Employee Assistance Programs - Essay Example

Employee Assistance Programs In an effort to improve employee productivity, employers are increasingly sponsoring employee assistance programs (EAPs) which are designed to detect and solve common employee problems including stress, health, alcohol or drug abuse, clinical depression, family, financial and various other personal matters. EAPs provide access to health care professionals who are contracted to offer short-term counseling and refer employees to the variety of specialized services from organizations or professionals available to them through the plan. Additionally, EAPs train employers, managers and business owners to identify potential problematic behavioral patterns among their employees. Employees benefit because they have an in-house resource that will help them with their personal and professional concerns and thus are able to more effectively solve their problem. Employers benefit because the workers that utilize the program experience fewer and shorter-lived problems that might otherwise have interfered with their job performance which ultimately lowers productivity and decreases the bottom line profits. Employees either confidentially request assistance or are referred by their manager if it is suspected that personal issues are causing a decline in their job performance. This discussion examines the five major types of EAP’s, thoroughly reviews why these programs are beneficial to employees and employers alike, recognizing a faulty EAP and the reasons that employees may choose not to utilize this employer provided service. Employee Assistance Programs can be categorized into five types which can be referred to as full service, peer-assisted, integrated, compliance and wrap-around versions. A Full Service EAP, as the term implies, provides a wide array of programs that are internally staffed, well-financed and entail a management support system. It likely provides on-site counseling services and takes a proactive role in managing critical employment issues such as debriefing the staff following unforeseen incidents and preparing the staff both economically and psychologically prior to changes in their job status which could include coping with planned layoffs due to corporate downsizing. Full service EAPs constantly review the employee’s needs at a particular company and develop services to meet the demands. As a result, many programs include disability, financial, legal and sexually transmitted disease counseling in addition to child and elderly parent care assistance for employees. The program is managed by an outside firm such as Value Behavioral Health or Ceridian which performs these services and offers many types of employee assistance packages. Though the full service programs are a costly up-front expense for the employer, currently in the $50 per-employee per-year range, the long-term savings resulting from a full service EAP makes it a sound investment for the future (Oss & Clary, 1998). Peer-assisted EAPs often are implemented for employees that do not have access to a formal EAP service. This is generally because the company is too small to justify the expense, the employee’s physical location within the company is dispersed over long distances or if the employees are working on a contract basis. Professional organizations such as labor unions offer peer-assisted EAP’s to its membership. The AFL-CIO, as an example, has conducted qualified counseling services for more than 60 years (Steele, 1998). Peer-assisted EAPs could be utilized if the employees are dissatisfied with their current EAP provider which could include privacy concerns, lack of certain services or restrictions on services (Bamberger & Sonnenstuhl, 1995). The Integrated EAP combines an in-house program with the services from an external EAP vendor. This type of program is commonly implemented by large labor unions or self-insured corporations. This method combines the evaluation process, actual services and employee benefits responsibilities together under one umbrella management group. This has proven to reduce conflicts and misunderstandings because these services, which remain separate in most companies, unify all aspects of an employee’s concerns regarding an EAP program. Integrating the programs reduces administrative costs and improves efficiency which lessens employer expenses. AT&T has utilized an integrated EAP for the past decade (Herpel, 1997). A Compliance EAP is designed to be a cost-effective way for employers to comply with government regulations generally regarding substance abuse in the workplace or the perception that systematic drug testing is needed in a particular job description at that company. The employer usually implements a Compliance EAP as a cost-savings measure with the focus being on counseling for known abusers, medical evaluation services and a testing program (Potter et al, 1995). Although a softer, more proactive approach, as the name implies, the program is intended primarily as a means of ensuring employees are complying with laws and workplace rules. Small employers use what is termed a Wrap-Around EAP to allow employees and their families’ access to clinical psychologists or other health care professionals at a preset price. This was developed by small employers as a reaction to limitations placed on services by managed care organizations (MCOs). “MCOs are increasingly restricting provider panels and networks, thereby imposing significant restrictions on the EAP-client relationship....