Benefits of an Employee Assistance Program

What is an employee assistance program?

An EAP, as defined by the Society for Human Resource Management, is “a work-based intervention designed to help employees resolve personal problems that may affect their job performance.” Notably, the programs are often open not just to employees, but also to other members of their households.

These are some of the common areas for which an EAP can support employees and their families:

• Stress management: Work and finances are some of the top causes of employee stress. Stress-management counseling can provide your team members with resources and techniques to cope with stress and minimize its consequences. [Find out how stress affects productivity.]
• Domestic violence: Domestic violence resources can include counseling, legal advice and intervention.
• Grief: Grief can be devastating to anyone. Having to work in the midst of it is often difficult. Grief counseling is one of the most reliable ways to help people through a hard time.
• Alcoholism: Alcoholism has to be treated carefully and effectively, and EAPs are often better suited to guiding people to proper help than rendering it directly.
• Crisis management: Crises happen, often out of the blue. Examples of crises include the loss of a house in a natural disaster, a devastating health diagnosis and other unexpected problems. Crisis management helps employees focus on what they can control and keeps them organized as they deal with the issue. Crisis-management resources can help your team members get back on their feet more quickly and effectively.
• Psychological (mental health) disorders: There are many health disorders that are not disabling. Although they introduce challenges to a person’s life, many can be managed. An EAP can typically identify problems and refer workers to the right experts to get the specialized help they need.
• Substance abuse: Substance abuse issues are managed much like alcoholism. When a problem is identified, EAP resources can help get the affected staffer to a qualified professional or into a program that has a good chance of providing long-term help.
• Health and caregiving: Health and caregiving experts provide advice for employees who are in a situation that requires them to provide immediate care to another. The training can prepare the person to care for an elderly family member or someone with disabilities.
• Family services: Family services center around child care and family planning. EAPs can offer advice for organizing resources, time and ideas to foster a better home situation. The services may include assistance in finding and financing expert child care, planning family or medical leave, and budgeting for a growing family.
• Counseling needs: EAPs are limited programs. Ultimately, they’re best for directing employees toward long-term solutions. For many issues under the purview of an EAP, counseling referrals are the long-term solution with the best prospect for providing meaningful aid.

Michael Roche, owner of Web Design Saigon, said an EAP can provide a range of assistance to your employees — but it’s important to make sure it’s relevant to their actual needs. “It is advisable to identify what is actually important to your employees rather than just guessing,” Roche said. “You will find a lot more uptake in the benefit, which should result in improved productivity or morale within the business — the main goals of an EAP.”

What are the benefits of an EAP?

One reason EAPs are popular is because they benefit both employees and employers. Healthy and happy employees are more productive and engaged in both their company and individual jobs, which is great for a business’s bottom line.

“EAP is one of the best benefits you can offer your team,” said Brittany Truszkowski, chief operating officer of Grand Canyon Law Group. “An EAP is a lifeline for professionals who are trying to navigate personal challenges while maintaining demanding careers. In our industry, where perfectionism and high standards are the norm, having confidential support systems is essential, not optional.”

Here are some of the top ways an EAP can benefit your organization:

• It increases business productivity. It’s in employers’ best interests to have employees who are mentally and physically healthy. When employees are healthy, they have more opportunities to engage with their work, and engaged employees tend to have better work performance.

• It reduces employee absenteeism. Highly engaged business units that take advantage of EAPs tend to see a reduction in employee absenteeism. When employees are healthy and have easy access to resources that improve their well-being, they take fewer sick days. They also may be more likely to arrive at work on time, since they won’t be delayed by physical or mental blocks.
• It boosts employee retention. EAPs support your employees’ health and well-being so they can focus on work, which, in turn, can improve employee engagement and job satisfaction and thus boost your employee retention rates. Maintaining a high retention rate is crucial to your bottom line, since the cost of replacing an individual staff member can range from one-half to two times the employee’s annual salary.

• It improves employee safety. According to the U.S. Bureau of Labor Statistics, private industry employers reported 2.6 million nonfatal workplace injuries and illnesses in 2023, down 8.4 percent from 2022. There were also 0.9 nonfatal cases per 100 full-time workers on days away from work — down from 1.2 in 2022. Injuries result from a variety of factors, such as repetitive stress and accidents. You can’t prevent every ailment or incident, but an EAP can help ensure your employees are taking care of their physical and mental health, putting them in the best position to be safe and careful at work.
• It saves you time and money. When employee safety goes up, the number of workplace injuries and illnesses goes down. EAPs can help reduce the number of disability claims, labor disputes, health insurance claims and workers’ compensation claims your business faces. That can save you a lot of time and money that you would otherwise spend on those issues.
• It aids employees personally and professionally. Even if a problem isn’t directly related to an employee’s job, they and their family members can still receive valuable support from an EAP. EAPs give employees convenient access to a 24/7 hotline and direct access to experts who can provide help for domestic and financial matters. With support for personal issues, employees who have EAPs in their benefits packages are likely to trust that their employers care about them and their well-being both inside and outside the workplace, which can engender loyalty.

