There’s No Such Thing As a Free Lunch or EAP

I have always wished that, when I go to a party and someone asks me what I do for a living, I could just give a simple answer.  Unfortunately there isn’t one that won’t leave people scratching their heads.  As an attorney, it would be easy.  I could say I practiced law and specialized in contracts, family law, anti-trust or something else that is very clear.  But defining what an Employee Assistance Professional is is a bit more complicated.  You see, we EAP professionals help corporations maximize their greatest asset, their human capital.  WOW!!! Sounds pretty sexy, right?  But what the heck does it mean?  And even more importantly, what is its value?

The latter question is also not so easy to answer.  Because in the world of employee benefits, there is much discussion about EAPs as a commodity.  And it is hard to argue this point since insurance companies include EAPs at no additional cost (that’s right, FREE) in order to get you to purchase health, disability or life insurance.  And there are hospitals who include it as a way of filling their beds or outpatient clinics.  But these are not the kinds of programs that really benefit organizations.  Lots of people still think of EAP as an old school tool for alcoholics or substance abusers only.  But that is a very limited way to look at this very valuable program. EAPs are now a total resource that offer many different points of access including on line, telephone and in-person visits.  They also include management consultations and training to help managers identify and coach employees through hard times.

So, with this said, and I must admit that I am biased, an EAP that is for free is not really an EAP nor is it really going to be FREE.  After all, what value can you get for FREE or little cost?  And now more than ever we need a program that truly balances the needs of the employees with the needs of the employer as we face this terrible period of economic uncertainty.  In a recent study of our own EAP customers, Perspectives looked at utilization data from the twelve months since March, 2008 and compared the data from September, 2008 when the economic crisis really took hold.  We found:

• a 7% increase in overall calls to the EAP
• a 6% increase in calls related to financial or legal issues with a steady trend upwards each quarter since September 1, 2008
• a 14% increase in concerns related to work stress
• an 8% increase in psychological concerns

And I see no reason why these trends will not continue in the foreseeable future.  With all of this data however, U. S. employers still take a very short term view toward business and their employees.  Instead of investing in their people, especially those who remain after any reductions in force (RIFs), they still go for the FREEBIES.  And these free EAPs are very passive and usually quite invisible so as not to encourage use because of the costs associated with delivering service.  The remarkable thing about this is that the cost for a complete EAP with Work Life components including a Child and Eldercare resource and referral service, a prepaid legal service and a financial counseling & education program is between $1.80 and $3.00 per employee per month.  Further, family members even if they are not covered by the company health insurance plan also have access to these services.  Compare that to the total premium cost for health insurance of between $800 and $1500 per employee per month.

Now more than ever, employers need to invest in their employees.  For those who are still employed, the primary focus of business should be on having an engaged workforce dedicated to weathering this economic storm and growing the business.  And for those who have been “let go”, this type of program lessens the likelihood of bad feelings and potential risk through litigation, workplace violence or spreading negativity about the employer.  I keep saying this and I do believe it; this economy will turn around and once again we will have demand shifting in favor of employees.  When that happens, employers who have invested in their human capital will have the upper hand in the hiring wars and therefore will have more profitable and sustainable businesses.

So, the next time you are at a party and you run into someone who provides EAPs, walk right up to them and say,

“I know what you do.  You keep my employees productive and engaged by giving them and my managers resources and support.  It is always nice to be able to turn to you folks when I have someone in trouble or when my managers need consultation or training on how to be the best employees they can in the best company there is.”

Or just enjoy the party knowing that your managers and employees are in good hands.

Tags: EAP, Employee Assistance Program, Financial, Free EAP, Legal, Stress, Work Life