What is something that organizations can do—today, at relatively low cost—to simultaneously enhance employee well-being and boost organizational productivity?
Simple: implement an Employee Assistance Program (EAP). This often overlooked and undervalued benefit offering can have a positive impact that’s disproportionate to the level of investment required or even to its level of employee utilization. In other words, you don’t need to spend a lot of money or have all employees use the EAP to start seeing both workforce and bottom-line benefits.
But what is an EAP, and why do they matter? For HR professionals and business leaders, understanding the role of these programs could be a game-changer in navigating the complexities of workplace wellness.
At its core, an Employee Assistance Program is a workplace benefit designed to provide confidential resources and support for employees dealing with personal or work-related challenges. Whether it’s stress, mental health issues, financial struggles, family conflicts, or substance abuse, EAPs offer a lifeline for employees by connecting them to counseling, legal assistance, or financial advisory or support services. These programs, often provided through external vendors, come at little or no cost to employees.
The concept of EAPs dates back several decades, originally focused on addressing alcohol and substance abuse. Over time, they’ve evolved to include a broader array of services aimed at promoting employee mental health benefits and overall well-being.
For smaller employers in particular, EAPs are not merely a tool for cultivating a healthier, more productive workforce. They're also a way to keep up with larger enterprises. In the U.S. the likelihood of offering an EAP depends on the size of the organization. Over 97% of employers with more than 5,000 employees provide EAPs, but only 32% of companies with fewer than 100 employees do. This puts smaller companies at a huge disadvantage in being able to recruit talent from the same marketplace as their larger competitors.
Some employers might argue EAPs aren’t that impactful, and it’s true that relatively few employees tend to take advantage of them. According to the Center for Workplace Mental Health, “only about 3-5% of employees use EAP services.” Another study from Amwell, a telemedicine firm, put the number higher but still a minority (15%).
But where EAPs are used, they make a big difference. “I think of an EAP like medical insurance: It just takes one incident to make it invaluable,” said business owner and HR director, Rachel Ego told the Society for Human Resource Management (SHRM). “EAPs cover mental health and other life things that medical insurance may not cover. It’s a very low-cost benefit that could have incredibly high value.”
Plus, underutilization is often due largely to employees not being aware the EAP even exists rather than disinterest in it. Effective communication and education about the program can significantly increase employee engagement and utilization rates.
Key benefits for employees include:
Improved Mental Health: Employee mental health benefits help individuals address issues like anxiety, depression, and grief, leading to better emotional resilience. “The EAP is often the only touchpoint for employees to access legitimate and qualified mental health services,” says Erin Terkoski Young, senior director for health, equity and well-being at WTW.
Reduced Stress: Access to resources for managing work-life balance, caregiving responsibilities, or legal matters alleviates stress. For example, someone facing financial hardship may benefit from financial coaching included in the EAP, enabling them to address their concerns without taking on additional stress.
Increased Satisfaction: Knowing their employer values their well-being fosters loyalty and engagement
For business leaders, offering employee assistance programs is not just about doing the right thing—it’s a strategic investment in the company’s success. According to studies, organizations with robust EAPs often experience reduced absenteeism, higher productivity, and lower turnover rates.
Consider this scenario: A mid-level manager, overwhelmed by caregiving responsibilities and mounting work deadlines, finds herself on the verge of burnout. Through her company’s EAP, she accesses free counseling and learns about time management strategies and caregiving resources. Over a few months, her stress decreases, and she’s able to regain balance, ultimately improving her performance and satisfaction at work.
In another instance, an organization struggling with high turnover implements an EAP and sees a noticeable decline in resignations. Employees report feeling more supported, and workplace culture shifts to one enhanced by greater employee morale and loyalty.
So, what is an EAP, why do they matter, and how can you implement them effectively? These programs are more than a safety net; they’re a cornerstone of strategic HR management, delivering tangible benefits for employees and employers alike.
If you’re intrigued by the potential of employee assistance programs but want to dive deeper into the details, CoAdvantage can help! We offer a wide range of employee benefits, including EAPs and more. Contact our team today to talk about how CoAdvantage can help you unlock the power of EAPs for your organization.