A large client headquartered on Long Island with 3 satellite offices in the tri-state region. Total employees in all locations: 215.
During one of our scheduled monthly update meetings with this client two years ago, the director of human resources had complained of a substantial increase in the number of employee absences due to work-life stressors, drug issues and personal legal matters. The director also noted a loss of productivity even when any individuals were at work since they would often spend a large amount of time trying to resolve matters related to the issues they were experiencing via the telephone calls and through emails.
MBA Solution Presented
Our MBA team analyzed the data presented by the HR director and proposed implementation of an Employee Assistance Program (EAP) as a way to reduce employee absenteeism by assisting employees in the handling of their personal issues. A successfully integrated EAP could enhance the employer benefit package and increase productivity in the office. As a bonus, extensive use of the program could yield long term additional utilization savings to the employer.
An EAP program provides assessment and services for addressing a variety of personal concerns that interfere with an employee’s well-being and work performance. And with today’s more stressful home and workplace environments, stress related issues have become both more numerous and more severe. Providing employees with the ability to resolve these issues early before they escalate proves beneficial both to the employee and the employer.
With the client’s endorsement, our specialists analyzed the demographics of the employee population and reviewed all available utilization reports from their medical carrier. The team reviewed our portfolio of endorsed EAP providers and chose one best able to meet our client’s objectives.
The first full year following implementation of the program, we were pleased to provide positive results. Due to a well coordinated effort on the part of our team and our client’s management team to communicate the mechanics and benefits of the program to employees, the implemented plan has garnered significant employee usage. The HR team has indicated a decrease in time lost due to personal issues.
Most studies show an EAP program returns $2 in savings for every dollar spent. In this situation, that translates to an annual savings of approximately $12,000.