety, depression, substance abuse, family problems, financial concerns, relationship issues, and more. EAPs generally include assessment, short-term counseling, referrals, and follow-up services.

Having an EAP is not just about addressing the individual troubles that your employees face; it’s also about building and cultivating a culture that prioritizes their overall well-being.

5 Benefits of employee assistance programs (EAPs)

By investing in the wellbeing of their employees, businesses can create a healthier and more productive work environment. Implementing an EAP benefits your organization in five valuable ways:

• Increased employee productivity: By providing employees with access to counseling services and support for personal and work-related challenges, EAPs help employees address and manage mental health issues, stress, and other concerns. This, in turn, improves employee well-being and increases productivity. When employees receive the necessary support to navigate challenges, they can focus better on their work and perform more efficiently.
• Reduced absenteeism: EAPs help reduce absenteeism by addressing underlying mental health concerns and providing strategies for managing work-related stress. By offering confidential support, EAPs can help employees to resolve personal issues that would otherwise lead to increased absenteeism. Additionally, EAPs can help address presenteeism, where employees come to work but are not fully productive due to physical or mental health issues, by improving employee engagement. 
• Enhanced employee retention: Employee turnover is expensive for employers. Recruitment, onboarding, and training new employees all come at a cost. EAPs contribute to higher employee retention rates by providing valuable support and resources. When employees feel supported and valued by your organization, they are more likely to stay and contribute to its long-term success. 
• Improved workplace morale and culture: Implementing an EAP demonstrates a commitment to employee wellbeing and creates a positive workplace culture. EAPs contribute to reducing the stigma around mental health and create an environment where employees feel comfortable seeking help when needed. This creates a culture of empathy, support, and understanding, leading to improved workplace morale, stronger team dynamics, and a more positive overall work environment. 
• Cost savings: By providing early intervention and support for mental health concerns, EAPs can help prevent issues from escalating, potentially reducing healthcare costs associated with more severe conditions. By decreasing absenteeism and improving productivity, EAPs can lead to financial savings for your business. What’s more, by promoting employee retention, you can save on recruitment and training expenses associated with high turnover rates.

Types of employee assistance programs 

Cost of employee assistance programs

The average annual cost of an EAP ranges from $12 to $40 per employee per month, less than one third of 1% of the typical employers’ annual per-employee spending on health insurance. The EAP is usually offered in conjunction with, or as an added benefit to, an employee health care package. Many health insurance company plans offer an EAP benefit with a co-pay.

Here are five top-rated EAP providers that can be contacted, should you wish to find out more about their offering and costs:

1. Cadence Insurance
2. ComPsych Corporation
3. Ulliance, Inc.
4. ESI Employee Assistance Group EAP
5. G&A Partners

Employee assistance program (EAP) jobs 

American Express Case Study: An EAP example

American Express was recognized for its comprehensive approach to employee well-being after implementing a hybrid employee assistance program (EAP) to support its employees’ physical and mental health. By expanding its EAP and adding on-site professionals for face-to-face counseling sessions, utilization rates more than doubled.

Healthy minds

The company has focused on destigmatizing mental health conditions through enhanced communication, education, and behavior change programs under the umbrella of “Healthy Minds,” a component of its broader “Healthy Living” program. Its HR team launched various communication campaigns, such as “One in Four” and “I Will Listen,” featuring actress Glenn Close and leaders pledging support for mental health in the workplace. They also initiated the “Time to Talk” campaign, encouraging conversations about mental health among employees.

Evidence-based practices

The company integrated evidence-based practices and cultural considerations into its behavior change programs and resources. These include online applications teaching cognitive behavior therapy skills, webinars available in multiple time zones, and a meditation program accessible by telephone.

American Express also promotes collaboration between departments to incorporate mental health into their activities. For example, a nurse in occupational health created a sleep enhancement program that included mindfulness meditation, and wellness coaches added mental-health-related activities to their campaigns.

Linking health to performance measures

Leadership support has been instrumental in American Express’s initiatives. The medical director has consistently linked health to performance measures and has broadened the business case for workplace health and productivity. The company’s commitment to employee well-being is evident through frequent blogs available to managers, regular participation in leadership meetings, and the visible involvement of leaders in wellness efforts.

