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THOMAS R. BLUMENTAL, LICSW, CEAP is the Manager of the Employee Assistance Program of Health Resources, Woburn, MA. Mr. Blumenthal has 10 years of EAP experience and has significant experience in the areas of account management, consultations to management, and clinical services and trainings.



An Outsourced EAP…
Managing Costs and Improving Performance


Pressures on and off the job have an impact on your employee's productivity. The stress created by a dynamic corporate environment can take a heavy toll on employees and their families. The trend toward leaner, more efficient companies has created for many an uncertain world, characterized by restructuring, re-engineering, and downsizing.

Off the job, there is less leisure time, with changing family structures taking hold. Single parents, dual-income households, and a generation of baby boomers with responsibility for children and aging parents struggle to balance work and family life.

An outsourced Employee Assistance Program (EAP) sharpens an organization's effectiveness and simultaneously helps employees operate at peak performance. Companies are realizing hard savings well beyond their investments, making an EAP a self-generating corporate asset.

An EAP is a confidential counseling, support, and work/life service designed to assist employees and their families with any type of personal problem, including such concerns as family stress, couples' conflicts, substance abuse, depression, and anxiety. In addition, EAP's typically provide referral services for legal, financial, vocational, child care, and elder issues. The fundamental purpose of an EAP is to make help easy and accessible for employees who need it. It's a win-win for employers, because if employees get help for their personal problems, they are more productive at the workplace.

EAP's typically provide other adjunct services to assist organizations dealing with the psychological aspects of employee behavior. EAP's consult with managers and supervisors about how to deal with the "troubled" employee. They also offer assistance during crises, whether it's a workplace accident, sudden death, threat of violence, or tragedy that affects everyone.

TABLE I:

What You Should Get for Your Dollars

Services:

Benefits:

  • Assessment
  • Referral
  • Brief Counseling
  • Educational Programs
  • Trauma Debriefing
  • Supervisory Consultations
  • Conflict Negotiation
  • On-Site Services
  • DOT Compliance
  • 24-Hour Emergency Services
  • Personalized Account Management
  • Policy Development
  • Threat of Violence Assessment
  • Timely Promotional Material
  • Additional Options for Legal, Child Care, and Elder Care Referrals
  • EAP Web Site
  • Work/Life Web Site
  • Fewer Medical Claims
  • Reduced Mental Health and Substance Abuse Costs
  • Less Absenteeism
  • Fewer Workplace Accidents
  • Lower Workers' Compensation Costs
  • Improved Morale and Lower Employee Turnover
  • Lower Recruitment and Retraining Costs
  • Improved Corporate Focus
  • Better Decision Making
  • A Return on Investments


In addition, EAP's provide education and assistance on ways to deal with substance abuse in the workplace. Supervisor training on how to use EAP services is a critical component.

Increasingly, EAP's are providing on-line services as well. A web based program should allow a user to access EAP information, health and wellness updates, articles on relevant topics, as well as contact an EAP counselor. In addition, some EAP web sites offer significant work/life information. This may include news and articles on work/life subjects, as well as the ability to obtain customized searches in such areas as child care, elder care, adoption services, and academics. Providing employees and family members additional information in this format promotes increased access and use, and is increasingly a core part of EAP services.

Consider the Savings

Nearly 90 percent of all Fortune 500 corporations have incorporated an EAP into their operating policy, with a trend of many small and medium-size companies following suit. Companies are realizing that in addition to improved employee morale, there is a significant return on investment.

Several national studies have demonstrated that EAP's provide a payback of between $4,000 and $7,000 for every $1,000 invested. For example, McDonnell Douglas' EAP showed a 4 to 1 savings derived from reduced medical claims and lowered absenteeism. General Motors demonstrated a 40 percent decrease in lost time, a 60 percent decrease in sickness and accident benefits, and a 50 percent decrease in grievances.

Abbot Lake County showed a 6 to 1 payback through savings in health insurance premiums. EAP's are largely a preventive services. By encouraging employees and their families to seek help for their problems, EAP's prevent problems from getting worse and often keep clients from needing expensive mental health treatment including hospitalization.

When referral is necessary, the EAP can ensure the employee is connecting with the most appropriate service and, therefore, help avoid the inefficiency that often occurs when the employee seeks treatment on his or her own. Supervisors are provided the tools to address employee problems as they show up at work and, hence, deal with the impact of substance abuse, depression, or domestic violence and help identify and encourage those employees to seek help. (Table 1 shows what companies can get for their investments.)

Example. One company had a severe safety problem with a total of 415 workdays lost because of injuries. The Human Resources Manager suspected that there was a significant substance abuse problem among employees. He implemented an aggressive safety program, which included an EAP. The EAP provided training to supervisors with a particular focus on the identification of proper management of employees with substance abuse issues. All employees were oriented to the program. Mailings were sent to family members. The employer also implemented a drug testing program, and all individuals with a positive test were automatically referred to the EAP. Employees used the EAP for a variety of reasons including family and mental health concerns. Fifteen percent of the employee population used the program during the first year. The annual number of lost workdays decreased 85 percent to 64, which also significantly reduced worker's compensation costs for the company.

