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Why does my company
need an EAP?
Consider these following statistics and the impact they could have
on your workforce:
Mental Health
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.
Absenteeism
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.
Work/Life Issues
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.
Substance Abuse
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.
For additional
information, or a custom proposal, please contact us.
It' s all about employees;
always has been, always
will be.
Providers
interested in joining our network, Click Here
Corporate Headquarters
10370 Richmond Ave. | Suite 1100 | Houston, Texas 77042
Phone: (713) 781-3364 | Fax: (713) 784-0425
Email: info@ieap.com
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