[and] insurance companies continue to dictate treatment protocol under the banner of cost efficiency” (Steele, 1998). This results in loss of access to many health care options by employees of smaller firms. Large businesses are better positioned to counteract restrictions placed on their benefit package by the MCO but have the financial and organizational resources to construct personalized benefit programs. Because small companies lack these resources, they negotiate a fixed-price benefit program with an EAP. The five EAP models described are the most common and many variations exist but most all share certain aspects. An EAP virtually always provides employees with confidential access to a referral service or counselor when a need arises. Most offer to arrange an appointment with a substance abuse treatment center, mental health care professional, financial advisor, etc. and distributes numerous types of educational material designed to address various types of employee need. “Easy-to-access information on a broad array of topics and someone to listen and offer guidance are the key features of Employee Assistance Programs” (Steele, 1998). EAPs help the individual and your organization by diagnosing, counseling and/or referring these employees to the appropriate help. A business that provides its employees easy and open access to free educational material and a referral service reduces the possibility that mental health conditions will go unchecked which results in a decrease in production and an increase in the number of medical claims, a costly proposition for the employer. Employers that provide some type of EAP do so because it saves money in both a direct and indirect manner. It allows for problems to be identified before they escalate and provides readily accessible resources should an unforeseen incident occur that requires an instant response. It is viewed by the average employee as an additional benefit which raises overall moral. Mainly though, it’s an effective way to control costs. The up-front costs of an EAP are less that the ultimate costs of not having one. It is commonly acknowledged that employees are a company’s greatest asset and untreated mental, emotional and physical difficulties act to devalue that asset. “Employee personal problems result in absenteeism, lost productivity, termination and work place violence, which cost time, profits, resources and more” (“Health Partners”, 2007). Statistics provide indisputable evidence that employees who experience ongoing personal and medical problems negatively impact an employer’s profit margin. At any given time, it is estimated that at least 10 percent of all employees are experiencing some type of severe personal problem. It is this small fraction that accounts for up to 90 percent of the total number of absences in the workplace. More than five percent of corporations’ payroll expenses are related to absenteeism. Personally distressed employees have been shown to perform at a level 35 percent below the average employee. This group is a company’s biggest liability when they could be an asset with proper, confidential and free guidance. Approximately three-fourths of terminations are due to an employee’s personal problems. The costs associated with the termination, hiring and training replacement employees are vast. “Surveys show that the full costs of employee absence are more than four times total medical payments when the productivity lost from absence is added to wage replacement payments. Employers lose an estimated $52 billion each year from depression-related absenteeism and reduced productivity” (“Health Partners”, 2007). Neither employers nor employees are qualified to resolve problematic personal issues but both parties take it personally and tend to blame themselves when an employee’s job performance falls due to personal issues. This causes discouragement among employers, managers and employees. Many experiences negatively affect an employee’s state of mind such as accidents or injuries, natural disasters, layoffs, uncomfortable workplace situations, etc., which lowers productivity costing employers many thousands of dollars simply because they do not have access to EAP’s that could have dealt with the problem early on thus preventing or at least mitigating negative outcomes. With an adequate work environment that focuses on high standards, open communication and quick conflict resolution, employees become happier and more willing to take ownership in the success of the company as a whole. This engagement of the employees further leads to much more effective customer service, especially when coupled with employees who have adequate authority to deal with concerns at the lower