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EAP: Organizational ROI

Cost-effective, value-based employee retention

Keeping an employee healthy and working productively costs far less than replacing that employee. The Mercyhealth EAP helps keep employees on the job, and more importantly, sends a message that employees are considered assets worthy of commitment and support.

Companies often experience difficulties in dealing with employees troubled by personal problems, such as emotional distress, substance abuse or marital difficulties. Sometimes the problems preoccupy employees to the extent that, in either their own or their supervisor’s judgment, their work is disrupted. If the situation is not addressed, the employee could lose their position.

However, staff turnover usually involves costs to the company such as:

  • Hiring costs, involving time and facilities for recruitment, interviewing, and examining a replacement.
  • Training costs, involving the time of the supervisor, human resources department, and trainee.
  • The pay of a learner, which is often in excess of what is produced.
  • Loss of production and the necessity to cover the interval between separation of the old employee and replacement by the new.
  • Loss of general employee morale in the company and possible diminished reputation in the community.

Healthier, happier, more productive employees

EAP can intervene in employees’ problems before they interfere with work, and you can address the needs of your employees on a professional and compassionate level while saving your company money.

Why does an EAP work so well? The reason is simple; most troubled employees would rather get help than lose their jobs. And when employees reach out for help through an EAP, the ripple effect spreads throughout the organization:

  • Healthier employees are more energetic, call in sick less often, and have fewer chronic diseases. Several studies report that mental health treatment reduces the cost for treating physical illnesses by as much as 70 percent.
  • Healthier employees have fewer industrial accidents.
  • The performance ability of healthier employees improves, and that reduces your absenteeism and turnover rate.
  • The overall moral of the organization is improved.
  • Your company’s image is enhanced, which in turn has a positive influence on clients, customers, suppliers, and the general public.
  • For every $1 an employer invests in an EAP, recovery from loss is estimated at $3 to $5.

You experience reduced costs in:

  • Worker’s compensation
  • Health care costs
  • Life insurance premiums

A typical success story

One female employee referred herself and her husband for an initial assessment, complaining of feeling depressed, unable to get to work on time and being unable to concentrate. She felt her productivity slipping, and knew her supervisors were concerned. During the assessment, her major worry became known: her husband drank quite heavily. The employee had to care for her family, do her job, and worry about whether or not her husband was going to come home and what would happen once he did. Both she and her husband were motivated to make improvements.

Her EAP referred her husband for alcohol treatment and both for ongoing marital therapy, covered by the employer’s health plan. The employee’s depression and worry have considerably lessened, as her husband found the help he needed. Due to the intervention of her EAP, this employee has the motivation and energy to come to work on time, her concentration has improved and her productivity has increased.

The contracted company has not lost a valuable employee to personal problems affecting job performance.