Why does my company need an EAP?
Consider these following statistics and the impact they could have on your workforce:
- More than 54 million Americans have a mental disorder in any given year, although fewer than 8 million seek treatment. (Surgeon General’s Report on Mental Health, 1999)
- Depression and anxiety disorders – the two most common mental illnesses – each affect 19 million American adults annually (National Institute of Mental Health, 1999)
- The estimated economic burden of depression was $43.7 billion: $31.3 billion for indirect costs such as decreased productivity and lost work days, and $12.4 billion in direct costs such as medication and physician time (NMHA, 2000)
- Grief - 30 million people grieve each day in the United States. Employers can't afford to ignore grief. (Source: United Behavioral Health)
- Up to one-half of all visits to primary care physicians are due to conditions that are caused or exacerbated by mental or emotional problems (Collaborative Family Healthcare Coalition, 1998.)
- Two out of ten people suffering from clinical depression start out with stress.
- Psychological problems account for 61% of absences from work each year, 65-85% of employee terminations and 80-90% of industrial accidents.
- An estimated 1,000,000 workers are absent on an average of workday because of stress related complaints. (The American Institute of Stress, 2000)
- Unscheduled absenteeism costs employers as much as $688 per employee per year.
- 1/3 of the workforce cares for children under the age of 18. Childcare referral programs can reduce employee absenteeism due to childcare by 40%.
- 33% of employees lose time from work due to caregiving.
- Approximately 25% of working parents worry about their children during the day.
- 90% of the population has a need for legal or financial services.
- 70% of the population does not seek legal counsel due to fear of the cost.
- 40% of industrial fatalities and 47% of industrial injuries are linked to alcohol consumption and alcoholism.
- 36% of all employee thefts were directly related to drug problems of abusing employees.
- Drug-reliant employees incur 300% higher medical costs and benefits compared with healthy co-workers. (U.S. Chamber of Commerce, Workers at Risk: Drugs and Alcohol on the Job. 1990)
- Nearly 25% of a drug dependent employee’s salary is lost through increased use of medical benefits.
- 70% of all current adult illegal drug users are employed. (CSAT, 1999)
Can you afford NOT to have an Employee Assistance Program? Consider these following statistics and the impact they could have on your workforce:
Benefits of an EAP
- For every dollar invested in an EAP, employers generally save anywhere from $5 to $16. (USDL, What Works: Workplaces Without Drugs)
- Use of EAPs have been shown to result in:
- 66% decline in absenteeism after alcohol abusers have been identified and treated.
- 75% reduction in inpatient alcohol and other drug abuse treatment costs. (SAMSHA, 1995)
- 33% decline in utilization of sickness benefits; 65% decline in work-related accidents; 30% decline in workers’ compensation claims.
A McDonnell Douglas Corporation study in 1989 found a 35% reduction of overall health care costs.
- 28% savings on mental health benefits. (Journal of Health Care Benefits, January/February 1992)
- 35% reduced turnover and 14% higher productivity. (Substance Abuse and Mental Health Services, 1995)
Specific success stories include:
- General Motors Corporation EAP saves the company $3,700 for each employee enrolled in the program. (ASIS OP Norton Information Resources Center, Substance Abuse; A Guide to Work Place Issues, November 1990)
- United Airlines estimated it gets a $16.95 return for every dollar invested in employee assistance. (ASIS OP Norton Information Resources Center, Substance Abuse; A Guide to Work Place Issues)
- Philadelphia Police Department employees undergoing treatment reduced their number of sick days by an average of 38% and their injured days by 62%.
- Oldsmobile’s Lansing, Michigan plant saw these results in the year after its alcoholic employees underwent treatment: lost man hours declined by 49%, health care costs decreased by 29%, leaves by 56%, grievances by 78%, disciplinary problems by 63% and accidents by 82%.
- An estimated $1,750 savings per employee at Warner Corporation because of lower workers’ compensation costs and fewer on the job accidents. (Mash & McLennan Companies, The Economics of a Drug-Free Workplace, 1990)
- 75% reduction of in-hospital alcohol and other drug abuse treatment costs at Gillette Company. (Mash & McLennan Companies, The Economics of a Drug-Free Workplace, 1990)
A study prepared for the Model State Drug Laws shows:
- Addictions treatment represents just 1% of total healthcare costs in the U.S. compared to 15% when untreated.
- Identification, treatment and follow-up can bring the alcoholic to near-normal healthcare usage ($50 baseline) within one to two years – and that low level endures for at least seven years.
- Five years after treatment, healthcare costs for the family of the alcoholic can fall below the baseline.
A study published in 1998, and sponsored by the Health Enhancement Research Organization, surveyed over 46,000 workers at several U.S. companies and reported:
- 18.5% of the employees were screened as highly stressed and their medical claims averaged 46% higher than those without high stress.
- 2.2% of the employees were screened as depressed and their medical claims averaged 70.2% higher than those without depression.
- Combined over 20% of the employees were either highly stressed or depressed and averaged approximately 49% higher health care costs.
- A study published in 2000 by Abbott Laboratories documented that clients whose Mental Health treatment was managed through an EAP showed annualized savings of $2,200 per year over a 3-year period vs. those clients who were not under an EAP.
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