Example. A food processing company concerned about its high turnover rate implemented an EAP to assist in reducing the turnover rate. All levels of management were trained in how to use the EAP, how to identify employees who are in need of assistance, and how to refer them to the EAP. Utilization was high both with employees' use and management consultations. The turnover rate decreased from 24 percent to 16 percent the first year and continued to decline in the following years. EAP's offer a range of services that can significantly affect a company.

Customization

An effective EAP can be tailored to the particular culture of the organization by providing more than counseling services alone.

Example. In a large manufacturing company, a union leader wanted guidance from the EAP about a situation in one work group. In a four-person team working with potentially dangerous equipment, three team members felt they were jeopardizing their safety if they continued to work with a coworker who was obviously impaired from drug use during the workday and who had acknowledged he was out of control.

The EAP coached the union on how to use an intervention method to help the employee seek treatment. Management, the union, and the EAP discussed how to deal with substance abuse in the workplace more systemically, Ultimately, it was decided to pilot a three-hour joint union-management training on addiction, enabling and intervention. The program, which was created for this specific simulation, was so successful that it was used at multiple plant sites throughout the company and as a model for other union-management issues in one division.

It is critical to select an EAP that will be thorough in taking the time to meet with union leadership and employees, attending union-management meetings for strategic planning, building relationships with both union and management, and creating an extensive training program. Businesses usually presume they are just getting "good counseling" when purchasing an EAP. For EAP's to be successful, it is essential to include consulting, political acumen, relationship building, and creative training.

A significant role of the EAP is to market the program internally so that employees are continually reminded of the service. As part of implementation, all employees are oriented to the program. Often, EAP's offer wellness topics such as "Stress Management," "Balancing Work and Family," and "Dealing with Change." In addition, EAP's should provide extensive training on topics such as sexual harassment, diversity, Department of Transportation (DOT) training, and programs such as "How to Work with Difficult People." Providing posters, newsletters, and paycheck stuffers are also ways to promote services. Usually, an account manager is assigned who becomes acquainted with the organization, assesses its particular needs, and plans the program accordingly.

The Outsourced Approach

The national trend during the last decade has been to externalize the EAP. Here are some reasons why:

Confidentiality. Confidentiality, or at least the appearance of confidentiality, can be more difficult to maintain if the program is internal. The internal EAP consultant is an employee of that business and, therefore, can more easily be viewed as protective of his or her interests and be seen as aligned with management. It can be a difficult juggling act for the internal EAP consultant to be seen as an advocate of employee and management interests.

Specialization. With an internal program, there would likely be few EAP consultants, and they typically need to be generalists. This would not allow for as many choices as available in outsourced EAP's in terms of gender, ethnicity, and clinical or training specialty areas.

Malpractice and liability. The outsourced program can assume full responsibility for treatment and case management. With an internal EAP, the business has potential liability if anything goes wrong.

Coverage. The outsourced EAP can offer coverage 24 hours a day, 365 days a year. To provide around-the-clock availability, including the consultant's vacation and sick time, the internal program may need to contract with other providers or an emergency service.

Access. The outsourced model offers many offices as well as on-site accessibility. Off-site is particularly important for family members as well as those employees particularly sensitive to confidentiality issues. To duplicate this accessibility, the internal program may need to rent additional office space.

Supervisory involvement. The internal model tends to have a higher rate of supervisor referrals. The increased presence of the on-site counselor encourages informal relationships so that managers more readily turn to the EAP counselor when they are having difficulties with an employee. The outsourced EAP has to work harder to develop the supervisor's trust. This is why some amount of on-site presence is helpful for the external provider.

Communication. The internal model has a slight advantage. Being part of the system, the internal consultant tends to have more access to confirmation about the system and a keener understanding of the impact the system has on employees. This can backfire, however, when the consultant loses objectivity and reacts as part of the system.

Educational programs. Because of increased staffing, the outsourced program can offer more diversity in terms of seminar topics and training approaches. To provide comparable programs, the internal EAP must contract out.

Costs. At first glance, the internal EAP often appears to be less expensive. However, this might be deceptive unless ancillary costs are taken into account to make the internal and external models equivalent. These costs may include additional office space, evening, weekend, and vacation coverage, outside consultants, malpractice and liability insurance benefits, and program materials. Employers need to consider what total services are actually being provided dollar for dollar.

For many years, EAP's have been perceived as simply a human resources benefit, but today's EAP is finding its purpose in Corporate America. It is now valued not only as a means to provide for a compassionate culture, but also as a way to capture the elusive competitive edge. Outsourcing the EAP helps businesses obtain an new level of production and profitability with a highly motivated workforce. An outsourced EAP may be the best thing a company can do for itself and its workforce.


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