Why do you need an Employee Assistance Program?

1.      For every dollar they invest in an EAP, employers generally save anywhere from $10 to $26. The average annual cost for an EAP ranges from $18 to $40 per employee. Source: U.S. Department of Labor

2.      General Motors Corporation's EAP saves the company $37 million per year-$3,700 for each of the 10,000 employees enrolled in the program. Source: Substance Abuse: A Guide to Workplace Issues. ASIS O.P. Norton Information Resources Center (1990)

3.      United Airlines estimated that it gets a $16.95 return for every dollar invested in employee assistance. Source: Substance Abuse: A Guide to Workplace Issues. ASIS O.P. Norton Information Resources Center (1990)

4.      The City of Los Angeles Department of Water and Power reported a savings of $350,000 over a five-year period in reduced sickness absenteeism for employees with alcohol problems. Source: "Taking Inventory," published in the EAPA Exchange, (July 1992), EAP Association

5.      A small company (70 employees) reduced its workers' compensation and vehicular accident cost by $75,000 by establishing an EAP with an emphasis on safety awareness. Source: Substance Abuse Prevention: It's Your Business. Center for Substance Abuse Prevention, U.S. Department of Health and Human Services (1992)

6.      Studies done at Crestar Bank showed that average psychiatric costs were 58 percent less for EAP participants compared with those who did not use the EAP. EAP participants had an average of 8.8 sessions compared to 13.1 sessions for the non-EAP group. The average cost of $45 per session resulted in a savings of $193 per outpatient case. Source: Presentation at Georgia Tech by S. Davis. (1993) Personal Performance Consultants (Atlanta)

7.      Marsh and McLennan Companies reported evidence of savings believed to have been achieved by businesses through drug-free workplace programs that included EAPS. Evidence included the following: a reduction of on-the-job accidents and lost time as a result of such accidents at Tropicana; an estimated $1,750 savings per employee at Warner Corporation because of lower recruitment and training costs, lower workers' compensation costs, and fewer on-the-job accidents; a 75 percent reduction in in-hospital alcohol and other drug abuse treatment costs at Gillette Company; a reduction in absenteeism and workers' compensation insurance costs at Sawyer Gas Company and at Oregon Steel Mills. Source: The Economics of Drug-Free Workplace Programs. Marsh and McLennan Companies (1994)

8.      A study of 122 staff who used the EAP at the University of Michigan showed that the university saved a minimum of $65,341 over a five-year period for those employees because of improved retention rates and reduced sick leave. The study showed strong evidence that those employees who used the EAP services took less sick leave and were retained in the work force for longer periods of time than the overall staff. Source: "Michigan Study Shows EAP Clients Use Less Sick Leave, Stay Longer," by Keith Brubnsen, MSW, CEAP, published in the EAPA Exchange, (August 1994), EAP Association.

9.      Up to 68 percent of all workers will, at some time, experience workplace problems severe enough to prevent them from coping with day-to-day duties. Source: "Not just a Handout," by James Tittemore, published in the CA magazine (August 1994)

10.  A study performed at Southern California Edison to determine the impact of EAP case management on healthcare claims filed by employees with substance abuse problems showed that the EAP's approach was more effective at reducing overall healthcare claims costs than the company's health plan alone. Source: "The Value of EAP Case Management, by Patrick Conlin, Thomas M. Amaral, and Kirk Harlow, published in EAPA Exchange, (May/June 1996), EAP Association.