American Express was recognized for its efforts in promoting employee wellbeing and organizational performance, receiving the American Psychological Association’s Organizational Excellence Award. The organization has a strong commitment to providing resources and integrated health services for employees and their families, and strives to build a culture of health in the workplace.

Key learnings from American Express 

1. Holistic approach: American Express integrates healthcare, mental well-being, and financial wellness initiatives into a comprehensive benefits program, taking a holistic approach to employee well-being.
2. Hybrid EAP model: The company adopts a hybrid EAP model, combining in-house services and external resources to provide a wide range of support options for employees.
3. Destigmatizing mental health: American Express focuses on destigmatizing mental health conditions through enhanced communication, education, and behavior change programs, promoting open discussions and awareness under the “Healthy Minds” component.
4. Leadership support: Visible support from senior leaders and line managers is crucial in promoting employee well-being, and American Express leaders actively participate in wellness efforts and openly discuss mental health.
5. Collaboration and innovation: The company encourages collaboration between departments, seeking innovative ways to address employee well-being, incorporate mental health into various activities and initiatives, and continuously improve their programs based on evidence-based practices and data-driven insights.

Implementing an employee assistance (EAP) program 

When implementing an EAP, consider several factors to ensure its effectiveness and successful integration into the workplace.

1. Needs assessment and budget: Conduct a thorough needs assessment to identify the specific challenges and needs of employees related to mental health, work-life balance, stress, and overall well-being. This will help tailor the EAP to address the most pressing issues within the organization. Consider the size of your organization, the number of employees, and the desired level of services when determining the budget.
2. Scope and services: Determine the scope and services offered by the EAP based on the identified needs. Consider including services such as confidential counseling, crisis management, legal and financial consultation, wellness programs, and educational resources.
3. Accessibility and confidentiality: Ensure that the EAP is easily accessible to all employees, including remote workers or those in different locations. Maintain strict confidentiality and privacy protocols to encourage employees to seek help without fear of repercussions.
4. Vendor selection: Choose a reputable EAP provider that aligns with your organization’s values and has a track record of delivering quality services. Consider factors such as experience, expertise, responsiveness, cultural sensitivity, and the availability of diverse resources.
5. Communication and awareness: Develop a comprehensive communication strategy to inform employees about the EAP, its benefits, and how to access services. Promote awareness through multiple channels such as intranet, email, posters, and informational sessions.
6. Manager training: Provide training for managers and supervisors to help them understand the EAP and its benefits, recognize signs of distress in employees, and effectively refer employees to the program when needed. Managers play a crucial role in creating a supportive and inclusive environment.
7. Integration with other programs: Integrate the EAP with other employee wellness programs, benefits, and initiatives within your organization to create a cohesive approach to well-being and maximize the impact of the EAP.

Employee assistance program (EAP) maturity model

To sum up

EAPs can bring significant benefits to companies. An EAP can help your organization address and mitigate workplace issues early on, preventing them from escalating into larger problems. Through counseling services, conflict resolution support, and critical incident response, an EAP provides a proactive approach to managing workplace challenges.

By addressing tensions, stressors, and mental health concerns in a timely manner, companies can reduce the negative impact on performance, team dynamics, and organizational culture. An EAP also demonstrates a commitment to employee well-being and creates a supportive work environment, which can enhance the employer brand, attract top talent, and improve employee retention.

An EAP not only benefits individual employees, but also has a positive impact on overall business performance. By prioritizing employee well-being, your organization can promote a healthy and productive workforce, leading to improved business outcomes, reduced costs, and a competitive edge in the marketplace.

Monique Verduyn

Monique Verduyn has been a writer for more than 20 years, covering general business topics as well as the IT, financial services, entrepreneurship, advertising, pharmaceuticals, and entertainment sectors. She has interviewed prominent corporate leaders and thinkers for many top business publications. She has a keen interest in communication strategy development and implementation, and has worked with several global organisations to improve collaboration, productivity and performance in a world where employees are more influential than ever before.

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