What is an Employee Assistance Program and Does Your Company Need One?


An Employee Assistance Program (EAP) refers to a scheme designed to give employees ways to deal with personal issues that may have a negative affect on their job performance, such as stress, anxiety and depression.

EAPs can be an effective way to help staff reach out for help, manage stress and maintain high levels of productivity and performance. However, some businesses benefit more from having an Employee Assistance Program in place than others. If you are deliberating whether to introduce an EAP at your company, the following guide may help you determine whether you need one.

How an EAP Works

Through an EAP, your employees have access to trained and licensed counselors, should they need to talk to them. By making a phone call to a trained EAP counselor, your employees can get immediate assistance, typically for topics issues like:

  • Drug addiction
  • Workplace conflicts
  • Marital/relationship issues
  • Mental health issues, such as depression, anger management, anxiety,
  • Legal and family advice
  • Grief counseling
  • Financial counseling
  • Caregiving issues

The Benefits of an Employee Assistance Program

Any sessions carried out with counsellors are done so in complete confidentiality, giving your employees peace of mind that you will not be notified if they use this service.

In an emergency, staff have access to an EAP crisis counselor 24 hours a day via a Crisis Telephone Line for immediate assistance to tackle personal problems and mental health issues.

If left untreated, personal problems can escalate leaving your employees under performing at work, potentially having an attitude in the workplace, which can translate into poor customer services or relationships with other team members. Such personal issues can also run the risk of leading to injuries occurring in the workplace, which could end up costing your business dearly in workers compensation.

By talking with a trained, qualified counselor, an employee suffering with stress, anxiety, depression, substance abuse, or any personal problem, will have an outlet to open up about such issues and learn coping strategies and mechanisms, so their personal issues are less likely to impact their job performance.

From your perspective as the employer, having an EAP set up to help your members of staff overcome issues that may be negatively affecting how they perform at work, can have a positive impact on your business.

By having a resource to discuss their problems and finding coping strategies in a completely confidential way, EAPs can help create a more satisfied, happy, loyal and productive working environment. Consequently, an EAP can help reduce absenteeism rates in your company and the negative implications to productivity and profits absenteeism creates.

Benefits of Employee Assistance Programs (EAPs) Insights
Confidential Counseling – EAP sessions are completely confidential, providing employees with reassurance that their privacy is protected.
Emergency Access – EAPs offer access to crisis counselors 24/7 via a Crisis Telephone Line, ensuring immediate assistance for personal and mental health crises.
Performance Improvement – Untreated personal problems can lead to reduced job performance, negative workplace attitudes, and potential impacts on customer service and team relationships.
Injury Prevention – Unresolved personal issues can increase the risk of workplace injuries, potentially resulting in workers’ compensation costs for the business.
Coping Strategies – EAPs allow employees to discuss issues with trained counselors and acquire coping strategies, reducing the likelihood of personal problems affecting job performance.
Positive Business Impact – Implementing an EAP can positively influence the workplace environment, fostering employee satisfaction, happiness, loyalty, and productivity.
Reduced Absenteeism – EAPs can help reduce absenteeism rates in the company, mitigating the negative consequences on productivity and profits associated with employee absenteeism.
Cost Savings – Addressing mental health and personal issues through EAPs can lead to cost savings, particularly in health insurance expenses, by reducing doctor visits and insurance claims.

How EAPs Can Reduce the Cost of Your Health Insurance

EAPs can also help reduce the number of grievances arising at your company, as well as terminations. By using the program to help combat mental health issues and stress-related illnesses, Employee Assistance Programs can also help reduce the cost of your business’s health insurance, because employees are making less visits to the doctors.

How EAPs Help Create a ‘Culture of Health’

EAPs help businesses achieve and sustain a desirable ‘culture of health’, which looks after the whole of an employee’s health. By looking after the physical, mental and social wellbeing of your employees, EAPs, by creating a culture of health, means your employees are not just more productive with less absenteeism, but they can be more loyal to your business and less likely to go elsewhere for work because they feel like they are being looked after.

With a more loyal set of workers, your business can benefit from higher staff retention rates and won’t be plagued by the task of having to recruit and train new members of staff through high employee turnover rates.

How Much Does an EAP Cost?

Having an EAP set up at your company costs around $35 per employee per year, though this can vary depending on your location and whether you choose to pay the fixed rate per employee scheme or the pay-per-use program, so an EAP can cost anything from $10 – $100 per employee per year.

Naturally, the size of your budget to pump into programs like this will significantly determine whether having an EAP in your business is feasible. However, if your budget can stretch, the productivity, turnover and potential money saved through looking after the health and welfare of your employees, your number one asset, could be a sensible business move.

Considering an Employee Assistance Program (EAP): Is It Right for Your Business?