How does an EAP work and what does it offer?

An EAP is set up by the employer, or an external vendor if the program is outsourced (see below). It’s free for employees to use. Although they can take advantage of the benefit if they like, participation in an EAP can’t be mandated by employers; it’s entirely voluntary. Employers do, however, pay for the programs, and staff usage is highly encouraged. The business cost of an EAP varies, but it typically ranges from $10 to $100 per employee per year.

“EAPs are generally affordable for employers, especially when considering it can lead to cost savings by reducing absenteeism, improving productivity, lowering health-care expenses and decreasing employee turnover,” said Stephanie Reitz, director of client services at myHR Partner. “Employees who have access to mental health and wellness support are less likely to experience burnout, stress-related illnesses or workplace conflicts, all of which can be costly for a business.”

When an employee or their family needs to use the EAP’s services, they simply contact their company’s in-house EAP team or the external provider via the information provided by their organization’s HR team. An EAP specialist will assess their needs and then direct them to the best resource. Employees should rest assured that the information they share will remain confidential. Employers are not privy to data on which employees use the program or how often they do so. They can receive reports showing that the program is being used, but they won’t know who is doing so. [Learn about HR reporting.]

How to offer and implement an EAP

Implementing an EAP effectively ensures that employees can access the support they need. Below we’ll explore the different ways to offer an EAP and outline key steps for successful implementation.

How to offer employees an EAP

There are three main ways to offer an EAP: in-house, outsourced or blended. Outsourcing is recommended for smaller companies that don’t have the resources to host an EAP in-house.

• In-house EAP: Like its name suggests, an in-house EAP means qualified employees at your company manage the program and offer its services on-site. It’s the job of an in-house EAP professional to provide employees with direct services or referral resources. An in-house program can feel intimidating to employees who may be embarrassed to ask for help, worry that their information will not be kept confidential and feel uncomfortable seeing these co-workers around the office. As a result, in-house services often don’t get as much use as external programs do.
• Outsourced EAP: Employees can access an external EAP by calling a toll-free phone number connected to your chosen EAP vendor. An EAP specialist answers calls and asks employees a few questions to verify their employer and location, and then finds out what the employee needs support for so the specialist can recommend the best resources.
• Blended EAP: Through a blended program, employees have the option to seek assistance in-house or via the third-party provider. A blended program is not recommended for small businesses with limited resources.

Reitz advised that businesses assess their EAP regularly. “Employers should continuously evaluate the EAP by reviewing usage trends (without compromising privacy) and gathering feedback to make improvements,” she said. “By taking these steps, companies create a workplace where employees feel supported, leading to improved well-being, higher morale and greater productivity.”

How to implement an EAP

According to Roche, these are the main steps for implementing an EAP:

1. Determine your budget. Identify and confirm the budget for the new program. Figure that out by calculating and totaling the per-employee fee to better understand how much you may need to spend versus what you are prepared to spend.
2. Identify your needs. Figure out which services your employees would benefit from.
3. Choose a provider. Choose an EAP provider if you’re outsourcing. As you consider vendors, make sure to check their service-level agreements, since they vary considerably. Also ask fellow business owners and HR professionals who use EAPs which providers have been good for them. Alternatively, hire a specialist to run your EAP in-house.
4. Promote it. Use the time between choosing your EAP provider and launching the program to announce and promote the new benefit to employees.
5. Train staff. Ensure that key HR personnel, company managers and department heads have been trained on how the program works so it runs smoothly when unveiled.
6. Launch it. Consider launching the new benefit at a special event, such as a company gala, team retreat or end-of-year party.
7. Maintain it. Periodically review your EAP and how employees are using it. Solicit feedback from team members.

“You could use the fact-finding part of what your employees want from such a service as the start of the promotion of the new employee benefit [that] is soon to become available,” Roche said. “Think of it like the release of a new mobile phone when they tease features before a launch.”

Amanda Hoffman and Marissa Sanfilippo contributed to the reporting and writing in this article. Some source interviews were conducted for a previous version of this article.