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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.
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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.
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TABLE
I:
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What
You Should Get for Your Dollars
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Services:
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Benefits:
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- 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
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- 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
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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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