Cost-Benefit Services

Return on Investment
Did you know that by investing in one of our workplace programs, may it be a traditional EAP, work-life services or a substance abuse specific program, you will earn a significant return on your investment? Check out these statistics on . . .

• Absenteeism & Productivity Savings
• Increased Retention & Reduced Turnover
• Health Claims Savings
• Overall Return on Investment

Absenteeism & Productivity Savings:

• In 1 study, work loss was avoided in 60% of cases with an average savings of 17 hours per case. 72% of these cases showed improved work productivity with an average gain of 43%.¹
• Another study looked at legal/financial work life- services, finding that work loss was avoided in 39% of the cases and that work productivity was improved in 36% of the cases.²
• A McDonnell-Douglas study compared EAP cases with a control group of employees who accessed their health services directly without first contacting the EAP. It was found that employee absenteeism was lower for the EAP users than the non-EAP user group. In fact, for those who presented with alcohol, tobacco and/or drug problems, the absenteeism rates were 44% lower; for those presenting with psychiatric conditions, the rates were 34% lower. ³

Retention & Reduced Turnover

• A study of Chevron's EAP in 1992 found that there were 37%-46% fewer terminations, with savings of $50,000 per case for avoided turnovers.⁴
• The McDonnell-Douglas study mentioned above also found that over 4 years, employee turnover was 7.5% for EAP users, while it was 40% for non-EAP users who accessed their health services directly for alcohol related problems and 60% for non-EAP users who accessed their health services for psychiatric assistance. ⁵

Health Claims Savings

• The International Foundation of Employee Benefit Plans surveyed 185 benefit plan administrators about substance abuse services for multiemployer fund participants and reported:
• The EAP resulted in reduced health plan costs for 66% of respondents;
• 49% of those surveyed reported reduced disability costs thanks to the EAP; and
• The EAP resulted in reduced workers compensation costs for 41% of respondents.⁶
• An Abbot Labs Study reported a 6:1 return on investment due to lower overall net inpatient & outpatient medical costs for EAP cases.⁷

Overall Return on Investment:

• A $2-$8 return on every $1 spent for an EAP was reported in 1998 based on fewer accidents, less employee theft, less absences and/or higher productivity, lower health care and lower disability costs.⁸
• A 1990 report by the Department of Labor found that for every dollar that an employer invests in an EAP, their will be a savings of anywhere from $5 to $16.⁹
• Another study found an average of a $3.00 return for every $1.00 invested in the EAP; when employees were recommended to the EAP by their supervisor due to poor job performance, returns significantly increased to $13.00 on every $1.00 invested.¹⁰
• The establishment of an EAP with an emphasis on safety awareness saved one small company (70 employees) $75,000 by reducing its workers' compensation and vehicular accident costs.¹¹

¹Attridge, M. (2001, August). Personal and Wok Outcomes of Employee Assistance Services. Presented at the American Psychological Association Annual Meeting. San Francisco, CA.
²Attridge, M. (2002, June). Employee assistance program outcomes similar for (phone and In-person) and legal/finance consultation clients. Presented at the American Psychological Society Conference, New Orleans, LA.
³Stern (1990). Why EAPs are worth the investment. Business and Health, 14-19. Washington DC.
Collins, K. r. (1998). Cost/Benefit analysis shows EAPs value to employer. EAPA Exchange, 28 (6), 16-20.
⁴ Stern (1990). Why EAPs are worth the investment. Business and Health, 14-19. Washington DC.
⁵International Foundation of Employee Benefit Plans - Survey Results May 2002: Substance abuse services for multiemployer fund partic
⁶Dianas, C. (1996). EAP cost-benefit performance. EAP ⁷ Dianas, C. (1996). EAP cost-benefit performance. EAP Exchange, May/June, 23-24. Results of claims-based cost-analysis for two year follow-up of EAP users and a comparison sample of non-users of EAP who were employees with mental health/substance abuse claims.
⁸Goldstein, T., Esq., American Compensation News, February 1998.
⁹What Works: Workplaces without Drugs. U.S. Department of Labor (1990)
¹⁰As reported by Masi Research Consultatants, Inc. based on their study with the federal government, Merrill Lynch & Co and the National Fire Protection Association.
¹¹Substance Abuse Prevention: It's Your Business. Center for Substance Abuse Prevention. U.S. Department of Health and Human Services (1992).

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