Employee benefits How to get the most out of an Employee Assistance Program (EAP) by Terri James, CFG Insurance Services M ost employers rely on their Employee Assistance Programs to defuse individuals and situations, yet few organizations do more than put an EAP in place and list it among the employee benefits. When you consider how expensive a benefit an EAP can be, it is surprising how little effort some employers make to ensure they are getting their money’s worth. In order to leverage your EAP to its potential, questions you should ask include: • How much is the plan being used? • Are supervisors using it? • Have counselors successfully handled stress and management issues well? Page 16 How does an EAP work? EAPs provide counseling that employees can either access on their own or be referred to. The counseling is designed to help the employee cope with a wide range of individual and family problems, including emotional illness and marital and parent-child difficulties. EAPs also offer other services such as legal consultations. Typically, employees will telephone the EAP on their own and may be offered a phone or even a face-to-face appointment. At that session, the problem may be resolved or the employee may be referred for more specialized help, such as to a mental health therapist or an attorney for example. Employees may also be given the names of resources they Update • July—August 2003 Employee benefits can contact on their own, such as home helpers for aging parents. The Medica Optum® program, for example, handles concerns ranging from personal and work issues to financial difficulties, family problems, and legal questions. Members can reach Medica counselors by calling toll-free at any time, without needing to make an appointment or leave home or work. Specifically, the Medica Optum plan will help employees with: • Marriage or relationship problems. • Emotional distress. • Parenting challenges. • Stress management. • Grief and loss. • Conflict resolution. • Financial worries. • Personal legal issues. With an EAP, you can also furnish ancillary services. Among them might be on-site visits, supervisory training, “wellness” programs for employees, and crisis intervention to deal with the aftershocks of traumatic incidents. Encouraging employees to participate One way to combat low-use rates is to offer on-site counselors. Although not many organizations offer such services, those that do see a much higher EAP participation rate. Studies show that utilization goes up by about 60 percent when the EAP counselors are located on company premises. It may seem counter-intuitive that people would go for counseling at their workplace, but accessibility and visibility get people in the door. The EAP should be presented as more than counseling for the depressed and those with substance-abuse problems. This can be done by adding a phrase such as “to include other services” to your EAP contract and encouraging employees to use the EAP for interpersonal and stress-related issues, including work-related problems. You can also set up a database to track (anonymously) the types of problems encountered by EAP counselors. If there is an inordinate amount of problems coming from a specific department or job site, then the organization should investigate further to see if there is an underlying problem. A full 91 percent of companies with more than 5,000 employees utilize EAPs, according to a survey in a recent study by the Society for Human Resource Management. Even organizations with fewer than 100 employees were just as likely to contract for an EAP, the survey reported. The payoff for the employer If your employees’ personal problems are left unresolved, they translate into poor work performance. The quality and quantity of their work deteriorates, while absenteeism and tardiness increase. The number of workers’ compensation claims, disability claims, medical insurance claims, and Update • July—August 2003 An EAP: Just what the doctor ordered Protect your most valuable resource—employees. Each of the following conditions could reduce your organization’s competitiveness. It’s in the best interest of employers and employees to identify and reduce job stress. An EAP could be just the thing. Causes of job stress • Employees working longer hours and taking fewer vacations. • A downsizing, layoff, or reorganization that creates uncertainty and increased workloads. • Employees lacking control over work and career. • A corporate culture in which the required effort exceeds rewards employees can earn. • A poor social environment and lack of support from managers and coworkers, resulting in workplace isolation. • Conflicting or uncertain job expectations, or too many responsibilities. • Unpleasant or risky physical conditions. Signs of job stress • Headache • Sleep disturbances • Difficulty concentrating • Short temper • Upset stomach • Job dissatisfaction • Low morale grievances also increase. Hidden costs include morale problems within the work unit, damage to public image, costs related to poor judgment, and time taken when supervisors must shift from regular duties to handle problems. Implementation of an EAP can reduce the costs associated with a troubled employee and ideally reduces turnover. Studies show that savings range from $1.50 to $15 for every dollar invested in an EAP, with an average savings of $3 to $5 per EAP dollar. Studies also have found that an EAP can reduce sickness benefits by 33 percent, work-related accidents by 65 percent, and workers’ compensation claims by 30 percent. When asked, many owners and managers reply that people are their greatest asset. Investing in an EAP enables employees to seek confidential assistance for their personal issues before the workplace and the employer’s profits are affected. Workers are then healthier and better able to perform their jobs at the optimum level that is necessary in a competitive business environment. For more information about adding an EAP to your benefits package, contact CFG at 952-945-0200. Page 17