In March, I wrote a blog titled “There’s No Such Thing as a Free Lunch or EAP.” Well, this is my follow up. And why do I feel the need for a follow up? It’s simple. Because there are so many indirect costs associated with “free” employee assistance programs (EAPs) – and they can be staggering.
Now, I know that I’m biased because Perspectives is one of a handful of EAP vendors who still believes in providing added value EAPs v. “freebies” for companies that just want to say they have one. But here’s the newsflash: to do this right, there has to be a cost. Otherwise, you get what you pay for.
What is truly amazing, however, is that the cost of a high-touch EAP is minimal in comparison to other costs to employers, such as health insurance premiums. It’s literally ½ of 1% of those costs.
So what are the real costs of a “free” or “embedded” EAP? Here are just a few of them:
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Missed cases of domestic violence. According to the American Institute on Domestic Violence, the health related costs of domestic violence-related activities is $5.8 billion per year. Corporate losses in the form of productivity and earnings are $1.8 billion and intimate partner violence results in a loss of 8 million days of paid work.
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Lost days at work and productivity with undiagnosed substance abuse. Alcoholism alone causes 500 million lost work days per year (U. S. Department of Labor). Health care costs for employees with alcohol problems are twice those of other employees (Schneider Institute for Health Policy, Brandeis University, Substance Abuse, The Nation’s Number One Health Problem, Princeton, NJ: Robert Wood Johnson Foundation, February 2001: 70).
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Incidents of workplace violence and bullying cost $121 billion a year in nonfatal workplace assaults, resulting in 876,000 lost workdays and $16 million in lost wages, according to the National Institute for Occupational Safety and Health (NIOSH). In fact, NIOSH suggests having Worker Assistance Programs (or EAPs) for “improving screening and recognition of (WPV) workplace violence issues and being involved in response to WPV incidents to serve victim, witness, and co-worker needs”.
All of the above are quite costly; far more costly than an EAP.
A lack of early intervention vehicles, normally provided by a true EAP, is the modus operandi of “free/embedded” EAPs. If people don’t know about resources that can help them get assistance, the problems can rise to a crisis stage. And this is even more of a problem today with the economy faltering, people having less resources and being more distressed.
Just think how beneficial it would be if an employer who is struggling to keep his business profitable spent a few dollars to provide his employees resources that they need to get through this crisis. It would create a true culture of engagement and productivity where employees feel that they are being supported and treated with care and respect. It wouldn’t be free, but it would be worth it.
P.S. Stay tuned for future updates. As I mentioned, these are only a few of the costs that stem from free EAPs…
Tags: absenteesim, domestic violence, EAP, embedded eap, Free EAP, presenteesim, productivity, substance abuse, workplace bullies, workplace violence
June 18th, 2009 at 3:27 pm
I have worked in the Employee Assistance profession for the past 25+ years and Bernie’s observations about “free” EAPs in this blog and in his previous April blog on the same topic are absolutely right on. What really happens with a “free” EAP is that the program is very rarely if ever adequately marketed to employees and their family members – especially their family members who often never even know a company based EAP exists.
What makes EAP unique is that we have numerous customers that we serve. Of course there is the employee/family member who is in need of service, but there is also the company that is providing the EAP service who depends on the EAP for consultation around behavioral health related issues. A good EAP program will not only be available for this higher level of consultation but will also have a relationship with the company. The EAP program will understand company policies, manufacturing or service needs and HR and legal policies that may be unique to one’s particular industry.
I can just about guarantee that a “free” EAP will not have the wherewithal, infrastructure or inclination to develop that level of consultation service.
Let the buyer beware. You get what you pay for.
June 20th, 2009 at 4:27 pm
Thanks Scott. You are right on target and it is nice to hear it from someone who has been an active Employee Assistance Professional for so many years. There is no doubt that things need to change to meet the many changing needs of our clients and customers but in so doing we can’t lose sight of the main reason for EAPs; to help employees live more productive lives and therefore contribute to their companies. That connection between employee and employer is what leads to business success. To do that, “free” just doesn’t cut it.
September 3rd, 2009 at 11:51 am
I absolutely agree. I also work in the industry and have the pleasure of representing another EAP provider who believes in a high touch approach. Human lives are not cheap or free and should not be entrusted to a program that is thrown in as an afterthought.
November 14th, 2009 at 5:36 pm
The tide seems to be turning on the free EAP issue. We are finding that companies are getting wise to this and and slowly moving back toward real service. I am more disturbed these days with the bundled programs that companies are purchasing from large health insurance companies. These programs have very little to do with EAP work.
Last week, an employee reported to us that she called her new (bundled) EAP and they wanted a name, insurance number, and social security number before they would talk to her. We were surprised so we called the number and found out it was true. In addition to the red tape, these programs have no worksite presence. The EAP simply consists of a few sessions with a network therapist before psychotherapy is approved.
In addition to the comments above, a real EAP helps with wellness integration, works toward getting employees back to work, helps with preventive care, and reaches out to employees in a proactive way. An EAP provides a safety net for employees by being visible all the time, not just in a crisis.