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Return on investment (ROI) for
employee assistance programs has been studied repeatedly, yet definitive
proof of its benefit remains difficult to demonstrate. For companies
and managers seeking hard evidence to justify expending company resources,
they may be somewhat frustrated in their search.
Companies do make claims of positive return on investment such as reported
in the Personnel Journal, February 1993, Vol.72, No.2 where McDonnell
Douglas Corp. is quoted as saying:
“We have data for the cost of troubled employees, based upon productivity,
health care use, disability and worker’s compensation costs, and
we have data for their impact on the bottom line. We factor in the cost
of the (EAP) program and the cost of treatment. We subtract the cost
savings revealed by people who have used EAR (their internal EAP). We’ve
tracked the cost of the (EAP) program and we know that we have saved
money.”
The return on investment has been identified as varying
between $2 to (as high as) $64 for every dollar spent. However, the
human resource
costs and other business indicators used to studies to demonstrate
ROI are not consistent. Factors for consideration can include absenteeism,
health care costs, litigation, damage, theft, productivity, turnover,
retraining, accidents, lost business, customer relations, short and
long
term disability, conflict, team functioning, or morale. EAPs could
be seen as having some impact upon all of these.
Most successful organizations
view EAP as an important contributor to the success of their business
and a valuable benefit for their employees.
Employers are convinced that EAP makes a difference. Why? Organizations
recognize that having the ability to provide a troubled employee with
timely and appropriate services results in reducing the financial and
human costs associated with an employee who is not fully functioning.
Valuable employees have been assisted in dealing successfully with
issues that threatened their health, relationships, energy and ability
to contribute
strongly in the workplace.
An EAP that is successfully integrated into
the organization’s
other employee support systems with programs and services that include
wellness, team building, coaching, conflict resolution, critical incident
response, assessment, counseling and referral can, and does, add value
to your company. Employees welcome this benefit, they use it, and they
report consistently in impact surveys that the EAP made a difference
in their lives, and in the quality of their work.
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