If you’re contemplating the implementation of an Employee Assistance Program (EAP) at your company, it’s essential to evaluate whether it aligns with your business needs and goals. Here are some key factors to consider:

How an EAP Works

An EAP provides employees with access to trained and licensed counselors for confidential assistance with various personal issues. These issues may include:

  • Drug addiction
  • Workplace conflicts
  • Marital/relationship issues
  • Mental health concerns (e.g., depression, anxiety, anger management)
  • Legal and family advice
  • Grief counseling
  • Financial counseling
  • Caregiving challenges

The Benefits of an Employee Assistance Program

EAPs offer numerous advantages for both employees and employers, such as:

Confidentiality: Counseling sessions are entirely confidential, reassuring employees that their use of the service will not be disclosed to the employer.

Emergency Support: EAPs often provide access to crisis counselors 24/7 through a Crisis Telephone Line, offering immediate assistance for personal and mental health crises.

Improved Employee Performance: Addressing personal problems through counseling can prevent them from negatively impacting job performance, reducing absenteeism, and potential injuries in the workplace.

Enhanced Workplace Environment: EAPs contribute to a more satisfied, happy, loyal, and productive work environment, fostering better employee relations and customer service.

Cost Savings: EAPs can reduce health insurance costs by addressing mental health and stress-related issues, leading to fewer doctor visits and health insurance claims.

Cultivating a ‘Culture of Health’: EAPs promote a holistic approach to employee well-being, encompassing physical, mental, and social health. This can improve employee loyalty and reduce turnover rates.

Benefits of Employee Assistance Programs (EAPs) Insights
Confidentiality – EAP counseling sessions are kept entirely confidential, ensuring employees’ privacy and trust in the service.
Emergency Support – Access to crisis counselors 24/7 through EAPs’ Crisis Telephone Line provides immediate assistance during personal and mental health emergencies.
Improved Performance – Addressing personal issues via EAP counseling helps maintain employee job performance, reducing absenteeism and workplace injuries.
Enhanced Workplace Environment – EAPs contribute to a positive workplace culture characterized by employee satisfaction, loyalty, productivity, and improved customer service.
Cost-Efficiency – EAPs can lead to cost savings in health insurance expenses by tackling mental health and stress-related issues, resulting in fewer doctor visits and insurance claims.
Fostering a ‘Culture of Health’ – EAPs promote a comprehensive approach to employee well-being, encompassing physical, mental, and social health, enhancing loyalty and reducing turnover.

Cost Considerations

EAP costs vary but typically range from $10 to $100 per employee per year, depending on factors like location and chosen program type (fixed rate or pay-per-use). Consider your budget and potential long-term savings when evaluating the feasibility of implementing an EAP.

Frequently Asked Questions (FAQs)  

What is an Employee Assistance Program (EAP)?

An Employee Assistance Program (EAP) is a scheme designed to provide employees with resources and support to address personal issues that could adversely affect their job performance. These issues may include stress, anxiety, depression, addiction, financial troubles, and more.

How does an EAP work?

EAPs offer employees access to trained and licensed counselors who can assist with various personal challenges. Employees can reach out to these counselors through a dedicated phone line. Common topics addressed by EAP counselors include drug addiction, workplace conflicts, mental health concerns, family and marital issues, legal advice, and more.

What are the benefits of having an EAP in my company?

Implementing an EAP can bring numerous benefits to both employees and employers:

  • Confidentiality: EAP counseling sessions are entirely confidential, ensuring that employees can seek help without fear of their employer being notified.
  • Emergency Support: EAPs often provide access to crisis counselors 24/7 via a Crisis Telephone Line, offering immediate assistance for personal and mental health emergencies.
  • Improved Employee Performance: Addressing personal issues through EAP counseling can prevent these issues from negatively impacting job performance, reducing absenteeism, and the risk of workplace injuries.
  • Enhanced Workplace Environment: EAPs contribute to a more satisfied, loyal, and productive work environment, leading to better employee relations and customer service.
  • Cost Savings: EAPs can lead to cost savings in health insurance expenses by addressing mental health and stress-related issues, resulting in fewer doctor visits and insurance claims.
  • Cultivating a ‘Culture of Health’: EAPs promote a holistic approach to employee well-being, covering physical, mental, and social health. This approach can improve employee loyalty and reduce turnover rates.

How can an EAP reduce the cost of my company’s health insurance?

EAPs can help reduce health insurance costs by addressing mental health issues and stress-related illnesses among employees. When employees have access to counseling and support through the EAP, they may require fewer doctor visits and make fewer health insurance claims, resulting in potential cost savings for the employer.

How does an EAP contribute to creating a ‘Culture of Health’ in my company?

EAPs promote a ‘Culture of Health’ by focusing on the overall well-being of employees, encompassing physical, mental, and social health. By providing support for various personal challenges, EAPs help employees feel cared for and supported by their employer. This can lead to increased employee loyalty and a reduced likelihood of seeking employment elsewhere, ultimately benefiting the company.

What is the typical cost of implementing an EAP in my company?

The cost of implementing an EAP can vary based on factors such as location and the chosen program type. Generally, EAP costs range from approximately $10 to $100 per employee per year. Employers should consider their budget and potential long-term savings when evaluating the feasibility of implementing an EAP.

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