Want to know the pros and cons of EAP? Are you trying to decide whether you should provide employee assistance benefits for your employees? If so, you’ve come to the right place. The need for effective employee assistance programs (EAPs) has never been greater due to the ongoing COVID-19 pandemic and the rise of remote and hybrid work.
Still, an EAP is a serious investment. Before you make a decision, it’s important to consider the advantages and disadvantages of EAP. That way, you’ll be able to confidently answer the burning question: is an EAP program really right for your business?
What Is EAP?
An employee assistance program (EAP) helps employees identify and resolve problems that can negatively impact their job performance, creativity, and productivity. These programs can be useful for addressing both non-work and work-related matters.
Though most EAPs have a similar purpose — to help employees — they can look very different across organizations.
An EAP at one company might involve fitness programs and a gym membership, especially if workers sit at a desk all day. Another might offer free counseling sessions or a crisis hotline because employees regularly encounter high-stress situations.
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There are so many different dimensions of wellness — including financial wellbeing, emotional health, mental stability, and physical condition — that organizations might choose to focus on. Many companies choose to combine a diverse mix of different solutions and services so that employees can experience a full spectrum of care.
Though main objective of any EAP is to enhance organizational performance and safeguard employee productivity, the EAP’s design and implementation will often depend heavily on what the organization’s employees want, the perspectives and values of the HR managers, and the willingness (or lack thereof) of the C-suite to invest in employee wellbeing.
Pros and Cons of EAP
Pros of EAP
1. EAPs can reduce employee absenteeism and improve engagement
When employees don’t have healthy ways to deal with pressure and stress, it can manifest as absenteeism. If the issue spreads to multiple employees, companies can encounter increased labor costs, higher administration costs, and decreased productivity.
Well-designed EAPs equip employees with the tools needed to handle stress, anxiety, and depression. According to a study by Federal Occupational Health, companies with EAP programs saw a reduction in absenteeism by 69.2%. Not only that, but they also experienced a significant increase in employee engagement and a notable decrease in workplace distress.
2. EAPs improve employee retention
There are plenty of reasons why an employee decides to quit their job. Some include: not having access to resources, being unable to maintain a sufficient work/life balance, or feeling overworked.
When coupled with changes in culture, EAPs help your staff to confidently work knowing that they’ll get the support and understanding they need. In other words, an EAP can serve as a form of assurance to your employees that you care about their long-term health.
Employee turnover isn’t just frustrating to deal with. It can deplete the morale and trust of remaining employees and siphon funds that could’ve been used for business growth or product development. As a matter of fact, it can cost you two times a worker’s annual income to replace them.
But how does EAP help to decrease employee turnover?
Here are a few ways that EAP programs help reduce turnover rates in the workplace:
1. Encourage a welcoming corporate culture
Workers are more likely to be interested in their work when they are aware of the benefit programs that are available to them to help them deal with personal and professional challenges.
2. Boost employee satisfaction
Employees who readily reach out to EAP for assistance from EAP providers are better able to be more productive, stay focused, and handle stress. These workers show a more positive attitude at work and perform better on the job since they are generally happier.
Furthermore, happy workers are less likely to suffer from depression or other chronic illnesses, which results in lower turnover and fewer sick days.
3. Evaluate the well-being of employees
EAP programs help to track how employee wellbeing fluctuates over time.
3. EAPs help to reduce the frequency of disruptive crises
Mental or emotional trauma can manifest as physical illnesses and vice versa. Sadly, many employees feel pressured to “be okay” instead of taking the time to address their experiences. It’s not uncommon for employees who do this to operate at lowered capacity for months on end, then ultimately experience a highly disruptive crash.
Great talent is a finite resource like any other; it’s worth the effort and energy to support employees. Prevention is far more effective and cost-friendly than treatment.
Cons and disadvantages of EAP
Now that you know the pros of EAP, let’s discuss some of its cons.
1. EAPs can take a lot of time and energy to implement
An EAP is a type of widespread change in the way things are done. Not everyone will adapt quickly or even welcome the change, even if it’s intended to support them.
For example: Though tech-savvy millennials and Gen Z workers can take quickly to a digital EAP, older employees might hesitate to engage in a virtual therapy session — especially if the user interface isn’t intuitive. Therefore, it’s important to set realistic expectations about EAP usage and to carefully consider your workforce’s unique makeup.
The most effective method to a seamless EAP is simply to partner with an experienced provider that can work closely with you to track and boost engagement. These providers normally have access to rich data that can inform each next step.
2. Many EAPs lack customization and personalization
Most employees have very different wellbeing concerns, even if they have the same background or work on the same team. It’s difficult to adequately address such complexity; many wellness programs and mindfulness apps apply a one-size-fits-all approach to any and all users.
The best employee assistance programs deliver customized, personalized care that go beyond rudimentary assumptions of wellbeing needs. Employees can get the help they need, whether that looks like financial coaching, nutrition counseling, regular yoga sessions, or pre-recorded health content that they can watch on their own time.
3. EAPs may not offer enough touch points to truly change behavior
The goal of an EAP is to support employees so that they can achieve healthier behaviors and patterns. But many corporate wellness programs fail to build the context and connection needed for lasting change.
For example: a month-long employee wellbeing challenge can stir up excitement and increase camaraderie between employees while it runs. But what happens after the competition ends and the prizes are handed out?
In the world of retail, there’s plenty of talk about “omnichannel marketing” — the concept that businesses must engage customers on multiple different platforms and with numerous tailored messages to successfully nurture a sale. Likewise, a great EAP will continually engage employees and empower them with the tools, resources, and community needed to strengthen their wellbeing. This continual engagement will continue long after the preliminary event or first point of contact.
It’s Time to Introduce an Employee Assistance Program to Your Company
Are you concerned that the cost of an EAP program will outweigh the advantages even if it continues to boost your company’s productivity? Don’t be.
According to the Employee Assistance Trade Association, for every $1 invested in the employee assistance program, the typical financial return on investment is $3 or higher. This program not only pays for itself, but it also boosts your bottom line as the productivity of your employees improves.
As the EAP provider of choice for leading employers in APAC, MindFi has rich experience ensuring that employees feel truly supported on their journey of wellbeing. By partnering with MindFi, you’ll gain the dedicated support of our Client Success team and a group of certified therapists and psychologists. Beyond that, we’re more than happy to customize our mindfulness app with content and features that work for you. Reach out to us today to learn about the different disadvantages and advantages of an EAP, and how you can unlock your employees’ full potential.