levels, which leads to much improved customer satisfaction. Productivity is also increased when employees are satisfied as absentee rates decrease and employee turnover is reduced. When happy customers are created, they are more likely to become repeat customers and will help the company through word-of-mouth advertising. In addition, happy employees encourage other talented, motivated workers who wish to work in such a positive environment to apply to open positions within the company, increasing the company’s competitive edge in a variety of fields at once (“Employee Development”, 2003). “Companies have come to realize that a direct link can often be detected between employee well-being and employee productivity, and that the difference in value between happy and unhappy employees can often be quite profound” (Hillstrom & Hillstrom, 2002). EAP’s would cease to be financially advantageous to employers if they were intended to supply long-term care options. By simply providing trained counselors for employees to speak with in confidentiality who offers competent, specialized and subsidized treatment options keeps the input costs low. It also accomplishes the desired outcome which is keeping performance levels at an optimum. Each year, it is estimated that U.S. businesses suffer more than $300 billion because of absenteeism. The diminished levels of productivity due to stress stemming from personal issues is incalculable. “The people a business owner needs to worry about are the valued workers whose productivity suddenly and mysteriously plummets. From depression to anxiety, from drug abuse to alcohol addiction, common psychiatric disorders take a remarkable, if little-discussed, toll” (Kendall, 2000). EAPs are regarded by business professionals, if properly implemented, to be an effective means to reverse decreased performance levels among their employees. EAPs are becoming an ever increasing larger element of the employee’s benefit packages which are used by both large and small businesses to attract the better qualified candidates. Over the past two decades or so, EAPs have expanded both in number and capacity to serve differing employee needs. This expansion is the result of the changing social structure of the country. For example, changes in career and mobility patterns, technological advances, more families that earn two wages, a greater number of single parent families, etc. have greatly contributed to the creation of various forms of contemporary stresses which has led to an ever growing number of health concerns, all of which ultimately negatively affects employee productivity. Several decades ago, people would seek counseling and advice from someone they had known and been close to for many years such as their preacher, family doctor, close friend or family member. With the more mobile society of today, relationships such as these are progressively becoming more the exception. It is increasingly rare that individuals stay close with another for a long enough period of time to be able to speak about the most personal of issues. Therefore, “individuals experiencing a personal or family crisis, or who are under chronic stress, may have no place to turn for advice other than to the benefits [the EAP] offered through their workplace” (Osterweil, 1991). EAPs are a valuable tool in intervening and preventing violent actions in a place of business. Following the September 11, 2001 attacks, EAPs have directed more attention to crisis management and violence in the workplace. EAP counselors can greatly assist in helping employees to better manage their emotions during times of crisis and can organize a customized continuing preparedness program. When dealing with a potentially violent employee, a manager has the option, if they have access to an EAP counselor, to receive help to alter the disrupting behavior patterns of an employee. “Having an EAP sends a message to employees that the employer cares. Just knowing that can be a powerful incentive and hasten an employee’s desire to return to work” (Quinley, 2003). Recently, employers have been showing an increased interest in providing employees EAPs.  It is not considered unusual anymore for an employer to offer classes on stress and anger management, nutrition, weight control, relaxation techniques, exercise routines, violence in the workplace and stopping smoking among others. Employers are more likely than they used to be to arrange an employee debriefing session if a critical event occurred at a business insuring that employees could better cope with the situation. Most or all of these programs are offered by a Full Service EAP which is becoming an increasingly popular element of the total benefit package for the employees and is a cost saving measure for employers. “When employees experience personal and family crises, accidents happen, productivity declines, and companies spend more health dollars on psychological and physical health.  Subsequently, the cost of health coverage increases” (Sharma, 1996).    