EAP Value
· Return on Investment
SEARCH CITY OF MIAMI:
employee relations:   home | contact us | faq | job openings
Return on Investment

EAPs and Return on Investment…

Employer sponsored EAP programs can produce less obvious added benefits and savings related to disability costs, medical costs, pharmacy costs, and worker’s compensation costs. Anecdotal evidence as well as formal program evaluations attest to the cost effectiveness of EAPs. Estimates of the savings-to-investment ration range from 1.5:1 to 15.0:01 depending on the size of the company and the nature and extent of the services offered.

Cost-benefit studies analyzed by the US Chamber of Commerce 1998 analysis of various corporate internal research has shown consistent encouraging results of EAP implementation including:

  • Performance & Productivity Enhancement: When EAP services are provided work loss was avoided in 60% of the cases with an average savings of 17 hours per case. 72% of the cases showed improved work productivity with an average gain of 43%. (Attridge, American Psychological Association Annual Meeting, 2001)
  • 75% of the employees with declining productivity, who utilized the EAP, returned to satisfactory or above satisfactory performance reviews. (J.C. Penny)
  • Accident Reduction: 70% decrease in job-related accidents among EAP participants (Kimberly Clark)
  • Decreased Grievances: 52% decrease in grievances and disciplinary actions (General Motors)52% decrease in grievances and disciplinary actions (General Motors)
  • Improved Attendance and Labor-Management Relations: 52% decrease in absenteeism and 78% decrease in grievances among participating EAP employees (Northern Railway)
  • Decreased Job Turnover: 12% decrease in turnover, 39% decrease in voluntary terminations, and overall savings of $9.00 for every $1.00 spent on the EAP (Russell Corporation)
  • 81% of the employees who used EAP services remained in their job. (ITT)
  • Reduced Sick / Accident Leave: 38% decrease in sick leave and 62% decrease in the number of injury days in a one-year period (Philadelphia Police Department)
  • Reduced Disability: 46% fewer sickness disability cases, 63% decrease in off-duty accidents, 81% decrease in on the job accidents among employees utilizing the EAP (Illinois Bell Telephone)
  • 39% decrease in disability payments for EAP users (International Harvest)

Changing employee attitudes and values support the intangible ROI of EAP programs:

  • Work-Life Balance Needs: 57% of the class of 1999 graduating business students in 11 countries indicated that attaining work-life balance is their top career goal. (Pricewaterhouse Coopers Survey, 2000)
  • A recent news article cited a study on motivating employees that indicated the top 10 factors people want from their jobs. Help with personal problems ranked number 3 -- higher than what most managers would expect such as interesting work, high wages, and job security. (Ithaca journal, November, 23, 2005)
  • Morale Improvements: 35% of companies who offer EAP services indicate an increase in service offerings since the 9-11 terrorist attacks. 57% of these companies agree that their employees’ attitudes have changed for the better. (Cigna, 2002)
  • 74% of employees who work for firms that offer EAP services for workplace support find it valuable. (Cigna, 2002)

© 2010 City of Miami
employee relations:   home | contact us | faq | job openings