EAP Return on Investment
It pays to invest in employee health. Here's how MHN can save you about $5 or $6 for every dollar you spend on EAP.1
Lower the Cost of Stress
Job stress costs US industry up to $300 billion annually due to absenteeism, employee turnover, diminished productivity, workplace violence, and direct medical, legal and insurance fees.2 An EAP is one of the most effective ways to reduce these significant costs.
Recruiting, replacement and training costs vary, but may be between 50 and 150 percent of an employee's annual salary.3 An EAP can improve employee retention by helping supervisors address employee performance issues and by helping employees manage personal problems affecting their work.
Increase Productivity and Employee Satisfaction
Personal problems often negatively impact job performance. By assisting employees with financial and legal issues, childcare or eldercare, family issues and emotional problems, an EAP can help members and their families lead healthier lives at work and at home.
Decrease Absenteeism and Sick Leave
After implementing an EAP, organizations often report significant declines in absenteeism, sick leave and workers' compensation claims. This is because the EAP quickly gives employees the resources and support they need.
Increase Management Effectiveness
Many managers ignore obvious warning signs that an employee needs help - leaving employee problems improperly addressed. With an EAP, supervisors learn effective ways to address an employee's personal problems and performance issues. They also learn how and when to refer employees to the EAP.
Improve Organizational Efficiency
The Client Services that come with MHN's standard EAP solutions help companies improve performance and productivity while streamlining operations. Expert services to guide companies through organizational change are also available.
Reduce Risk of Litigation
An EAP can also reduce the risk of litigation. It helps employees respond effectively to workplace harassment or discrimination, and it helps supervisors know how best to intervene in difficult situations before employees seek legal action.
Decrease Risk of Violence in the Workplace
Nearly two million people a year are victims of violence or threats in the workplace.4 Workplace violence is often related to alcohol or drug abuse, job-related stress or domestic abuse. EAPs can play a key role in preventing workplace violence by promoting violence prevention resources and providing consultation for employees who are stressed or are involved in an abusive relationship.
1Hiatt, Deirdre et al. EAP Treatment Impact on Presenteeism and Absenteeism: Implications for Return on Investment. Journal of Workplace Behavioral Health (2008).
2Southern New Hampshire Medical Center (July 2002).
3Driving the bottom line: improving retention. Saratoga PricewaterhouseCoopers LLP (2006). Accessed 12/7/2009 at http://www.pwc.com/en_US/us/hr-saratoga/assets/saratoga-improving-retention.pdf.
4Workplace Violence, U.S. Department of Labor Occupational Safety and Health Administration (2002).