Many examples exist that demonstrate the cost effectiveness for employers who help their employees cope with the calamitous times in their lives. A school district administration in Florida reported that over the five year period following the implementation of an EAP, its total expenditures for employee medical care had decreased by more than half.  Sick leave requests dropped by a third.  McDonnell-Douglas conducted a study of its employees following the introduction of an EAP and found that those who sought treatment for substance abuse were absent about forty percent less than before.  Its turnover rate plummeted from forty to eight percent over a four year period. Health care costs decreased by more than 25 percent following the first year of an EAP at Campbell Soup.  “Fewer people had to be hospitalized because they sought employee assistance promptly” (Sharma, 1996).   Though EAPs are at least as beneficial to the employee as they are to the employer, the concept is still new and because of the lack of information regarding the company’s EAP, these services are seldom fully utilized.  Many are concerned that because the EAP is connected with the company, their most personal matters would be known by the boss and potentially everyone else at the job.  A drug addict, for example, would have difficulty admitting to the person that controls their employment status that they are doing something both illegal and probably detrimental to the company and its employees as well. “Surveys indicate employees fear that their supervisors will learn about their personal and sensitive information and may later use it against them” (Sharma, 1996). The confidentiality factor might take time to overcome.  Employees directly benefit from EAPs while the method is more indirect for the employer; but it remains the employers that are driving the recent growth of EAPs.  EAPs are much the same as any tool; it must be implemented correctly to work properly. There are observable indicators the EAP needs modification. For instance, if fewer than five percent of employees utilize the EAP, if the main issue that initiated the EAP remains unresolved or if an audit of the referrals indicate a unjustifiable preference for a particular employee need, adjustments may need to take place. As an example, a counselor might have an ulterior motive to refer employees to a certain health care provider. Companies should respond to the roll-out of a new EAP in much the same way it would any other major introduction to the company. It should provide sufficient literature and hold meetings to educate the new benefit to employees and ensure an avenue for feedback. Then, follow-up on the progress of the program, identify trends and investigate troubling numbers. Prior to implementing a EAP, the employer should research the particular needs of the employees so as to provide them a customized EAP (Sanders, 2000). Employee assistance programs were first conceived as a response to the immense impact that employee substance abuse had on the company profit-line. EAPs are providing an ever-widening array of services that help employees stay physically and mentally healthy and thus more productive at work and more content with their private and professional lives. EAPs are a win-win situation. The employer adds to the bottom-line and the employees are happier and display more loyalty. Employees benefit by having the opportunity to receive several forms of professional assistance to help alleviate a wide array of life problems. References Bamberger, P. and. Sonnenstuhl, W.J. (1995). “Peer Referral Networks and Utilization of a Union-Based EAP.” Journal of Drug Issues. Vol. 25, N. 2, pp. 291-312. “Employee Development and Training.” (2003). Guide to Managing Human Resources. Ch. 11. Available March 2, 2007 from . “HealthPartners Employee Assistance Program.” (2007). Health Partners. Available March 2, 2007 from Herpel, E.P. (1997). “Improving the Quality of Internal EAP Managed Behavioral Care.” EAPA Exchange. Vol. 27, N. 5, pp. 16-17. Hillstrom, Kevin and Laurie Collier Hillstrom. (2002). “Employee Assistance Programs.” Encyclopedia of Small Business. Ed. Thomson Gale. Available March 2, 2007 from Kendall, Joshua. (February 28, 2000). “It’s Your Problem Too.” Business Week. Available March 2, 2007 from Oss, M.E. and Clary, J. (January 4-10, 1998). “EAPs are Evolving to Meet Changing Employer Needs.” Open Minds. Osterweil, Jody. (June 1991). “Evaluating and Revising EAPs.” Pension World. Potter, F.J.; Boyle, K.E.; Steele, P.D.; and Rush. M.W. (November 1995). “Reasons and Settings for Employee Assistance Programs.” Unpublished paper, presented at the American Public Health Association Annual meetings. Quinley, Kevin M. (February 2003). “EAPs: A Benefit That Can Trim Your Disability and Absenteeism Costs.” Compensation & Benefits. Report 17, N. 2. Sanders, Philip. (October 12, 2000). “How to Get the Best from an EAP.” People Management. Sharma, Vijai P. (1996). “Take Advantage of Employee Assistance Programs.” Mind Publications. Available March 2, 2007 from Steele, Paul Ph.D. (September, 1998). “Employee Assistance Programs: Then, Now, and in the Future.” Center for Substance Abuse Prevention. Read More