Refreshing Returns On Employee Assistance Programmes
Employee Assistance Programmes (EAPs) enable employers to support their employees with all manner of problems they may be experiencing – from poor physical or mental health, to issues of emotional wellbeing and situational changes happening in the workplace or at home. They are an excellent way of creating a happier, healthier workforce where people are valued and supported… Where employers have the processes in place and peace of mind that they can deal with any given situation.
While many businesses won’t have considered offering EAPs because they don’t fully understand the benefits they can afford, others overlook them because of a perceived cost barrier. However, as we have written before, Employee Assistance Programmes are high impact and cost effective. But don’t just take our word for it. New research underlines just how much ROI businesses can get from EAPs.
RETURNS ON Investment
One of the biggest challenges for employee benefits advisers is quantifying and demonstrating the tangible return on investment (ROI) of Employee Assistance Programmes for UK employers. Now, a new study reveals just how good an investment EAPs can be for businesses.
According to the study from the Employee Assistance Professionals Association (EAPA), which set out to calculate the financial value of EAPs when it comes to employee absence, presenteeism and productivity on businesses, the ROI on EAPs for UK employers is significant. The research revealed that for every £1 spent by organisations on EAPs, the ROI was £7.27, i.e. more than seven-fold.
The figures, presented as part of the report – Financial Return on EAPs 2020: How Does Your Organisation Compare? – show that this significant ROI is realised regardless of company size, sector, geographical location or service used.
For comparison, a Deloitte report released earlier this year, titled Mental health and employers: the case for refreshing investment, revealed that for every £1 spent on tactics for supporting employee mental health in general, employers realised an ROI of £5.
SCALE & CONSISTENCY
According to the EAPA’s new findings, EAP usage across the workforce is also consistent, with around 10.4% of employees taking advantage. In terms of ROI across sectors, transport and utilities reap the greatest reward (£8.61 for every £1 spent), with manufacturing (£7.68) and finance (£7.64) not far behind. The lowest industries in terms of ROI are agriculture (£4.12) and charities (£7.11).
Speaking about the findings of the research, Paul Roberts, project lead and EAPA executive, said: “The new data is valuable evidence of the scale and consistency of ROI from EAPs. Wellbeing resilience, more than ever, is a pillar of organisational performance, and HR need proof of how their approaches are working.
“With more home working and flexible arrangements HR need to ensure there are constant communications around EAPs and ensure the role and range of EAP services is flagged at every key point in an employee’s career: when they move between roles, from full-time to part-time, or change to flexible working.”
The EAPA EAP ROI Calculator is a free tool to help businesses figure out exactly how much return on investment they can get from Employee Assistance Programmes.
Summary
Employee Assistance Programmes are providing essential mental health support to employees during these pressured times, and for a relatively low cost. Like any purchase, value is derived from a cost versus benefit calculation, and this is where EAP’s excel. Importantly, in addition to support for employees, EAP’s can be a vital resource for line managers and HR personnel. Please get in touch if you would like to know more.
