For years, EAP’s have used anecdotal evidence as the measuring stick to calculate the impact an EAP benefit has on organizations and the lives of their employees. Now, recent studies provide quantifiable evidence to calculate Return on Investment.
When the challenges employees face in their lives are subsequently addressed by the EAP, the company’s bottom line is improved through productivity and increased engagement. (For testimonials about what Triad EAP can do for your organization, visit www.triadeap.com/testimonials.cfm).
This measurable information was gathered from the 2017 report from the Workplace Outcome Suite from Chestnut Global Partners, which polled 17,000 people before and three months after completing EAP counseling services. Respondents answer questions about costs of productivity such as presenteeism and absenteeism but also engagement indicators such as job engagement and overall life satisfaction.
To apply ROI calculations to the data above, the following assumptions must be made:
- 25% of employees are facing challenges at any given time
- Of those who seek help through the EAP, 90% reach their goals
- There is a 15% productivity cost from absenteeism and presenteeism
Home Health Agency: Engineering Firm:
Number of employees 100 100
Average wages per year $25,000 $55,000
Anticipated utilization 5%* 5%*
EAP cost per employee per month $1.95 $4.00
Total savings based on EAP use $16,031 $35,269
Cost of the EAP $2,340 $4,800
Savings less cost of the EAP $13,691 $30,469
Return on Investment 5.9 6.3
Internal rate of return 585% 635%
*5% utilization rate is a conservative estimate. Triad EAP’s 2017 average is 8.2%.